6 March 2019
The latest revision of The Code of Fundraising Practice was issued on 8 August 2018. At 87 pages, it isn’t short, but it is well-structured and gives clear advice. It should serve as a basis for your Charity’s fundraising policies, an excellent training resource and a useful work of reference for when problems arise.
Open, honest and respectful
As a member of the public, I am occasionally approached by charity fundraisers in public spaces, and I get the impression that these have become more active now that GDPR has had an impact on marketing by telephone, mail, and email. A colleague of mine told me that he was politely accosted only last week in a hospital foyer by a volunteer who wanted him to sign up to a regular standing order. He spoke to the volunteer out of courtesy and sympathy but was somewhat nonplussed by the change in her demeanour when he asked if he could go away and think about it.
This is such a sensitive skill: how to be persuasive without being offensive, how to remain welcoming and cheerful when nearly everyone you approach gives you an excuse and walks away. But the reputational damage that can be caused by badly-trained or insensitive fundraisers is huge.
Therefore the basic principle that underpins the Code of Fundraising Practice is that the conduct of fundraising organisations must be legal and must be open, honest and respectful.
Stay legal and adopt best practice
A review of fundraising regulations was carried out in 2015, and it led to the appointment of the Fundraising Regulator in July 2016. The Code of Fundraising Practice, originally devised by the Institute of Fundraising and the Public Fundraising Association, then became the responsibility of the Regulator. One of the Code’s features is that it combines legal obligations with the requirements of best practice, while at the same time making it clear which is which. So, for example, in its section on general principles, it makes it clear that a charity is obliged by law to apply all funds raised for a cause to that particular cause, but goes on to give practical guidance that is regarded as best practice but does not have the full weight of the law, such as:
- Fundraisers must take all reasonable steps to treat a donor fairly
- Organisations must not take advantage of the credulity of vulnerable donors
- If a fundraiser has reasonable grounds to believe that an individual lacks capacity to make a decision to donate, no donation should be taken. (On the other hand, it is in fact illegal not to return a donation to an individual who lacked capacity at the time.)
Best practice also dictates that fundraisers must not take advantage of mistakes made by donors, should not be an unreasonable intrusion on a person’s privacy, and should not be unreasonably persistent.
Guidance on all aspects of fundraising
The Code offers guidance on professional confidentiality, assistance on questions of when it is appropriate to refuse a donation, and the use of incentives offered to donors. You can find out what to do if the total of donations received exceeds the needs of the promoted cause, or if the stated project does not proceed due to insufficiency of donations. There is also advice, for example, on the two types of volunteer: “On behalf of” and “In aid of”, and how these are differentiated and managed.
The Code deals with all aspects of fundraising, from the content of fundraising communications to handling cash donations, from working with children to dealing with legacies.
Reinforce your charity’s reputation
Charities who adopt the Code need to have a clear and publicly available complaints procedure. They also need to have internal procedures to facilitate the reporting of complaints by volunteers and employees, in other words “whistleblowing”. Adoption of the Code is obviously an excellent exercise in public relations and in reinforcing public trust in your organisation. Any charity that is required to be audited must include in its annual trustees’ report a statement of its fundraising policies, so a reference to the fact that it complies with the Code of Fundraising Practice not only makes for concise reporting but also gives a strong message of reassurance to donors and supporters. Smaller charities that are exempt from audit requirements may also derive considerable benefit from adopting the code and ensuring that their supporters are aware of the fact.
You can download a copy of The Code of Fundraising Practice here. If you need assistance with any aspect of managing your charity please contact me or your local UHY charity adviser. Alternatively, if you would like to read more charity-focused blogs please click here.
