The Fundraising Regulator has launched a three-part consultation on the code of fundraising practice, with the aim of improving standards in relation to online fundraising platforms, complaints handling and the telephone preference service (TPS) assured certification
The proposals are a result of the engagement had between the Fundraising Regulator and many of the fundraising platforms, and with the Financial Conduct Authority (FCA) in its role as the statutory regulator for the payment services directive.
The Fundraising Regulator says all parties have recognised the need for regulation following a sharp rise in the use of fundraising platforms over the past few years by members of the public wanting to raise money for causes they care about.
The first two parts of the consultation (A and B) invite feedback on specific issues raised by the sector in relation to complaints handling and the TPS assured certification. The deadline for response on these is 28 February 2018.
Part C proposes to introduce a new section to the code for online fundraising platforms and aims to ensure that these platforms provide adequate and clear good practice guidance to individuals setting up a fundraising page on their sites.
It also aims to ensure relevant platforms follow the legal requirements set out within the recently introduced payment services regulation 2017.
Under the proposals, where a fundraising platform receives a proportion of the donation or gift aid as remuneration for hosting a fundraising campaign, the organisation must make clear how their remuneration will be calculated and the amount they will receive.
In addition, fundraising platforms must publish good practice guidance for individuals setting up a fundraising page on their website to ensure that prospective donors are adequately informed about appeals in advance of donating and that funds raised are administered effectively.
The guidance must also highlight the implications of raising money for a cause where no charity is identified as the beneficiary, including the possibility that the appeal may itself need to be registered as a charity with the Charity Commission, and that if the fundraising platform is itself a charity, that the appeal will need to satisfy the legal requirements for public benefit.
The deadline for response on fundraising platforms is 14 March 2018.
Consultation on the Code of Fundraising Practice - February 2018 is here.
Report by Pat Sweet
