One of the new requirements applies to registered charities have their accounts audited requiring them to provide extra information about fundraising in their trustee’s annual report.

Information must now be included on the charity’s:

• approach to fundraising;
• work with, and oversight of, any commercial participators/professional fundraisers;
• fundraising conforming to recognised standards;
• monitoring of fundraising carried out on its behalf;
• fundraising complaints; and
• protection of the public, from unreasonably intrusive or persistent fundraising approaches, and undue pressure to donate.

The second requirement relates to when a charity uses a professional fundraiser or commercial participator to raise funds. The written agreements between the charity and the third party must now include information on:

• the scheme for regulating fundraising or recognised fundraising standards that will apply to the professional fundraiser or commercial participator in carrying out the agreement;
• how the professional fundraiser or commercial participator will protect the public, including vulnerable people, from unreasonably intrusive or persistent fundraising approaches and undue pressure to donate; and
• how charities will monitor the professional fundraiser or commercial participator’s compliance with these requirements.

An alert will be sent to the 5,500 charities that will be affected by the change to the rules. The commission is also working with other sector bodies so that relevant information about compliance with the new rules reaches affected fundraisers and unregistered charities.

The rules aims to show the charity sector’s commitment to protecting donors and the public from poor fundraising practices and will help ensure that fundraising standards form part of the agreements between charities and third party fundraisers.

Sarah Atkinson, director of policy and communications at the Charity Commission said: ‘The new law is part of a package of fundraising reforms introduced last year to strengthen fundraising practice and regulation. We know that many in the sector are working hard to support these changes, and to review their own fundraising practices so that public trust can be restored.

‘The new Charities Act provisions will help charities to demonstrate that their donors and the public are treated with respect and protected from intrusive practices, and that recognised fundraising standards are always part of the picture where charities are working with a professional or commercial partner.’

Charities (Protection and Social Investment) Act 2016 is available here.