How has the Code of Fundraising Practice changed?

Following a three-year review, the new Code of Fundraising Practice (the Code) has now been published. We worked closely with charities and the Regulator throughout the process to ensure the new Code is accessible to a wide range of organisations and fundraising approaches. And now we have the final Code, it is essential charities have the support they need to put it into practice.  

With this in mind, we have put together this short resource that highlights key changes to the Code. On top of this, we have organised a series of webinars with the Fundraising Regulator and leading charity law firm Bates Wells to give charities the opportunities to have their questions answered. 

Throughout the three-year review there was much debate about how the shift to a principles-based approach would impact fundraising and casework. To address this the Regulator has included a summary in the introduction of how this will work in practice, underlining that it can make the Code more user friendly and flexible to empower fundraisers to give donors the right experience. This is accompanied by some helpful advice on how to interpret subjective terms such as ‘proportionate’ or ‘reasonable’, with an example of this this can be applied to rule 2.2.2 on due diligence.

What’s more, the Regulator confirms that when they are investigating whether a rule has been breached, charities will have the chance to explain how the steps they’ve taken met the relevant principles. This is certainly welcome news as during the three-year review many charities raised that they wanted more clarity on how they could demonstrate compliance with principles.

To support the principles-based approach, the Regulator will now be releasing Code Support Guides that provide further advice and examples on how fundraisers can comply with principle-based rules. They have released the first set of these which look at due diligence, documenting decisions and monitoring fundraising partners.  

Producing more guidance could have several benefits for charities. For organisations that do not have a dedicated compliance or legal team, they can be an essential source of advice on how to comply with the Code and maintain high standards of practice. Equally, should best practice change in response to emerging technologies or shifts in donor behavior, guidance can be updated more quickly than standards in the Code, making regulation more agile. As such, we will continue to support the Regulator in creating such resources. 

In keeping with the new principles-based, the Code has been significantly streamlined with many standards merged under one over-arching principle. In fact, section 2.4 Paying Fundraisers, has been reduced from seven rules to one which states charities should give “appropriate consideration” to the approach they choose to pay fundraisers.  

Fewer standards could certainly make the Code more user-friendly and easier to understand, particularly for new fundraisers. It is worth noting, however, that several key rules such as the “three-step rule”, have been carried forward from the new Code to create consistency across the sector. 

Whilst there are now fewer standards, the Regulator has included more informative signposting to relevant legislation and guidance so fundraisers can understand their other legal responsibilities. In some cases, this accompanying text replaces previous standards. For example, the section on personal data processing has been removed and replaced with signposting to ICO rules and guidance.  

This could be a positive step towards making regulation clearer and more accessible. As fundraising is subject to a wide range of laws that are overseen by different government departments and regulatory bodies, it can be challenging to understand who enforces which rules. You can find a short resource explaining the different regulatory bodies and their remit here.

In response to changes in fundraising practice the Regulator has introduced new additional standards or amended previous ones that could impact how charities fundraise. Some of the key ones we have noticed include: 

• Additional standards on static collections; 

• Additional standards on keeping fundraisers safe; 

• Replacing the standard stating charities must not pay fundraisers “excessive amounts” with one that charities should pay fundraisers in a way that “aligns with their values”;

• New standards on Will-writing partnerships for legacies.

This is a pivotal moment for fundraising regulation, and it is essential charities are confident they are complying with the new Code. We therefore recommend: 

• All members review the sections of the Code that are relevant to their fundraising; 

• Inform their trustees of the new Code and highlight any policies or procedures that need updating; 

• Identify and update any relevant training materials.

Should you have any questions about the new Code, you can:  

• Attend one of our webinars on the new Code;  

• Use the Regulator’s Code advice service to get clarification from them; 

• Email us on policy@ciof.org.uk.