Earlier this year I had the privilege of taking over from Suzanne McCarthy as Chair of the Fundraising Regulator’s Standards Committee. The committee oversees the development of the Code of Fundraising Practice (‘the code’) and has responsibility for the development of guidance that helps organisations fundraise in a legal, open, honest and respectful way.
To mark the start of my tenure, I wanted to share some thoughts with you about an often-overlooked aspect of good fundraising practice: the vital role trustees play in their organisation’s fundraising. Trustees can often be unaware of their fundraising responsibilities - both in terms of strategy and when monitoring their charity’s work. Below are some of the key responsibilities trustees need to be aware of along with some useful pointers to supporting guidance to help your charity fundraise in line with the code.
Trustee responsibilities
Trustees have a significant degree of responsibility and are ultimately accountable for their charity’s actions, including their fundraising activities. They are responsible for ensuring fundraising is carried out in compliance with the law and the standards in the Code of Fundraising Practice. As trustees, it is critical to act in the best interests of the charity and in the public’s interests.
Trustees are not expected to be fundraising experts – which is why it’s important to take advice when appropriate – but they must be aware of how important fundraising is to achieving their charity’s objectives and what fundraising is being done in the charity’s name.
Commit to good fundraising standards
Alongside advice for trustees from the Charity Commission for England and Wales, the Charity Commission for Northern Ireland, and the Scottish Charity Regulator (OSCR), the Code of Fundraising Practice is of key importance and applies across the UK.
You should ensure that you are familiar with the principles of the code and especially the standards in section 2, 'Responsibilities of those who govern charitable institutions'.
Questions you should ask about fundraising
Here are some questions your board could discuss to find out if your charity is meeting its fundraising responsibilities.
Has your charity undertaken a risk assessment?
Your charity must take reasonable steps to assess and manage any risks fundraising poses to the charity’s activities, beneficiaries, property, work and reputation – this includes thinking about how to avoid becoming a victim of fraud or money laundering. You should also consider any reputational risks that a fundraising campaign may pose to your charity.
Our guide on Due diligence and fundraising includes some of the key risks you should be alert to when fundraising and our guide on documenting fundraising decisions explains the importance of recording the decisions your board arrives at.
Does your charity have a policy that clearly lays out how the charity accepts and uses, or refuses donations?
A legal principle underpinning fundraising is that donations must be used for the purpose for which they were given. Changing the purpose of a donation, issuing refunds or refusing donations often requires input from the charity regulator in the country where your charity is registered. Refusal or return of donations can only take place in exceptional circumstances.
The Charity Commission for England and Wales (CCEW) has guidance on Accepting, refusing and returning donations to your charity, and our guide on Due diligence and fundraising highlights the key checks you should carry out on donors and their donations to meet the requirements of the code. Our guide on documenting fundraising decisions also stresses the need to keep a record of the decisions you make when accepting, refusing and returning donations.
Does your charity have a publicly available procedure for handling fundraising complaints?
Your charity must have a clear and publicly available complaints procedure which also applies to those who fundraise on your behalf. Your charity should also consider what lessons can be learnt from complaints they receive and how the charity can improve its services and the experience of donors. Read our complaints handling guidance to help guide your discussion.
Does your charity have the required agreements in place when working with others?
Your charity should ensure agreements with fundraising partners are in place, and that there are systems to monitor those relationships. Make sure your charity is familiar with the standards in part two of the code, and in particular, section 6, Fundraising Partnerships. Our guidance on working with professional fundraisers and commercial participators sets out what a charity needs to do to work with these types of partners.
You should also consider any conflicts of interests you have – either real or perceived – as a trustee when working with others. You must follow your charity’s conflicts procedures and disregard any other interests you have when making decisions. Our guide on documenting fundraising decisions includes a process for managing conflicts of interest, while our guide on monitoring fundraising partners sets out how to monitor those you work with.
Why not have fundraising as a standing agenda item?
I hope that trustees will use these resources to gain the understanding and tools they need to fundraise in line with the code. Our guidance library also has a range of other resources to help you fundraise in a legal, open, honest and respectful way.
This includes recently added guides on social media fundraising, online gaming fundraising, fundraising events, artificial Intelligence in fundraising, Data privacy and fundraising, handling cashless donations and donors in vulnerable circumstances.
Lastly, why not put fundraising as a standing item on your charity board’s agenda and encourage your executive team to sign up to our newsletter to keep updated on support and guidance from the Fundraising Regulator?
Guy Parker is chair of the Fundraising Regulator’s Standards Committee and chief executive of the Advertising Standards Authority (ASA)