Faith-based charities make a vital contribution to communities across the UK. For many, giving is part of religious practice – whether through collections, offerings, appeals, tithing or legacies.
However, not all faith-based organisations recognise that these activities are fundraising under the Code of Fundraising Practice (the code).
Recent casework has shown that risk can arise when fundraising activity is carried out as part of worship, volunteering or community life and is not identified, managed and governed as fundraising.
The Fundraising Regulator is committed to helping faith-based charities understand when the code applies and how to reduce risk while maintaining their mission and values.
When does the code apply?
The code applies to any request for money for charitable, philanthropic or benevolent purposes where the gift is freely given and nothing is received in return – regardless of the terminology or setting. Recognising this at trustee level ensures the right policies, training and safeguards are applied consistently.
Some organisations have told us they believed public fundraising consisted only of activities such as street collections, and did not include member-only appeals. However, members of a faith community are still members of the public and are entitled to the standards and protections set out in the code.
In one recent investigation, a faith-based organisation described certain “offerings” as part of religious observance rather than charitable donations. However, the donations met the code’s definition of a donation, were used for charitable purposes and Gift Aid had been claimed. The code therefore applied.
We have also seen one-off appeals to members incorrectly treated as not being covered by the code. In a recent investigation about fundraising for a new church building, the organisation did not explain what would happen if the target was not met. It also had no clear fundraising complaints process, as it saw the appeal as an internal matter rather than regulated fundraising. This led to multiple code breaches.
Similar issues can arise in relation to legacies, where someone leaves a gift in their will. An investigation last year into a legacy left to a church highlights the importance of good governance in these situations. Leaders and trustees should not be involved in setting up a legacy from which the faith organisation, or individuals connected to it, may benefit.
Other considerations when fundraising
Many faith-based organisations – as with other defined groups of individuals – often operate within close-knit communities. Giving may take place during services, in small groups, or alongside volunteering and pastoral activity.
In these settings:
- Fundraising may not be clearly separated from worship, community life or pastoral care.
- Leaders may be highly trusted.
- Requests may be made during visits to homes.
None of this is inherently problematic. However, it does increase the importance of recognising fundraising activity and applying appropriate safeguards.
A recent investigation highlighted risk factors where public testimonies about personal difficulties were linked with requests for offerings. Emotionally charged settings, particularly where there are no clear systems to identify and support people who may be in vulnerable circumstances, can increase risk.
Where giving is encouraged, you still need systems to recognise when someone may need additional support or care – particularly in relation to large or unusual donations.
Code Advice Service
As the regulator, we’re committed to supporting faith-based groups and smaller charities to meet their responsibilities under the code.
We provide a range of practical resources, including an introductory guide to the code, and we continue to develop our outreach work to make sure smaller organisations can access the advice and support they need.
Our monthly newsletter contains information about our regulatory activity, which includes news, guidance, research, investigations and events.
If you are unsure whether a particular activity falls within the scope of the code, or would like to discuss your approach with one of our expert advisers, our Code Advice Service can help.
The service is free, confidential and designed to provide practical guidance to charities of all sizes. Seeking advice early can help trustees apply the code consistently and with confidence.