On 4 February 2016, the Small Charities Coalition and the Institute of Fundraising jointly organised a public forum to discuss proposals for the new fundraising regulator and Fundraising Preference Service (FPS).
The forum was a response to criticism that small charities had not been consulted in the development of the new proposals. It was the first public consultation of any kind and the first opportunity for charities to engage directly with Stephen Dunmore, Chief Executive of the new regulator, and George Kidd, the Chair of the Fundraising Preference Service working group.
Big changes are coming and they will affect all charities, large and small. As a fundraising consultant and small charity trustee, I’ve felt the need to keep abreast of developments and air my own views. I’d recommend that you do the same.
I’ve written this blog to help anyone who needs to get up to speed. Below you’ll find links to key documents, a quick summary of the headline news and our recommendations for what to do next.
WHAT TO DO NEXT?
1. Meet as a Board or Senior Management Team to discuss the implications
While small charities may yet be exempted from the FPS, the forthcoming changes could well have a real impact on your charity. You may be forced to pay a levy towards the new regulator, dedicate additional resources to preparing your fundraising campaigns, and face sanctions for inadvertently breaching new rules. Your supporters could sign up to the FPS because of aggressive marketing by a larger charity without realising that they won’t be able to hear from you again.
We’d recommend reviewing the key documents and making sure that you’re up to speed now. Even if you can’t take direct action until more details are revealed, you can discuss how to monitor developments, whether you want to have a voice in the consultation process, and how you can stay flexible in order to make any necessary changes later.
Are you over-reliant on individual giving? What would happen if a percentage of your supporter base suddenly became uncontactable tomorrow? Are there any fundraising opportunities open to you that you could start to develop now in order to be less susceptible to the changes? Do your existing trustees have the confidence and knowledge about fundraising to navigate the changes effectively?
Periodically reviewing your fundraising strategy and testing how it would stand up to possible external changes is always important. Doing so now is strongly advisable. Find out more about how we can help you with your strategic planning.
It’s easy to kick and scream about the forthcoming regulation changes or blame it all on the big charities. However, we’re undoubtedly in this position because public trust in charities has plummeted, and many of the reasons are justified. Now is a good time to evaluate how well you communicate with supporters. Do your staff and volunteers have everything they need to do this properly? Is there guidance for communicating with vulnerable donors or evaluating potential corporate donations?
If the answer is ‘no’, be proactive and change now. If you’re doing this well already, make sure your supporters are aware of it. Media and public scrutiny of charities is likely to keep escalating, so stay ahead of the curve and inspire trust by saying “these are the steps that we’ve voluntarily taken” rather than appearing to only react to enforced changes.
The forum on 4 February was a very positive first step, but charities must keep engaging with the process and keep the pressure up by highlighting which issues and unanswered questions are important to them.
There are still too many grey areas. How will the new regulator and the FPS be funded without jeopardising the viability of small charities? Will potential FPS subscribers realise that they may be blocking all future fundraising communication from their local charity, school or hospital? Will the FPS truly remain “a last resort for vulnerable donors” and not an easy button that everyone can press when, for instance, the Daily Mail or the One Show run their first feature about it?
I believe that we all have a responsibility to the sector – and also to the public – as well as ourselves. Some of the criticism of charities is justified and many of the proposed changes are needed. However, it’s so sad that the first ever communication preference service to target a specific industry is aimed at charities. We have a proud tradition of charitable giving in the UK but, if new fundraising regulation goes wrong, we could decimate this. Can you really afford to stay silent?
Keep in touch with the Small Charities Coalition and the Institute of Fundraising to stay abreast of developments and further opportunities to have your say. Contact them to actively voice your support. Share this blog post and spread the word to colleagues and friends.
Recent events have proved that your voice can make a difference. Please keep using it.