What rules should charities follow so that the public can trust their fundraising? We’ve been taking a look…

What’s fair and right when it comes to charities fundraising?

Should they bring in money for good causes no matter what? And if so, is it legitimate for them to target older or more vulnerable givers? Is it right for them to sell on details and information about the donors who so kindly spare them a monthly contribution, as long as it earns a few more pounds? Is it okay to pay collectors a commission and not ask too many questions as long as they sign people up?

Most people would answer no to those questions. Of course, the vast majority of charities are not doing anything of the sort. UK charities cover almost every aspect of society, with eight out of 10 people participating in at least one charitable activity in the last year, according to the most recent figures from the Charities Aid Foundation. Most serve an enormously valuable purpose, helping the poorest and most vulnerable in society and providing support for animals that is simply not offered by the state.

Unfortunately, a few bad apples risk bringing the entire third sector into disrepute. At least, that’s the stark warning from a committee of MPs, which has said charities have one last chance to show they can self-regulate their fundraising using their new voluntary regulator. Otherwise the state threatens to step in.

Charity sharks

Forget chuggers, some charitable fundraisers have behaved so badly that they have been dubbed ‘charity sharks’ for preying on the generous, but vulnerable.

The new voluntary regulator is being created in response to the scandals last summer where some charities were shown to have targeted the old and most vulnerable givers, as well as selling on their information until it reached scammers who then also targeted those donors.

Two particularly appalling cases hit the headlines. In one, an elderly man’s personal details were sold on at least 200 times. In another, a 92-year-old poppy seller ended her own life after complaining about feeling overwhelmed by begging letters. Although her family said the letters were not a factor in her death, they do highlight the intensity of the bombardment some vulnerable people face from charities.

So now there will be a regulator to ensure all charities keep to the high standards that most achieve. It’s an important move and one that could restore trust in the sector.

But what standards should charities keep to in order to restore and retain public faith in their fundraising?

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The loveMONEY charity charter

Here are our ideas on how charities should conduct themselves. Be sure to add your own ideas in the comments box below.

Respect your donors

Whether supporters are giving up their time or money, they deserve to be treated with respect. If they are properly respected then everything else should fall into place; respect should prevent a culture developing where donors are exploited, whether that’s by failing to protect their data or hammering them with demands for yet more cash.

Fundraisers will not be over-persistent

There is a fine line between enthusiastically seeking support and relentlessly hounding a potential donor. If someone clearly demonstrates a lack of interest or requests that they be removed from any contact lists, this will be respected.

Bonuses should depend on more than money raised

It could cause some charities difficulties if they weren’t allowed to employ and incentivise professional fundraisers. However, those fundraisers should not be incentivised based solely on the amount they raise.

It’s important to assess the quality of their public interactions too in order to maintain a high standard and not slip into bad habits.

Details should not be sold on

Again, this is part of the issue of respect. If a donor is generous enough to support a specific cause with a contribution or regular standing order then that should be enough. The charity should not seek to increase their revenue by selling on the details of ‘willing donors’, unless it has their permission.

And by permission, we don’t mean that the donor forgot to uncheck a box on the form; the donor should specifically give permission for their details to be shared.

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If rules are broken, privileges must be lost

Charities need to be able to reach out to new potential donors; it would severely limit their ability to fundraise if they had to sit and wait for donors to contact them.

However, cold calling, street fundraising and door-knocking should be a privilege and not a right. Those charities who abuse the system to hound potential donors and use heavy handed sales techniques to bully them into donating should lose that right.

Charity fundraisers should leave ID

As well as carrying an ID card, door-to-door and street-based fundraisers should have to hand over a card with their employee number on to anyone who wants one. This would allow people who feel they have been rudely dealt with or unfairly pressured to complain more easily and hold the fundraiser to higher standards.

Money must be spent appropriately

Spending on admin and fundraising will be as low as reasonably practicable.

Where salaries are paid, there will be transparency over the amounts received by top earners.

Charities will review their fundraising regularly

To avoid mission creep, where respect for donors is gradually eroded by a determination to raise more funds, charities must regularly review their fundraising ethics.

If they are outsourcing their fundraising to businesses like clothing collection companies and street fundraising enterprises, it is each charity’s responsibility to ensure those businesses are meeting the charter’s high standards.

What’s missing?

An obvious rule would be for charities to share information with donors on where their money is being spent, for example, how much is spent on running costs and how much on actual good works.

In fact, a report last month from the True and Fair Foundation suggested that one in five of the UK’s larger charities spent less than 50% of their donations on good work.

That’s worrying stuff, but it was roundly myth-busted by Karl Wilding, director of public policy at National Council of Volunteering Organisations in a blog post. Essentially, if you count what charities spend on fundraising efforts as admin spend then it makes it look as if a substantial amount fails to go on good deeds, when actually it allows even more to be spent doing good.

What rules would you set for charities to follow? Have your say in the comments below.

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