As a result of several complaints from long-term supporters, the Fundraising Regulator began an investigation into poverty-relief charity ‘Penny Appeal’ and has now published its findings. The results could serve as an important reminder for any charities that use fundraising as part of their initiatives.
The reasoning behind the investigation was due to funds not being used for their intended purposes, reallocation of funds, funds not being approved by donors etc.
Following further investigation by the Regulator, it found that the charity had breached numerous fundraising codes, including providing misleading information about the length of commitment when setting up monthly direct debits, poor complaints handling, etc.
These breaches triggered a selection of recommendations from the Fundraising Regulator to assist charities with their fundraising efforts:
1.Identify who is receiving the funds
It is crucial for charities to identify from the outset who benefits from the donations on any material related to fundraising activities.
2.Introduce ‘welcome packs’
Charities must ensure that any welcome packs or other material for donors makes clear how their donations are being used.
3.Identify all risk factors
Charities must state from the outset that in some cases, the charity may remove themselves from certain projects relating to international development due to the type of work involved.
4.Clearly state when funds are reallocated
Charities should clearly highlight when funds are reallocated for use anywhere other than where originally stated.
5.Highlight administrative fees
Charities should identify when any admin fees will be deducted from the final total.
6.Seek professional advice around refunds
Due to complaints from donors around refunds it is essential that charities understand the process around whether to issue refunds and in order to avoid any confusion, seek professional advice from the Charity Commission.
The PM+M team can help you understand the key areas recommended by the Fundraising Regulator to ensure you don’t fall victim to penalties, and help you prepare for any unexpected changes.
Contact PM+M charity specialist, and audit partner, Ceri Dixon, by clicking the button below, to arrange an informal chat to discuss your specific circumstances in more detail.
