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Giselle Davies Partner & Head of Charity Law & Social Enterprise Team

UK Community Foundations Conference 2017 “Keep it Legal” - Charity Fundraising Advice for Community Foundations. Giselle Davies Partner & Head of Charity Law & Social Enterprise Team. 13 th September 2017. Charity Fundraising - Generally. Charity Fundraising law:

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Giselle Davies Partner & Head of Charity Law & Social Enterprise Team

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  1. UK Community Foundations Conference 2017 “Keep it Legal” - Charity Fundraising Advice for Community Foundations Giselle Davies Partner & Head of Charity Law & Social Enterprise Team 13th September 2017

  2. Charity Fundraising - Generally Charity Fundraising law: A set of legal requirements and a self-regulation system • The Code of Fundraising Practice • The Fundraising Regulator • Charity Commission • Other Regulators: • Gambling Commission • Local Authorities

  3. Fundraising – what do we mean? “Any means of obtaining money or other assets for a charity to use to fund its purpose(s)” Asking for: • Lifetime gifts from members of public • Appeals • Collections • Legacies • Grants Obtaining payment for: • Services • Goods • Events • Lottery tickets • Contractual arrangements

  4. Community Foundations & Fundraising Raising Funds for your Foundation • Different uses • Same legal responsibilities • For General Use • For Specific funds • By You • By Others

  5. Division of Responsibilities (summary) Charity Trustee Role = Voluntary in nature “The buck stops here” • Oversight and supervision • Ultimate responsibility Employee Role = Paid to do a job “The buck DOES NOT stop here” • Delegated responsibilities • Always subject to supervision

  6. Division of Responsibilities

  7. Division of Responsibilities Staff should: Understand the nature of a charity Understand the role of the Trustees Be aware of the governing document, the objects & beneficiaries Understand activities should further objects and meet Public Benefit Test Act within delegations

  8. What the Charity Commission says to Trustees (CC20) 6 Principles: Planning effectively Supervising fundraisers Protecting the charity’s reputation, money & assets Identifying and ensuring compliance Identifying and following recognised standards Being open and accountable

  9. Fundraising – Who does what? Fundraisers • Generate the bright ideas • Recommend to Board • If agreed, undertake the ideas in compliance with legal requirements • Report Back Trustees • Set Policy & Strategy • Test & question the bright ideas • Are they legally compliant? • How likely to succeed? • How expensive to undertake? • Agree actions and delegate • Supervise

  10. Fundraising – Basic Principle The buck stops with the trustees!

  11. Trustee Supervision (of…?) • Internal staff delegations • Professional fundraisers • Commercial Participators • Trading subsidiaries AND • Volunteers

  12. A Reminder - Delegations • Record in writing • Clear terms of reference • Complied with/enforced • Kept under review & updated • Interaction with contract of employment/job description

  13. CF Staff guidance to others • Volunteers generally • Named Fund client involvement Why? Helping to protect the CF’s reputation, money and other assets

  14. Protecting: Reputation: • Your CF Name and Charity number is used • Your CF may be held out as responsible Money: • Who is paying the costs/expenses of the fundraising activity/event? Other Assets: • Use of Premises/IT? • Potential damage to brand (name/logo)

  15. Particular Risks • Expensive Events • Cash Collections • Use of Data • Gift Aid • Fraud • Suspicious donations • Failed Appeals

  16. Compliance Fundraising law and regulation is made up of: • Charities Act 1992 • Charitable Institutions (Fund-Raising) Regulations 1994 • Charities Act 2011 • Charities (Protection & Social Investment) Act 2016 • Other legislation • Finance Acts • Gambling & Lotteries law • The Code of Fundraising Practise AND • Requirements of your governing document

  17. Legal Compliance (1 of 2) • Requirements for Professional fundraisers • Requirements for working with Commercial Participators • Registered status to appear on appeals, other documents (including websites) • Street Collections • Door to Door • Lotteries and Raffles

  18. Legal Compliance (2 of 2) • Data protection • Making unsolicited telephone calls • Sending out addressed mail • Working with/using children • Event Fundraising • Annual Report and Accounts • Serious incident reporting

  19. What’s new? • Charities (Protection & Social Investment Act) 2016 • From 1/11/16 • Extra information to go in agreements with professional fundraisers and commercial participators • Extra statements to be included in accounts of charities where an audit is required.

  20. What’s new? • The Fundraising Regulator • Established 1/7/16 • New body responsible for supervising charities’ compliance with the Code of Fundraising Practice and adjudicating complaints and the Fundraising Preference Service • Funded by levies from largest charities

  21. What’s new? • Fundraising Preference Service • Launched 6/7/17 • The new weapon against “junk” communications? • Gives public the opportunity to withdraw consent to communications from a specified charity (a “suppression request”) • Charity has 28 days to comply • 6,305 suppression requests received in first month!

  22. Data Protection Legal framework for direct marketing: • Data Protection Act 1998, and • Privacy and Electronic Communication (EC Directive) Regulations 2003 • Personal data can only be used for direct marketing if CONSENT given • Registration with TPS and MPS implies objection to communication unless specific consent already given • Suppression Request under FPS removes consent for identified charity (not charities generally).

  23. Top Tips • Don’t forget the value of Gift Aid – check how to maximise a donation with tax relief • Have clearly worded appeals (with a default gift for failed appeals) • Check your website for compliance (especially after an “upgrade”) • Be open and accountable • Deal with complaints promptly and sympathetically

  24. Now, have your say ………. Let’s learn from each other • Break into small groups • Choose a spokesperson • Discuss for a few minutes • Feedback to room

  25. Let’s learn from each other There are lots of examples of how to fundraise – What is the easiest way you have found to raise • Small amounts? • Large amounts?

  26. Let’s learn from each other Following on that theme, what have you found to be: • the easiest purpose to raise funds for and why? • The hardest and why?

  27. Let’s learn from each other And another one: Most successful type of event and why?

  28. Let’s learn from each other What have you found to be the easiest thing to get wrong or overlook when fundraising?

  29. Let’s learn from each other Pretend you are not a charity fundraiser or trustee: • What do you most hate about charity fundraising methods? • Does your charity use that method?

  30. Last question …. What will you take away from this session?

  31. Thank You

  32. Contact details Giselle Davies DD: 029 2039 1797 M: 07918 651 663 E: giselle.davies@geldards.com

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