It’s been a bad year for charity fundraisers. A storm over the high-pressure tactics some of them were using to bring in cash was followed by fierce criticism from MPs and the government announcing that a new regulatory regime would be the last chance for charities to get their house in order. The turmoil has clearly had an impact on public trust. According to a YouGov survey earlier this year, only 38% of people now feel charities are trustworthy, compared with 54% in 2013 – and two-thirds think it is fair to accuse charities of aggressive fundraising.
So does the new framework, which will include a single fundraising regulator and a new method for members of the public to opt out of hearing from fundraisers (see box), offer a positive way forward?
Daniel Fluskey, head of policy and research at the Institute of Fundraising, says the changes are an opportunity to get things right – and that charities have been keen to engage positively. “There was certainly a need to bring public trust and confidence back into how charities fundraise,” he says. “When we spoke to our members, there was strong support for a new system that would be more effective, better resourced, have stronger sanctions and have wider reach across the charity sector. People say turkeys don’t vote for Christmas, but charities have told us they do want a stronger regulator – they know the importance of getting it right.”
Fluskey says even though it has been a tough time for charities, the early signs are that donors have remained loyal. As he points out, some of the big charities have taken positive steps to ensure their relationship with their supporters remains strong.
One of those taking the lead is the UK’s top fundraising charity, Cancer Research UK, which has announced an opt-in only policy for all fundraising, meaning supporters will only be contacted if they have given explicit permission. Ed Aspel, the charity’s executive director of fundraising and marketing, expects the move could cost millions in the short term – but he insists it’s the right thing to do.
“With an opt-in, you have to make it interesting, rewarding and worthwhile for people to hear from you,” he says. “It should mean we will develop better relationships with our supporters and will get genuine loyalty in the longer term. There may be fewer people we can contact, but the quality of relationships will be better.”
Aspel says charities will increasingly be looking at a mix of new, innovative ways to engage with their supporters, putting them more in control through, for example, their own fundraising webpages, to which they can recruit friends. Ultimately, though, he adds, it’s the way charities engage with donors that will be crucial to their future. “The key thing through all this is that the generosity of the British public has not changed – we are one of the most generous giving countries in the world,” he says. “It’s the behaviour of charities and the way they treat their supporters and respect them that’s going to make the difference.”
Lucy Gower, a former fundraiser at several charities, now a consultant and trainer, says in the new environment, fundraisers need to really focus on people. “We’ve got a big opportunity to innovate, to make sure we’ve got first-class engagement with supporters. We need to focus on the impact charities are making and the people’s lives that are being changed because of the good work they do – then give our supporters the best possible experience.”
Protecting donors: the new regulator
After the intense scrutiny of poor fundraising practices, including the aggressive targeting of donors and the selling of data, the way charities are regulated is being overhauled.
The changes, recommended in a review of regulation chaired by the National Council for Voluntary Organisations chief executive Sir Stuart Etherington, will see a new fundraising regulator replace the Fundraising Standards Board. As previously, the new regime will be a voluntary one, but, unlike in the past, the new regulator will now have responsibility for the code of fundraising practice under which charities operate. Charities spending over £100,000 a year on fundraising will be expected to fund the service through a levy, while smaller charities will be asked to register.
The regulator will also be responsible for a new Fundraising Preference Service, allowing members of the public to block communication from charities.
