New Rules Will Affect 'Chuggers'

Walk down any high street and you will probably see someone collecting money for charity. Many of us now routinely experience being approached by a charity fundraiser hoping to persuade you to sign up to a direct debit there and then.

The use of ‘chuggers’ in this way has become a vital source of funding for many charities.

Do you ever wonder where exactly your money is going? And if the charity is using a professional fundraiser, how much do they get paid? Have you been unhappy at the way a fundraiser has dealt with you?

Unfortunately, these concerns do arise from time to time and do not help the public’s confidence in giving to charity. This in turn has made it even more difficult for hard-pressed local charities to raise the funds they need.

The good news is something is being done about it! The government and the charity fundraising industry have recognised these concerns by the passing the Charities Act and by the introduction of a new self-regulation scheme for charity fundraising. Together, these contain measures designed to improve public confidence in giving to charity.

When the Act comes into force all charities wanting to collect from the public or in a public place must apply for a certificate from the Charity Commission that they are fit and proper, and get a permit from the local council in the area the collection is to be made. This will replace the existing system of licencing of public collections which is something of a ‘postcode lottery’, with different rules applying in different parts of the country.

The only exception is for very small short term collections, where a certificate is not needed – apparently so that carol singers can still collect at Christmas!
The reality of modern fundraising is the need for professional fundraisers because volunteers can no longer raised enough money. Potential distrust should be reduced by giving greater transparency.

Professional fundraisers must clearly disclose how much they are getting paid and how much goes to the charity. Commercial companies undertaking promotions where some of the proceeds go to charity must state much more clearly how much will go to the charity and how this is worked out.

These measures should protect us from unregulated collections so long as they are properly enforced and should show us where our money goes. But what if we are unhappy at the way in which a charity has gone about fundraising or the behaviour of a fundraiser?

This is where the charity fundraising industry has stepped in to ensure improved practices.

The Fundraising Standards Board was created to drive up standards of charity fundraising, to help charities become more open and transparent in the way they raise funds, and to give the public a right of redress, if their complaint is not dealt with by a charity to their satisfaction.

All charities raising funds from the public (pretty much most charities) will be encouraged to join the FSB, as will all those involved in charity fundraising. The scheme will go ‘live’ early in 2007 but charities are encouraged to sign up now.

In doing so the charity needs to adopt and abide by codes of best practice laid down by the Institute of Fundraising, and sign up to the ‘Fundraising Promise’ , a series of commitments to potential donors ensuring high standards in fundraising.

Most if not all charities will sign up to the FSB scheme. It is hoped that in the future any charity not displaying the FSB logo will fail to attract funding from major donors and perhaps even the public. The public may start to wonder whether a charity not signed up with the FSB is a reputable one.

It is reassuring that, under FSB rules, members will promise not to put pressure on people to donate. They will respect the right of the public not to make a gift or to cancel an existing regular gift (most usually made by direct debit). This might not make it any easier to say ‘No’ to signing up for that direct debit donation or cancelling the one you set up, but at least you will know that no one should hassle you if that’s what you choose! It also means charities shouldn’t try the hard sell on the phone or on your front door step. Collectors also promise not to cause nuisance or disruption so if you are not interested you shouldn’t be pursued.

If you do come across a collector, whether it be in the street, on the phone, or at your home then you should find that they act fairly, reasonably and respectfully. If not, you will be able to complain to the FSB. All charities signing up to the scheme must have a complaints procedure in place and if the charity can’t resolve the problem then the FSB can step in and the charity must abide by the final FSB decision. Making charities more open and accountable is the aim of the game.

What we cannot tell at this stage is how well this new system will work. It is un- chartered territory and only a voluntary system. If it doesn’t improve standards then the Charities Act gives the government the power to impose further regulation. Most would hope that self regulation works so that this isn’t necessary.

These changes should make more people comfortable about giving to charity. In our eyes this can’t be a bad thing especially given the difficulties that many of the smaller charities in our region experience in generating sufficient funds to carry out their important work.

Published 27/12/2006.