Big Shake Up For All Fundraising Charities In The South West
From 1st April all professional charity fund raisers must tell the public how much of their donation will go to the charity and how much will go towards wages and overheads or face conviction in the courts and pay a fine.
Shops and businesses donating to charity a proportion of the sale price on particular promotions will also need to state clearly the extent to which the charity will benefit.
Anna Roderick, charity specialist at south west law firm Foot Anstey explained
“The new laws, under the Charities Act 2006, are part of the biggest shake up in charity law for four centuries. They aim to protect the public trust in charities by helping them make informed decisions about their donations or purchases from a charity.”
Professional fundraisers, whether collecting on the street, via telephone or door-to-door, must state up front to potential donors what proportion of each donation will go to charity, what proportion goes towards paying their own wages, and how this is worked out.
This means a professional fund-raiser paid an hourly rate collecting money either on the street or by telephone must say “ I am a paid professional fund-raiser working on behalf of charity X and I am being paid an hourly rate of £X per hour. I expect to be paid approximately £X for carrying out this programme of conversations with supporters like yourself throughout the whole of the year.
Similarly, shops and other businesses running promotions where they will donate a portion of the sale price on particular items to charity must state explicitly how much money will go to the charity or a best estimate.
Anna Roderick added “Many charities, both local and national, rely on professional fundraising as an effective way of raising money. The new provisions tighten up the current regime by requiring more specific information to be given to donors.
“The obligation for complying with these new regulations is on the professional fundraisers or businesses themselves. Anyone failing to comply are liable to fines on conviction and risk adverse publicity.”
The new laws will also apply, in certain situations, to employees or trustees of a charity collecting funds from the public on its behalf, where they receive payment.
For more information or advice, contact Anna Roderick
Published 27/02/2008
