A new fundraising code of practice
The long awaited revisions to the Code of Fundraising Practice have been published by the Fundraising Regulator for consultation. But is it an improvement?
Yes and no, in our view.
We were promised a simplified, shorter code focused more on principles than detailed practice rules with duplication of other regulatory regimes (such as data protection) removed. To some extent that has been delivered.
The revised Code is 40% shorter but there are three lengthy supplementary “code-compliance” documents, covering documenting decisions, due diligence and monitoring. These are explicitly described as “not part of the Code”, so it is not clear whether or how the regulator will use them when investigating complaints.
The revised Code is certainly simpler to navigate. Finding the rules you need and understanding what they say is much easier. We are troubled that they are described as “rules” throughout the document. This doesn’t feel like the promised principles-based approach.
Some of the rules are definitely set out as principles with little or no prescription of what practices are required. This is a good thing in our view, although we accept that it could make adjudications by the Regulator more subjective.
However, others, particularly the rules relating to specific fundraising channels, are very prescriptive and don’t feel like principles at all; they feel like detailed rules that must be followed regardless of context. We would have preferred to see such details presented as examples of how the principles can be implemented rather than inflexible rules. The danger is that fear of these rules will inhibit some (particularly small) charities from trying new ways of raising money, which they need to do in tough times like those they are currently experiencing.
It’s also really disappointing that the code offers nothing of substance on use of AI in fundraising, an area many charities are struggling with and that small charities really need some help with navigating. The Regulator says that this is because this is an area that fundraisers are still grappling with. This feels to us like an opportunity missed and it risks the Code quickly becoming dated.
Our main disappointment remains that the Code feels like a document written to regulate large national charities and is a sledgehammer to crack a nut as far as small local charities are concerned. Surely it cannot be unreasonable to ask for a simpler, easier to implement code for small charities with limited capacity who are not, anyway, the main offenders when it comes to unethical fundraising practices.
So now we wait and see what will come out when the final code is published following the consuiltation.
For our part, we will continue to try to lighten the load by helping smaller charities develop and improve, including though effective strategies, good governance, positive collaborations and successful fundraising. To find out more please contact us at julian@almondtreeconsulting.co.uk to arrange free initial telephone discussion.