Fundraising updates for faith-based charities

The new Code of Fundraising Practice launched on 1 November 2025. Since then, both the Fundraising Regulator and the Charity Commission have taken the opportunity to update their key fundraising guidance for charities in light of the new Code. The Fundraising Regulator has also published a blog in April 2026 aimed at faith-based charities highlighting particular fundraising issues faced by many churches and other faith-based charities.

We thought that it would be helpful to reflect on these, and other recent developments in fundraising law and regulation, in more detail from the perspective of faith-based charities.

The new Code of Fundraising Practice

The new Code of Fundraising Practice covers all fundraising across the UK. Whilst it is not legally binding, the Fundraising Regulator has the ability to investigate and “name and shame” fundraisers who breach the code. Faith-based charities need to understand and be able to comply with the code when they are fundraising, in the same way as other charities.

The new code does not fundamentally change the rules for fundraisers. The overarching principles - that fundraising must be “legal”, “open”, “honest” and “respectful” – remain the same. The new code is, however, shorter and takes a more principles-based approach. There are still specific rules in the code, but there are fewer of them. This means charities will need to apply good decision making based on the principles in the code, rather than relying on the code for detailed checklists on what to do. In practice, charities need to have policies, processes and training which meet the minimum requirements of the code, but are proportionate to their fundraising activities, so that trustees, staff and volunteers understand the code and make reasonable decisions in line with it.

Highlights for faith-based charities

Although the code is shorter, it can still be daunting for smaller charities, such as churches that carry out only limited or occasional fundraising. However, there are specific sections in the code and in accompanying guidance notes which deal with fundraising methods commonly used by faith-based charities:

• Donation boxes in churches are covered in the section on unstaffed collections (section 7.5 of the code).
• Tap-to-donate machines and the use of QR codes to collect donations are covered, along with other digital fundraising methods (so-called “convenience giving”) in the same section. The guidance on handling cashless donations, published in September 2025, provides detailed practical advice on how to comply with the code when using these fundraising methods. 
• Dealing with individuals wishing to make a gift in a Will is covered in section 14 of the code.

The regulator has also published two other key guidance notes of relevance to all fundraising charities:

• Donors in vulnerable circumstances was published in January and is essential reading for faith-based charities to understand their obligations under the code when engaging with donors who may be in vulnerable circumstances. 
• Guidance for using artificial intelligence in fundraising will be of increasing importance as AI becomes ubiquitous in desktop tools and services. This may result in more AI use in fundraising – whether to help create images or words for fundraising materials, or to help to analyse data or respond to donors. The guidance stresses the need for transparency (“the greater the risk of misleading donors, the more transparent you should be”) and human oversight, but also trustee involvement in decisions to use AI, based on informed risk assessments of ethical, reputational and legal issues.

Common fundraising issues for faith-based charities

As a result of several investigations into fundraising complaints involving church charities, the Regulator published advice in April 2026 on supporting faith-based charities to apply the code with confidence. The cases and the advice highlight several areas of the code for faith-based charities to be aware of when fundraising:

• Fundraising from congregations or faith communities

The regulator highlighted an overarching issue that faith-based charities may not always identify that fundraising carried out as part of worship, volunteering or community life is governed by the code.

The code applies to any request for money for charitable, philanthropic or benevolent purposes where the gift is freely given and nothing is received in return. The regulator stressed that members of a faith community are still members of the public, and that relevant gifts from church members need to be identified, managed and governed as fundraising in line with the code.

• Offerings, tithes and other collections

In a recent case and in its follow-up advice, the regulator made helpful comments on the code’s approach to offerings made during religious services or campaigns. In the case, the church said it distinguished between general fundraising and offerings, considering the latter to be expressions of faith rather than charitable donations, as they were made with an expectation of spiritual intervention – even though it claimed gift aid on them as charitable donations.

The regulator concluded that offerings fell within its definition of “donations” (i.e. “gifts voluntarily given without expecting or receiving something in return”), explaining that for the purposes of the code, there would need to be a material benefit rather than an expectation of faith to exclude them from being donations.

For many faith charities, the act of giving is celebrated as an expression of faith - but the regulator’s comments highlight that offerings, tithes and other collections for charitable purposes will still be regulated fundraising under the code.

• People in vulnerable circumstances

Many faith organisations may be dealing with community members in vulnerable circumstances. The regulator has highlighted the importance of identifying these situations, considering the needs of donors and being alert to signs that a donor may lack mental capacity. It also highlighted the increased need for appropriate safeguards when fundraising arises in pastoral contexts.

In the same case, the regulator found the church charity to be in breach of the code when soliciting a large donation from a church member in vulnerable circumstances. The charity was aware of the donor’s previous mental health issues, but assumed they had moved on and could consent to the donation. The fact that the charity did not have appropriate policies or training to deal with potentially vulnerable donors was a breach of the code.

• Specific appeals for religious buildings

Finally, another common fundraising situation for faith-based charities are appeals to maintain, repair or purchase church buildings. In a separate case, a church launched an appeal from its members to buy a building, but received complaints when the purchase fell through. The regulator concluded that most of the fundraising was in line with the code - it accepted that fundraising for purposes such as purchasing buildings often took some time, and that there may be some unsuccessful attempts. The main issue was that the church did not include information about what would happen if the campaign failed – which is a key requirement of the code (in section 1.2.2).

Other regulatory developments

There have also been notable developments in several other areas affecting fundraising:

• Charity Commission updated guidance

The Charity Commission has also updated its own guidance notes in February 2026 for charities engaged in fundraising. The main guide that fundraising faith-based charities need to read is Charity fundraising: a guide to trustee duties (CC20).

The separate guide on Fundraising for an emergency: guidance for charities (CC40) has also been updated, and covers fundraising for emergencies and contributions to relief efforts. This sits alongside the Charity fundraising appeals for specific purposes for situations when too much money is raised, or the purpose of the appeal cannot be achieved. Finally, on 12 June the Charity Commission and Fundraising Regulator published new joint guidance aimed at individuals fundraising for charity: Raising money for charity: public guidance.  

The main aim of the updates is to make the guidance more accessible and easier to use, especially for smaller charities. The focus remains on complying with the law and with the Code of Fundraising Practice, and on the importance of planning, monitoring activities, and protecting the charity’s funds and reputation.

• Direct marketing - the new charitable purpose soft opt-in

Faith-based charities, as with all other charities, can now take advantage of the “charitable purpose soft opt-in”, which came into force on 5 February 2026.

This allows charities to send direct marketing to supporters by electronic means, without needing consent, but only if certain conditions are met. The Information Commissioner’s Office (ICO) has published guidance on direct marketing using electronic mail, which explains how the new charitable purpose soft opt-in works, and is essential reading for any faith-based charity planning to use the rules in their fundraising. You can read more in our Stone King article. Charities may also wish to wait for the Fundraising Regulator’s expected own guidance for fundraisers on using the soft opt-in, which is expected “soon”.

• Martyn’s law - Terrorism (Protection of Premises) Act 2025

The Terrorism (Protection of Premises) Act 2025, known informally as "Martyn's Law", is expected to come into force no earlier than April 2027. It creates a legal duty on those responsible for in-scope premises and events to address the risk of terrorist attacks. This will affect places of worship, but with some important concessions, and relevant fundraising events. The government’s statutory guidance in April helps to explain how the rules will work in practice. Keep an eye on our website for further webinars in the coming months.

• Professional fundraiser and lower-paid collector updates

Finally, fundraising charities that use professional fundraisers (or lower-paid collectors) will need to review their arrangements from 30 September. The amounts that a person can receive before they are considered a “professional fundraiser” will increase to £15 per day, £1,500 per year, or £1,500 per venture for the purposes of fundraising law requirements, including solicitation statements and having an agreement in place. The amounts below which someone is considered a “lower-paid collector” are also changing.