Updated Code of Fundraising Practice – what do charities need to know?

Whilst the overall expectations around behaviour have not changed significantly, the new Code is strengthened in this area. It goes beyond what was contained in the old Code, for example, instead of at 1.1.2 requiring fundraisers to “be polite to people at all times”, there is now a new rule that requires fundraisers to “take all reasonable steps to make sure your fundraising is carried out in a way that reflects positively on fundraising in general”. This includes not unreasonably intruding on a person’s privacy; not putting undue pressure on a person to donate; not using persistent approaches; and accepting a request to end an interaction. The section previously called ‘Asking for support’ is now called ‘Informing donors and treating people fairly’. The rule states that “Your fundraising must not mislead existing or potential donors”. This includes by leaving out information, giving inaccurate or unclear information; or exaggerating details. The example given under this rule states that you must not claim a donation will be used for a restricted purpose (such as buying a piece of medical equipment or helping a particular child) if it may be used for another purpose.

Under the new Code (7.1.1), there is an overarching requirement that, while fundraising, fundraisers must behave in a way which reflects well on the charitable institution and fundraising in general. It then provides a non-exhaustive list of examples of ways in which fundraisers must not behave, as it could damage the reputation of the charitable institution or fundraising in general, including using inappropriate language or behaving in a crude or aggressive way; smoking, vaping or drinking alcohol and so on; and using your position for personal gain.

The sections of the Code regarding treatment of vulnerable people and children have been moved to a new section at 5.2.3.

There are new provisions to strengthen protection for fundraisers themselves under Rule 2 of the new Code. A charity must take reasonable steps to protect fundraisers from harm and harassment while fundraising. This includes having processes for fundraisers to report any issues that arise; and taking reasonable steps to deal with any issues that are reported.

There is a new Rule 9, regarding the use of online fundraising platforms. The section sets out the standards that the FR expects from these platforms to make sure that fundraising is responsible, that they are clear about fees and in line with the Code. 9.1 states that platforms “must take all reasonable steps to make sure charitable fundraising on your platform is carried out responsibly. This includes keeping up to date with the code and guidance that the FR provides; following relevant guidance for fundraising platforms; removing inappropriate charitable fundraising campaigns; and responding appropriately to reasonable requests from charitable institutions”.

Platforms must provide users with an easy to access link to the FR guidance for those setting up a fundraising page before they can accept donations on the platform. Users must agree to abide by the relevant sections of the new Code as a condition of using the platform.

Most fundraising platforms will charge a fee, either to the charitable institution or the donor, as part of their business model. Whether this is a fixed amount for each donation, a subscription by the charity, or an additional payment by the donor, information about these fees and how they are calculated must be clear and easy to find.

Reference to the other legal requirements applicable to fundraising platforms, such as data protection and financial services laws and regulations, are included in the Code and are designed to be more flexible when there are technology advances or legislation changes without the need for the Code itself to be updated.

The new Code is stronger on cold calling. You must not carry out collections at properties where residents have made it clear they do not want to be disturbed. This includes properties with a sign saying ‘no cold-callers’ or similar; and groups of properties in an area where cold-calling is not allowed (no cold-calling zones).

The new Code contains a rule which is more comprehensive covering a wider range of scenarios. The existing Code covers static collections, whereas in the new Code, at 7.5, it covers convenience giving and unstaffed collections where a fundraiser is not present. Collection methods for convenience giving include tap-to-donate and other automated collection methods, such as texting a dedicated number or using a QR code, and adding donations to payment transactions, for example by rounding up a bill in a shop or restaurant. Unstaffed collection methods include static collections, clothing and goods donation banks, and charity bags that are distributed door to door.

The Code states that it is nevertheless important that potential donors have access to all the information needed to make an informed donation. The Code sets out general standards for these types of scenarios. You must make sure that, before making a donation, donors can see clear, accurate and up-to-date information about the collection. This includes: the name of the charitable institution receiving the donation, and the charitable institution’s registration information (charity number or company number) and their contact details. If a collection is organised by a third-party collector, the information must also include details of how any fundraising partners will be paid as part of the collection, as well as the name and contact details of the collector, if this is different from the charitable institution. You must make sure donors can easily find the following information: details of any processing fees involved in the donation; and details of any secondary purpose which donations may be used for. If space is limited and it is not practical to include this information at the location of the collection, you should provide a short link to a webpage containing these details.

Here are some practical steps for charities to take to work towards compliance with the new Code:

• Read the new Code, which is available here.   
• The updated Code should be shared with key fundraising staff and trustees. 
• Review the charity’s current fundraising practices against the new Code to see where their practices need to be changed or strengthened, with the aim of updating their policies and procedures to align to the new principles-based Code. 
• Review the charity’s methods of fundraising against the code, e.g. door-to-door, events, static collections, legacies etc., to check for compliance against the new Code.  
• Review the charity’s donor communications to ensure they are ethical, clear and respectful.  
• Consider compliance with data protection legislation and whether your privacy notice needs to be updated.
• Review the charity’s public facing materials and display the FR badge where applicable.
• Charities will need to take reasonable steps to protect fundraisers from harm and harassment while fundraising. To ensure that they are compliant with this requirement, charities should conduct a review of the arrangements in place for fundraisers (including third party fundraisers) and the way that they work, and who they come into contact with, e.g. if fundraisers are lone-workers, do you have an appropriate policy in place? You should consider harm and harassment from different angles, e.g. from the public (particularly if individuals are fundraising face to face) or from co-workers etc. Ensure your policies and procedures are updated as necessary and, in particular, make sure fundraisers are clear on how they can report any concerns and how they will be dealt with.  
• Create a clear action list of those areas and assign responsibility to individuals and dates by which these need to be completed (bearing in mind that the Code comes into force in November 2025).   
• Consider whether the charity’s risk register needs to be updated with new or emerging risks and conduct risk assessments as necessary.
• Consider what staff, volunteer and partner training may be required to ensure everyone involved in fundraising for or governance of the charity understands the requirements of the new Code and the updated policies and procedures which apply. Consider updating induction materials.
• If the charity uses third-party fundraisers, these arrangements need to be audited to ensure contracts comply with the new Code.  
• Make sure the Charity documents its decision-making processes clearly, e.g. in trustee meeting minutes.  
• Charities and their trustees should monitor internal and third-party compliance.  

There is also additional guidance on ‘Engaging with the Fundraising Regulator’, which explains how the FR engages with fundraisers over concerns that have come to its attention about possible non-compliance with the new Code and what is expected in terms of timely and constructive engagement from such fundraisers. The guidance explains that if a charity does not engage constructively with the FR, for example, in relation to compliance concerns or investigation recommendations, then it will be in breach of the new Code and, in such circumstances, the FR may refer the issue to the Charity Commission or Information Commissioner’s Office, highlight the charity’s non-compliance on its entry on the FR’s public Fundraising Directory, suspend the charity’s use of the Fundraising Badge, or publicise the charity’s failure to comply, e.g. by updating the case summary on its website.