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Charities Act 2006 for Fundraisers Solicitation Statements Megan Pacey Director of Policy and Campaigns Events Fundraising SIG – June 2008.

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Presentation on theme: "Charities Act 2006 for Fundraisers Solicitation Statements Megan Pacey Director of Policy and Campaigns Events Fundraising SIG – June 2008."— Presentation transcript:

1 Charities Act 2006 for Fundraisers Solicitation Statements Megan Pacey Director of Policy and Campaigns Events Fundraising SIG – June 2008

2 Who does this impact on? Professional Fundraisers Commercial Participators Trustees or employees of charities

3 This is not just a face-to-face issue! For corporate fundraisers Retail promotions Charity Christmas Cards Prize Competitions Corporate Support Arrangements As well as face-to-face street fundraising!

4 What are the requirements there to do? The new requirements are provisions of the Charities Act 2006 and are designed to ensure that the public can make informed decisions about making donations or purchasing a product from which are charity will benefit to help protect the high levels of public trust and confidence that charities need to thrive. The overall intention of greater openness and transparency is strongly welcomed and an important objective.

5 The Challenges Overall intention of greater openness and transparency is welcomed and an important objective but the cumbersome nature of the actual declaration that is required to be made by professional fundraisers completely flies in the face of this objective. Solicitation Statements that are now required when making a fundraising solicitation are highly complicated and confusing.

6 This is the law …. Onus to make the solicitation statement lies with the commercial participator. Reputation of the charity is at risk if the statement is not in place. There is no opting out. Institute has raised with Government the concern expressed by Corporate Fundraisers that the requirement makes the charity/corporate donation more arduous and may have the unintended consequence of discouraging corporates to engage in a relationship with fundraising organisations.

7 What must the solicitation statement contain? Which voluntary or community sector organisation is to benefit from the promotional venture. If there is more than one benefiting organisation, the proportions in which they are to benefit. How much of the proceeds from the promotion will go to the voluntary or community sector organisation, or as accurate an estimate as is reasonably possible.

8 Examples of commercial participator solicitation statements x% of the purchase price will be donated to charity y. It is expected that we will donate £z in total. For each item sold £x/xp will be donated to charity y. It is expected that we will donate £z in total. Company x will donate y% of profits from this promotion to charity z. This is expected to be at least £w.

9 Examples of commercial participator solicitation statements: Company x will donate £y to charity z as a result of this promotion for the first w items sold, and a further £s for each additional item sold. The total amount to be donated is expected to be £t Further information could also be supplied in addition to explain the relationship more fully.

10 Payroll Giving “I work for fundraising company w and we are working for the benefit of x number of charities. To view a list of those charities, visit our website: “Fundraising company w is being paid to recruit supporters like yourself to make regular donations. You, as the donor, decide which you wish to donate to and how much you are going to donate to a (each) of the charity(ies). W fundraising company is paid by the charities who contract us to promote payroll giving. If we recruit you to their cause, we paid by the charity on a sliding scale fee basis, depending on how much you choose to donate. This is worked out by (payment structure needs to be explained). We estimate that fundraising company w will be paid £y by the charities who contract us to promote payroll giving in the course of this year. If you choose to give to a charity that we do not represent, we will not be paid but we will process the donation.”

11 More help? Members of the Institute can access briefings on Solicitation Statements from the “Members Only” area of the Institute of Fundraising website. Office of the Third Sector Guidance on Professional Fundraising and Commercial Participation.


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