The Intelligent giving blog

When transparency in fundraising goes wrong

Adam Rothwell - Tuesday, May 20, 2008

A transparent piggy bank WHEN ASKING YOU for a donation, professional fundraisers are required to reveal how much they get paid. A step forward for transparency, I thought.

I was wrong. As it stands, the rules apply only to people who actually ask for cash (PDF) – in other words, to chuggers or telephone fundraisers. They don't apply to fundraising techniques which are indirect, such as direct mail or clothes collections.

And here lies the problem. Most people, it seems, dislike direct mail and think it’s wasteful (PDF). And question-marks hover over the efficiency of clothes collections. Yet the regulations do little to address these concerns.

This surely represents a mistake. First, donors won’t be able to compare the efficiency of different forms of fundraising unless each form is treated equally. And second, the regulations represent a missed opportunity to restore trust in direct mail and clothes collections.

As LMC has pointed out elsewhere on this site, it’s often very hard to work out whether clothes collections are legitimate, and, even if they are, whether they are worth contributing to. But, as rspcacambridge has explained, with a bit of explanation of how the collections work, confidence in this method of fundraising can be restored.

I’m all in favour of fundraisers disclosing their earnings. I think we have a right to know. But the rules as they stand just don't make sense.


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Submitted by rspcacambridge (not verified) on Wed, 21/05/2008 - 12:57pm.

"Where a person within subsection (6) solicits money or other property for the benefit of one or more particular charitable institutions, the solicitation shall be accompanied by a statement clearly indicating—"

Surely "or other property" covers direct debits, clothing collections etc.?


Submitted by Adam Rothwell on Tue, 20/05/2008 - 2:13pm.

I must agree with you Catman, in saying that fundraisers have had to make disclosure statements for some time now. But it's also been clear for some time - or at least, it's been clear to the government - that disclosures have very often been "not specific enough" (PDF, p.6). Indeed, the Prime Minister's Strategy Unit recommended that the law regarding fundraising disclosures should be changed in its landmark 2002 report, Private Action, Public Benefit (PDF).

The Charities Act 2006 enacted this change, meaning that fundraisers now have to give more specific details regarding their pay. This problematic change in the law was discussed in Professional Fundraising (ahem) last month, in a rather good column by Gordon Michie of Relationship Marketing (which sadly isn't available online).

Anyhow, I agree that the best time to kick up a fuss about the new rules would have been a few years ago. Unfortunately, though, we've only been around for a year and a bit - so we're using this opportunity to raise awareness of the issue.

Adam, Intelligent Giving

PS - I am young and trendy, thank you.


Submitted by catman on Tue, 20/05/2008 - 1:39pm.

Adam,

The time to be concerned about the fairness of disclosure statements was about three years ago when the Charities Act was still a Bill going through parliament. Maybe you should be asking key sector organisations like...maybe the IoF how they lobbied for changes to these statments to make them fair.

And to say that these statements affects street and telephone fundraisers (why must you say chuggers? Do you think it makes you sound young and trendy?) is showing that you are not quite up to speed.

Street and telephone fundraisers have had to make disclosure statements since the the Charities Act was last revised, in 1993. If you had a subscription to PF magazine, you would have found out that a major charity had not considered the impact on their cash collectors in the run up to their National awareness/fundraising week meaning all of their cash collection could be liable for a £5,000 fine!

catman 


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