Appendix 1: The Self-Regulation of Fundraising

Transcription

1 Appendix 1: The Self-Regulation of Fundraising A paper prepared by a Steering Committee consisting of representatives from the Charities Aid Foundation, Institute of Fundraising, Public Fundraising Regulatory Association, National Council for Voluntary Organisations, Association of Chief Executives of Voluntary Organisations, Scottish Council for Voluntary Organisations, Charity Law Association and the Charity Commission November 2004

2 The Self-Regulation of Fundraising Foreword 1. Introduction 2. The Regulation of Fundraising Scheme (RFS) an overview 3. The Administration of the RFS 4. The Fundraising Codes 5. Donors Charter 6. Membership of the RFS 7. The handling of complaints 8. Relations with the Charity Commission and other regulators Appendix A B Diagram to illustrate the way in which the Scheme would be run within the Institute of Fundraising Complaints handling flow chart 2

3 The Self-Regulation of Fundraising Foreword The Charities Aid Foundation (CAF) has been pleased to chair this steering committee from the voluntary sector which has taken on the job of seeing if it could construct a robust and participatory selfregulation scheme in relation to fundraising techniques and activities. The work emerged from the desire to find new ways to encourage best practice in fundraising, the initial recommendations from the Cabinet Office report, Private Action, Public Benefit, published in late 2002 and the deliberations of the Buse Commission. All the organisations represented on this steering committee believe that it is vital for the charity sector that a self-regulation scheme is established which will constantly help to drive up standards and contribute to maintaining the confidence of the general public in charities. As chair of the steering committee, I would like to thank all the members for their contributions, and Anne-Marie Piper from the Charity Law Association in particular without whom the exercise would have been much more difficult. Simon Hebditch, Executive Director, External Affairs, CAF 1. Introduction 1.1 The purpose of this paper is to outline in some detail the proposed scheme for the self-regulation of fundraising developed pursuant to the Buse Commission by a Steering Committee of representatives from leading bodies in the sector: Sue Brumpton, Public Fundraising Regulatory Association, Lindsay Boswell, Institute of Fundraising, Simon Hebditch, Charities Aid Foundation (Chair), Campbell Robb, National Council for Voluntary Organisations, Nick Aldridge, Association of Chief Executives of Voluntary Organisations, Stephen Maxwell, Scottish Council for Voluntary Organisations, Zoe Willems, Charity Commission and Anne-Marie Piper, Charity Law Association. 3

4 1.2 This paper is now to be shared with both the Home Office and the Scottish Executive to seek their support in principle. Business planning and market research is currently taking place with funding from the Home Office and is due to be completed in December From this information the costs of self-regulation over the first years until breakeven will be calculated and funding applied for from both the Home Office and the Scottish Executive. Assuming a positive response to these funding applications it is anticipated that the scheme can then be set up, staff recruited and launched in The Regulation of Fundraising Scheme (RFS) an overview It is proposed that the RFS should comprise the following elements: Standards 2.1 The development/adoption and dissemination of Codes of Fundraising Practice and a Donors Charter. For further details see sections 4 and 5 below. Membership scheme and complaints procedures 2.2 A membership scheme open to organisations seeking to raise funds, those advising them and professional fundraisers under which they agree, inter alia, to adhere to the highest standards of fundraising, to promote the RFS and to submit to its complaints handling regime. For further details of the membership scheme see section 6 below and for further details of the proposed complaints procedures see section 7 below. Administration and control 2.3 The RFS will be administered by a dedicated staff team located within the Institute of Fundraising. A Council, comprising representatives from within the sector, members of the public and independent experts, will be responsible for overseeing the development of fundraising standards and the management of the complaints procedure. For further details about the administration of the RFS see section 3 below. 4

5 3. The Administration of the RFS 3.1 It is NOT proposed that the RFS should be established as a separate organisation. However, it is clearly important to the RFS that its independence and integrity be recognised. The proposal is therefore that it should be administered within a discrete operating division and restricted fund of the Institute of Fundraising (which will endeavour to be self-financing within a number of years) to be known as the Regulation of Fundraising Unit (RFU). The RFU will work with the RFS Council which will be constituted as a committee of the Institute with full delegated authority. A diagram illustrating the proposed arrangements is set out in Appendix A. 3.2 In devising these proposals the Steering Committee had regard to the similar arrangements used successfully for the Giving Campaign (which was hosted by the Charities Aid Foundation) and the Quality Standards Task Group (which was hosted by the National Council for Voluntary Organisations). 3.3 The RFU will: solicit and process applications for membership of the RFS; disseminate details of the RFS within the voluntary sector and to the public at large; handle inquiries about the RFS (and capture data relating to those inquiries) from scheme members, members of the public and others; provide support for RFS members in the form of tool-kits and a telephone help-line; monitor compliance with the RFS (by various means including the use of mystery shoppers ); administer the complaints procedure explained more fully in section 7 below; liaise with the standard setting bodies (see section 4 below). 3.4 It is proposed that it will be the role of the Council of the RFS to: oversee the operation of the RFS; 5

6 appoint the RFS Independent Complaints Reviewer (ICR) (or, if it is decided that there should be a separate ICR for any or all of the nations within the UK, Independent Complaints Reviewers); keep under review the Codes of Fundraising Practice and the Donors Charter; determine the range of actions which may be required of members and/or the sanctions which may be applied against them in the event of a complaint being upheld; consider cases as the final part of the complaints procedure following receipt of a recommendation from the ICR/s; publish an annual report on the RFS and the complaints received by the RFU (including broad details of complaints not falling within the Scheme and including complaints handled by RFS members details of which will be include in the member s annual returns to the RFU under the rules of the RFS). 3.5 It is intended that the RFS Council will be comprised of representatives from: the fundraising voluntary sector in each of the nations within the UK; the general public; the Institute of Fundraising and the PFRA; together with individuals with relevant expertise (which might include lawyers, accountants and regulators). 3.6 It is proposed that the Chairman and the lay members of the Council will recruited by open advertisement. It is also anticipated that the organisations represented on the Steering Committee responsible for this paper will have a role in the nomination of representatives from the voluntary sector and in the interviewing and selection of the members recruited by open advertisement. 3.7 There could be a single ICR for the whole UK or separate ICRs for some or all of the four nations within the UK. It is anticipated that at the outset there will be a single ICR but, when funds become available from the Scottish Executive, an ICR for Scotland is envisaged. Whatever the final decision on numbers, an ICR will be an independent person with considerable experience in the handling of complaints. The ICR/s role is explained more fully in section 7 below. 6

7 3.8 It is intended that the RFS should be self-financing (through membership fees); in due course, however, initial funding will be sought to enable the Institute of Fundraising to establish the RFS infrastructure and for the development of toolkits and other materials to support members. A business plan and a budget for the scheme is currently being prepared. 4. The Fundraising Codes 4.1 It is a key part of the proposed RFS that members of the scheme will adhere to standard Codes of Fundraising Practice. It is anticipated that there will be a single set of standards for the whole of the UK 4.2 The Institute of Fundraising produces Codes of Practice and it is anticipated that, at least initially, the RFS will simply recognise the existing codes for the purposes of the scheme. Copies of the existing codes can be accessed via the Institute s website ( 4.3 It is intended that the RFS Council will play a role in driving up standards by using its experience to comment on and, where appropriate, to recommend new codes or changes to the existing codes. However, while the Scheme makes use of the Institute s codes, their contents will be determined by the Institute. 5. Donors Charter 5.1 With the aim of maintaining and increasing public confidence in charity fundraising, the focus of the RFS will be towards actual and prospective donors i.e. the general public. The proposed Donors Charter is seen as a key tool, and probably the first task of the RFS will be to adopt such a Charter. The Institute of Fundraising has already produced a Donors Charter (which is reproduced on its website) and it is anticipated that this will be used as the basis for the Donors Charter under the RFS. 7

8 5.2 It is intended that the Charter will explain to the public: the existence of and principles underlying the RFS and the Codes of Fundraising Practice; what they can expect from members of the RFS; how (and to whom) they raise any concerns or complaints about fundraising. 6. Membership of RFS 6.1 Membership of the RFS will not be restricted to or linked with membership of the Institute of Fundraising or any other body. RFS membership to be open to any: charitable, philanthropic and benevolent bodies who raise funds; fundraising consultants and advisers; professional fundraisers. 6.2 It is proposed that organisations wishing to become members of the RFS will be able to join by applying directly to the RFU. A graded fee structure will be developed with the aim of making the scheme selffinancing in due course. 6.3 Bodies wishing to join the RFS will be required to provide evidence of their governing body having resolved to adhere to the rules of the scheme which will include: adhering to all applicable Codes of Fundraising Practice; using the RFS logo on all fundraising materials and their website (and removing the same on leaving the scheme). It is recognised that there will need to be transitional arrangements to allow smaller organisations to comply with these requirements; providing donors with access to hard copies of the Donors Charter, details of the RFS and the complaints procedures (and including the same on their website); putting in place an annual audit and procedures to monitor adherence to the Codes of Fundraising Practice; establishing an internal complaints handling procedure which meets the timetables and procedures set by the RFS; 8

9 submission of annual return to the RFS dealing with all aspects of scheme compliance; agreeing to monitoring by the RFS and to abide by decisions made by the RFS Council in response to complaints; paying the appropriate membership fee. 6.4 Membership will confer the following benefits: the right to use the RFS logo and to be recognised as a member organisation; help and guidance from the RFU in the form of tool-kits and telephone advice; access to an independent, donor-focused complaints structure. 7. The handling of donor s complaints 7.1 Appendix B contains a flowchart to illustrate the steps open to a donor in pursuit of resolution of his/her complaint. 7.2 To fall within the RFS a complaint will need to relate to one or more breaches of the approved Codes of Practice and/or the Donors Charter by an RFU member. It is intended that full details of the complaints process including the timetable within which each of the steps will take place and the possible outcomes (which will be determined in advance by the RFS Council) will be included in the RFS membership materials and also in an RFS leaflet and on its website. Step one 7.3 In the first instance the complainant will have to put his/her complaint in writing to the body for whom funds are being raised (whether or not the complaint is about an employed or an independent fundraiser). In the case of complaints against fundraising consultants, the first step will be to submit a written complaint to the management of the firm involved. Scheme members will be required to include details of all complaints (whatever their outcome) in their annual return to the RFU. Step two 9

10 7.4 If the complainant is dissatisfied with the response s/he receives at step one s/he may submit a claim in writing to the RFU. Receipt of all complaints will be acknowledged by the RFU in writing (and the data captured for analysis). If the complaint does not relate to a member of the RFS the complainant will be informed of this and advised of any alternative avenues that s/he might consider. 7.5 If the complaint relates to a Scheme member the complainant will receive a copy of the leaflet explaining the way in which the complaint will be handled in accordance with RFS standard procedures and the range of outcomes that might follow if it is upheld. 7.6 Eligible complaints will then be assessed by staff at the RFU (in accordance with standard procedures and within a preordained timeframe) to ensure that they relate to an alleged breach of the relevant Code of Fundraising Practice or the Donors Charter. If this is not the case (or if the complaint raises other legal or regulatory issues) the complainant will be advised and provided with details of other bodies (such as the Charity Commission and the Office of the Scottish Charity Regulator (OSCR)) that the complainant may wish to contact. 7.7 Once satisfied that a complaint falls within the RFS, the RFU will then investigate the complaint before determining whether or not the complaint is upheld. In the course of the investigation of claim the staff of the RFU may call for such further evidence or interview those involved as they deem necessary. 7.8 At the end of the RFU investigation the complainant and the body that is the subject of the complaint will both be informed in writing of its outcome and the action or sanction (if any) which the RFU determines should follow. The range of sanctions will be set, in advance, by RFS Council and may include: no further action; an apology; additional or revised training of fundraisers; an undertaking to cease or change the practice/s which were the subject of the complaint; monitoring by the RFU; withdrawal from membership of the RFS. 10

11 Step three 7.9 In the event that either the complainant (or the body against which a complaint has been upheld by the RFU) is dissatisfied with the outcome determined by the RFU he/she/they may request that the matter be referred to the ICR (or the appropriate ICR in the event of there being one for each nation). The ICR will review the case (and may call for such further evidence as s/he considers necessary to do so) before preparing a report for the RFS Council making a recommendation as to what action (if any) s/he considers would be appropriate in relation to the complaint or, more generally, in relation to the fundraising practice or Codes involved. Step four 7.10 The determination of the RFS Council in response to the ICR s report will be final and a summary of determination will be sent to the complainant and to the body or person complained about. It will also be published on the RFS website To ensure transparency regarding the views of the ICR/s, it is intended that his/her/their reports should also be published (possibly on the scheme website or within the RFS annual report) In the event of reoccurring complaints about a particular method of fundraising or fundraising by a particular group or sub-sector the RFS Council may also take a range of further actions including liaison with the Institute (over the relevant Codes), or with representative bodies of the sector or sub-sectors concerned. 8. Relations with the Charity Commission, OSCR and other regulators 8.1 It is anticipated that all the regulators of the voluntary sector (including the Charity Commission, OSCR and the Financial Services Authority) will: i. publicly welcome the introduction of the RFS; 11

12 ii. recommend membership to fundraising bodies as a way of demonstrating compliance with best practice in fundraising; iii. signpost the RFS s complaints procedures to would-be complainants. 8.2 It is not intended that the RFU will itself pass details of complaints made under the scheme to any regulatory body (as this is considered to be a potential deterrent to organisations joining the RFS), except in cases where there is evidence of a clear and serious breach of the law. 8.3 Once established the RFS will clearly have unrivalled details of the current nature and magnitude of fundraising complaints. It is anticipated that the RFS Council and staff will establish channels of communications with regulators so that knowledge can be shared for the good of the sector. 12

13 APPENDIX A Organisation of the Regulation of Fundraising Scheme Institute of Fundraising Terms of reference with delegated responsibility Chief Executive & staff RFS Council The Institute s membership scheme & other activities RFU staff & activities Joint reporting Responsibility for disciplinary & employment issues relating to RFU staff

14 APPENDIX B Regulation of Fundraising Scheme Complaints Flowchart Step 1 Complaint to the Charity for which funds are being raised. Satisfied YES End of procedure. NO Step 2 Complaint to FRU. Satisfied YES Y E End of procedure. NO N O Step 3 Complaint referred to the appropriate ICR. RECOMMENDATION Step 4 Determination by RFS Council. End of procedure. 14