Information on SCVO's consultation into the future of charity fundraising regulation in Scotland, with detail on the three options proposed by the group for consideration by the sector.

1. Scottish Charity Fundraising Regulation

2. Fundraising in Scotland
• 24,000 Scottish charities registered with OSCR. Of
these:
– Just over 1% have fundraised income over £500k
– 40 have a fundraised income over £5m
– 170 spend more than £100,000 on fundraising
– For every £1 spent on fundraising, Scottish charities (with
an income over £25k) raise £6

3. Background
• Media coverage of fundraising practice
• Etherington Review (NCVO)
• SCVO ‘informal’ review

4. Scottish Fundraising Working Group
• CEOs from large and small Scottish charities
• Representatives of UK-wide charities fundraising in
Scotland
• Professional fundraisers & their professional body,
the Institute of Fundraising
• Observers from the Scottish Government and OSCR
• Sub-group of sector reps and legal advisers

5. Vision
• To achieve a Fundraising Regulatory system that:
– Commands confidence in charity fundraising
– Inspires public trust
– Promotes good fundraising

6. Principles
• Development of three options that are:
– Clear and accessible
– Streamlined
– Connected to the existing regulatory model (OSCR, Information
Commissioner)

7. Is there a problem with fundraising in Scotland?
• Regulator’s views: Yes
• Public / donor’s view: Mixed
Things have to change to resolve the discontent amongst
donors and the public.

8. Options for
Fundraising Regulation
Richard Hamer, Animate Consulting
Secretariat, Scottish Fundraising Working Group

9. The charity
fundraising
regulator
for
member
charities
Assesses member charities’
compliance with the Code
& can propose amends
Part-fund running costs through
(voluntary) membership fees
Enhances fundraisers’ skills
& understanding of Code
Fund running costs through
(voluntary) membership fees
Monitors complaint levels
& volume of fundraising
Fundraiser
Charity
Part-fund running
costs through
(voluntary)
membership fees
Regulates
& oversees
effective
governance
May report
concerns
arising from
complaints
Council
The compliance
body for
street/door-door
fundraising
Liaise over
who
fundraises,
where
& when
Rule Books
Fund
running
costs
through
levy
Proactively checks compliance
with Rule Books and
issues fines
Current:
A UK-wide self-
regulatory system
Submit
complaints
Gives
‘Fundraising
Promise’
Public Reports
complaint
outcomes
UK Code of
Fundraising
Practice
The
professional
body for
fundraisers
Compliance
with Code is a
condition of
membership

10. Submit
complaints
Funds running costs through compulsory
levy (if spending £100k+ on fundraising)
Reports
complaint
outcomes
Public
Regulates
& oversees
effective
governance
Close co-
operation
Option 1:
A UK-wide Fundraising
Regulator acts as
intermediary,
in place of the FRSB
Fundraising
Preference
Service
Database maintained of those not
wishing to receive charity calls/mailing
Investigates if concerned about
fundraising – no need for complaint
Imposes sanctions if fundraising
standards unacceptable
Fundraising Regulator
UK Code of
Fundraising
Practice
(incorporating
PFRA Rule
Books)
UK
Parliament
Scottish
Parliament
Reports to:
Potentially
Fundraiser
Charity
Council
A new merged
body for
fundraisers
promoting
professionalism
& compliance
Part-fund running costs
through (voluntary)
membership fees
Liaise over who fundraises, where & when
Part-fund running costs through
(voluntary) membership fees
Enhances fundraisers’ skills
& understanding of Codes

11. Benefits of Option 1
A UK-wide Fundraising Regulator acts as intermediary
• Single, UK-wide, regime simple for donors/public
• Single set of standards for fundraisers across UK
• Single regulatory regime for fundraising charities
• Low-cost option for large cross-border charities

12. Issues with Option 1
A UK-wide Fundraising Regulator acts as intermediary
• It’s not much different from the current system
• Only charities spending £100,000+ on fundraising
must be regulated (170 in Scotland)
• The Fundraising Regulator would need to be
sensitive to Scottish needs
• The UK Government’s direct involvement could
signify statutory regulation to some

13. Regulates
& oversees
effective
governance
Close co-
operation
Part-fund running costs through
(voluntary) membership fees
Enhances fundraisers’ skills
& understanding of Codes
Fundraiser
Charity
Council
A new merged
body for
fundraisers
promoting
professionalism
& compliance
Part-fund running costs
through (voluntary)
membership fees
Liaise over who fundraises, where & when
Submit
complaints
Reports
complaint
outcomes
Investigates if concerned about
fundraising – no need for complaint
Imposes sanctions if fundraising
standards unacceptable
Scottish Fundraising
Regulator
Location A
Scottish Code of
Fundraising
Practice &
Fundraising
Guarantee
Option 2:
A new Scottish Fundraising
Regulator acts as
intermediary
Public
Location B
Scottish Code
of Fundraising
Practice &
Fundraising
Guarantee
Scottish
Standards
Committee with
wider
representation
If location B:
Assesses charities’
compliance with the Code
& proposes amends

14. Benefits of Option 2
A new Scottish Fundraising Regulator acts as intermediary
• A single, dedicated, body with a clear purpose
• Designed around the needs of the Scottish public
and charities fundraising in Scotland
• Mirrors regulation in England and Wales
• Fundraising complaints would be heard in Scotland

15. Issues with Option 2
A new Scottish Fundraising Regulator acts as intermediary
• Confusion due to two Fundraising Regulators
• The cost and inefficiency of having two similar bodies
• The potential for it being seen as a Scottish solution
for the sake of it being Scottish
• It involves the most significant change

16. Charity
Part-fund running costs through
(voluntary) membership fees
Enhances fundraisers’ skills
& understanding of Codes
Fundraiser
Council
A new merged
body for
fundraisers
promoting
professionalism
& compliance
Part-fund running costs through
(voluntary) membership fees
Liaise over who fundraises, where and when
Submit
complaints
Reports
complaint
outcomes
Investigates if concerned about
fundraising – no need for complaint
Regulates & oversees effective
governance on all charity matters
Imposes sanctions if fundraising
standards unacceptable?
Scottish
Parliament
Reports on
fundraising
through
existing
mechanism
Scottish Code
of Fundraising
Practice &
Fundraising
Guarantee
Scottish
Standards
Committee with
wider
representation
Option 3:
No intermediary: charities
and OSCR have an
enhanced role
Public

17. Benefits of Option 3
No intermediary: charities and OSCR have an enhanced role
• Primary focus is on self-regulation by charities
• Fundraising standards aligned to Scottish
requirements and legislation
• The public would see a simpler system
• Extends charities existing relationship with OSCR

18. Issues with Option 3
No intermediary: charities and OSCR have an enhanced role
• Could be seen as Scotland opting-out of fundraising
regulation
• Two regulatory systems for cross-border charities
• The fundraising standards are held in a low profile body
• OSCR’s enhanced role could signify statutory regulation
to some

19. Fundraising Preference Service
• Has similarities to Telephone Preference Service - but not
legally enforceable
• Is part of Fundraising Regulator, therefore definitely in
Option 1 – optional for others
• Will be a ‘nuclear option’ – reset button will opt out of all
contact from charities
• Information Commissioner & UK Parliament PACAC
unconvinced – but what do the public want?