EU data protection proposals could have a “potentially catastrophic” impact on charity fundraising, delegates at the Institute of Fundraising’s National Convention heard yesterday.
The proposals include a requirement for charities to secure an “opt-in” from donors to receive communications, and an “explicit consent” rule to use personal data, which would make it difficult for charities to send personalised mailings.
Speakers said the charity sector must do more to fight the proposals, and that charities must work with the Institute of Fundraising and other organisations campaigning against the proposed law.
At a special session on Monday about the reform of current legislation aimed at protecting personal data, Ben Ennis, director of the agency MediaLab, which hosted the event, said the proposals could have a “huge impact” on charities’ ability to raise money.
“Fundraisers have not really woken up to what is round the corner,” he said.
He said uncertainty continues to surround the proposals as they are yet to be finalised and could be changed. If they were made a priority, the reforms could potentially be finalised in January 2015.
The “opt-in” proposals for all media would mean fewer donors opting in to hear from charities, making it harder to request donations., he said.
In response, charities could test various opt-in methods to see which donors respond well to. Under current regulation, donors already have to opt in to SMS and email contacts.
The proposal to require “explicit consent” for profiling that could mean charities are unable to target donors or prospects based on the information known about them, which could mean the end of tailored communications.
Charities would have to seek permission from donors if they want to profile their data.
Explicit consent will also be required for tracking IP addresses, which would make web analytics and profiling harder, although charities will be able to prepare for the changes by implementing a procedure which collects consent and could be similar to the cookie law, which has not be as difficult to implement as many had feared.
Simon Burne, director of fundraising at the Children’s Society, said: “What terrifies me is the IP address proposal and what that will mean for digital recruitment.”
He said it was time to “galvanise the sector” and work with other interested bodies, such as the Direct Marketing Association, which has been lobbying against the proposals.
“People don’t like some of the things we do but we are trusted,” he said. “It would make life worse for our supporters and not better. If you want a personal experience with the charity you support some of these proposals will stop that happening.
“We need the Institute of Fundraising and others to drive home the fact that this is detrimental.”
The DMA and the IoF urged charities to respond to the proposals last year and the Institute has written to UK MEPs to raise concerns about their huge impact on fundraising.
Daniel Fluskey, head of policy and research at the IoF (pictured), said after the session that the Institute planned to put out guidance for members about the areas that are likely to be affected by the proposals.
But he said it was hard to give definitive advice as the current draft proposals are different to the original and could be subject to further changes.
