The Fundraising Regulator today published full proposals for its Fundraising Preference Service, including some new measures likely to please fundraisers. We summarise the main points.

The Fundraising Preference Service proposals published for consultation today differ in several points to the draft put forward earlier this year. There are now time limits in operation, and a “small red button” to allow more limited opt-outs. Rules are tighter around who can opt out a vulnerable person.

But it is likely to apply to more charities – all those spending over £100,000 a year, compared to an initial proposal that only those spending over £1m might be affected.

Below are the main elements from the report. 

Scope

Registration with the FPS should apply only to fundraising communications, and accordingly should not prevent other forms of communication.

The majority of respondents indicated that communications about lotteries and raffles should be viewed as fundraising communications. Most felt trading communications should not be included. Opinion was split over hybrid communications such as newsletters and campaign updates.

It will be for the Fundraising Regulator to decide how restrictive or otherwise the definition of ‘fundraising communication’ should be, and how it will interpret this concept in practice.

Channels

The FPS should be based on individual entities rather than households, although some overlap has to be accepted in relation to landline telephony.

FPS will apply to individuals and across the main channels of communication: addressed mail, telephones (landlines and mobiles), email and SMS.

User choice

To stop phone calls, FPS will signpost to the Telephone Preference Service. To stop junk mail, the site would signpost to the Mail Preference Service.

To stop a named charity or charities from contacting them, there would be a ‘small red button’ to allow the user to specify the charity or charities they do not want to hear from. This would be a targeted response to meet the user’s wishes.

To stop receiving all communications where the core purpose is fundraising, there would be a ‘large red button’ to be a full re-set.

Charities and other organisations with an existing fundraising relationship with someone registering on the FPS should have the opportunity to make contact to clarify if the registration is intended to cover them in the light of the direct, existing relationship.

The opportunity to use this should be limited to organisations that have received a donation from that individual over the past 24 months.

Duration

Registration on the FPS should be time-capped, and expire after two years. The FPS provider would be responsible for sending a communication three months before expiry, asking the individual to refresh and therefore confirm the registration for another two years.

Application

Only fundraising organisations spending £100,000 or more a year should be required to come within the scope of the FPS. Smaller organisations can choose to sign up.

The Fundraising Regulator should include compliance with the FPS as a requirement of the Code of Fundraising Practice.

Vulnerable individuals

Registration by a third party of vulnerable individuals should only be allowed where that third party has the necessary Power of Attorney or equivalent.

Cost and implementation

The implementation will be outsourced and will not be put out to tender. As a result, the FPS could be up and running within six months.

In the first year costs of set up and delivery of the FPS might be in the region of £750,000 plus the variable staffing cost of call centre personnel and the management of a subscription arrangement with over 1,000 fundraisers. Year two fixed costs would be likely to fall considerably.

How the FPS will be funded is still to be decided. Charities could pay an annual subscription to use its services to check their campaigns, additional to the Fundraising Levy. This could be around £3,000 to £4,000 a year, with lower rates for smaller organisations.