Fundraising Regulator looks at widening levy or moving it to statutory basis

22 Jun 2017 News

The Fundraising Regulator has said it has to make changes to its fundraising levy after it failed to raise enough money in the first round - including making contributing to the levy a statutory requirement.

According to a document seen by Civil Society News, the Fundraising Regulator has ruled out continuing on with the fundraising levy as it is, and are considering making a number of changes to the basis of the levy moving forward. 

In a statement released this morning, Stephen Dunmore, chief executive of the Fundraising Regulator, confirmed that the regulator is considering moving to a stututory basis for the levy. 

He said: "We are currently reviewing the levy system to examine whether any changes could usefully be made in year 2. The levy calculations were based on information provided to the Charity Commission by charities and all too often this has proved to be inaccurate. The review is also considering whether there might be advantages in moving to a statutory levy in year 3."  

However a source familiar with the situation said it was highly unlikely the Fundraising Regulator would be able to change much about the levy before the second round of invoices are sent out to charities in August 2017.

The document lays out three options for securing funding in future, those being; the regulator charging charities based on a different set of criteria - moving away from using a "Costs of Generating Voluntary Income" basis to one based on the amount of voluntary income raised in a year - or widening the scope of the levy to capture more charities. 

Civil Society News understands that the regulator also considered charging charities contributing to the existing levy structure more, but decided against that option due to a wariness of angering the charities that are already paying. 

The document also discusses the possibility of the third round of levy invoices moving “onto a statutory basis”.

This has been confirmed in a statement from Dunmore, sent to Civil Society News today, which said: "We are currently reviewing the levy system to examine whether any changes could usefully be made in year 2. The review is considering whether there might be advantages in moving to a statutory levy in year 3. 

"We have been clear, as has the government, that fundraising regulation is not optional. Ministers hold reserve powers to impose both fundraising regulation and the levy on a statutory basis."

The statement can be read in full here

The Fundraising Regulator is expected to announce its budget for the next 12 months at an event on 6 July, to coincide with the launch of the new Fundraising Preference Service.

 

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