The government will legislate to restrict how charities raise funds from vulnerable people and has asked Sir Stuart Etherington to conduct a review of self-regulation, according to a statement released today.
“New legislation to protect the vulnerable from aggressive fundraisers and rogue charities will be announced by the government next week,” a statement released by the Cabinet Office said.
The statement also said that Sir Stuart Etherington, chief executive of NCVO, has been asked by Rob Wilson, minister for civil society, to lead a review group to assess the effectiveness of self-regulation and decide whether further powers need to be introduced in the bill. The review will report back by mid-September.
The move follows a series of critical articles in the Daily Mail, which last week said it had exposed attempts by fundraising agency GoGen to target people with dementia to persuade them to give to charities including Oxfam, the NSPCC, Macmillan Cancer Support and the British Red Cross.
According to the statement new rules will be introduced in the Charities (Protection and Social Investment) Bill, which is currently at committee stage in the House of Lords.
The new rules will say that charities with incomes over £1m will have to set out their fundraising approach in their annual report and accounts, including “the use of professional fundraising agencies” and “steps to prevent inappropriate fundraising from vulnerable people”.
“The legislation will also require all professional fundraisers to set out in their agreements with charities what steps they are taking to protect vulnerable people from high-pressure tactics and how the charities will monitor compliance,” the statement said.
Prime Minister says fundraisers damage charities
David Cameron, the Prime Minister, said in a separate statement today that some fundraisers were damaging the reputation of charities.
"Our charities undertake vital work, bringing communities together and providing support to some of the most vulnerable members of our society,” he said.
"But the conduct of some fundraisers used by them is frankly unacceptable and damages the reputation of the sector as a whole, which is why we're introducing a new law to make sure charities raise funds in the right sort of way."
Etherington review to report back in September
Etherington has explained in a blog on the NCVO website why he has agreed to chair a review.
“For the media, Parliament and the wider public, charities are very much in the dock,” he wrote. “This has frankly been a terrible week in media terms. Investigations, indeed revelations, of poor or aggressive fundraising calls have shocked not just the public, but also many people who work for charities.
“It is not simply enough to blame sections of the media: senior journalists in newspapers traditionally supportive of charities tell us that their postbags are full of complaints about fundraising.
“As a sector, we need to take action so that the public retain their confidence in us.”
The review will have representations from all political parties and will look at regulation in other sectors, the needs of vulnerable people, and the needs of the sector itself, he said. Terms of reference will be published shortly.
“A review in and of itself will not lead to change,” Etherington said. “We will need to make clear recommendations, with a timetable for implementation, and those recommendations will need the support of fundraising charities in particular.
“My judgement is that this is an opportunity for charities to show leadership and to demonstrate to the public that they can put their own house in order, so I would urge all those with an interest to engage with the review.
“Finally, I wish to be clear that charity fundraising has never been more important. Many charities are in a tight financial position, still dealing with the increased demand for their services prompted by the economic downturn of recent years.
“This is why it is particularly crucial that we get fundraising right. We cannot afford to jeopardise charities’ fundraising now or in the future. We must find sustainable solutions that can ensure the public continues to have faith in charities in the long term – that is what I aim to do.”
