The chief executives of Acevo and NCVO have both urged politicians not to force the new regulator to report to a government body, following the publication of a critical report into fundraising practices.
The Public Administration and Constitutional Affairs Committee published its report this morning, which calls for the Charity Commission to have a greater role in overseeing the new regulator and for trustees to take responsibility for what happens at their charities.
Sir Stephen Bubb (pictured), chief exectutive of Acevo, said: “We are in danger of over-regulating charities and damaging good causes. The country’s top fundraising expert Adrian Sargeant says charities could lose as much as £2bn from regulatory reform, causing damage to organisations that the public cares deeply about such as cancer research and work with children.
“These proposals would bind charities with regulation far greater than that applied to PPI canvassers or market surveyors. We support reforms that stamp out bad practice, not over regulation.”
An Acevo statement added that: “Making the new Fundraising Regulator accountable to the Charity Commission means that charity self-regulation has effectively been thrown out of the window.” And that the holding of public hearings would “only add to an already onerous and sometimes intimidating burden on charities”.
Sir Stuart Etherington, chief executive of NCVO, said: “While the Charity Commission rightly has a role to play in ensuring that charities are well-governed generally, it is important that we do not lose sight of the principle of self-regulation in fundraising on which everyone is agreed. I am not persuaded for this reason that it is appropriate for the Fundraising Regulator to report to a government body.”
He suggested that the Fundraising Regulator should report to Parliament instead, something PACAC ruled out.
He said: “The Fundraising Regulator will also cover bodies other than charities, such as universities, which are not regulated by the Charity Commission.”
‘Trustees need to get a grip’
William Shawcross, chair of the Charity Commission, said: “Trustees must grip fundraising in their charities and have much better oversight of their charity’s activities. We will consider all of the committee’s recommendations and continue to assist with the creation of the new body that will oversee charity fundraising.”
Andrew Hind, chair of the FRSB, said: “We have already made it clear that the FRSB will seek to facilitate a smooth transition to the new Fundraising Regulator, and it is critical that charities remain committed to self-regulation and to supporting the FRSB during this transition period.”
Peter Lewis, chief executive of the Institute of Fundraising said: “The select committee’s report makes some helpful recommendations for ways to make sure that charity fundraising is carried out to the highest standards, particularly on the role of trustees and charity governance.
“The Institute of Fundraising and our members are committed to supporting and promoting the highest standards in fundraising and look forward to strengthening public trust working alongside the new Fundraising Regulator.“
Patrick Murray, head of policy and external affairs at the think tank New Philanthropy Capital, said: “It is simply not acceptable for boards to wash their hands of the ‘dark arts’ of raising money for charitable causes.
“The committee is right that this goes beyond rules and regulations. A change in culture is needed. We have suggested that all charities apply a ‘Gran Test’ when it decides how to fundraise, and ask themselves whether they would be comfortable with someone they love being on the receiving end of some of the sharper fundraising practices used.”
