Trustees’ management of fundraising should align with how they minimise fraud at their charity, the Charity Commission has urged.
The call comes after the regulator published its updated guidance on emergency appeals this week, alongside refreshed fundraising guidance published earlier this month.
Mazeda Alam, head of guidance and practice at the regulator, said in a blog that the regulator chose to refresh its guidance in response to the “ongoing challenging financial environment for many charities” and to better complement the separate role of the Fundraising Regulator.
“Both guides are now shorter reads, enabling trustees to understand core messages to improve their practice,” Alam said.
He said that the new fundraising guidance “explains how trustees’ management of fundraising should dovetail with how they minimise fraud at their charity and manage other risks”.
The guidance urges trustees to “be alert to fundraising fraud”, which could include theft from cash collections, fraudulent fundraising using the charity’s name or materials or phishing emails that look like they are from a charity asking for donations.
It adds that trustees must make sure they, alongside their charity’s staff and volunteers, know how to look out for suspicious donations, such as large, unexpected or anonymous ones; as well as how to report these to the right people.
The advice urges trustees to consider this risk in tandem with other potential fundraising hazards, such as not having the internal skills to run effective or compliance campaigns; investing in a campaign that is not as successful as hoped; or spending funds on a purpose for which they were not raised.
The fundraising guidance also covers key areas such as planning fundraising, supervising fundraisers and what to include in fundraising material.
Paul Winyard, head of policy at the Fundraising Regulator, welcomed the commission’s updated fundraising guidance, saying it would support trustees in “getting these essentials right, helping charities to benefit from public support while maintaining the trust and confidence in fundraising on which the sector depends”.
The regulator has also updated its emergency appeals guidance to recognise the “essential role” that charities play in emergency situations, Alam said.
But he urged trustees to understand what their charity could and could not do in these circumstances, whether delivering relief directly, fundraising or supporting in other ways.
“It is understandable to want to set up an appeal in the face of a crisis, disaster or other emergency, and it is easy to do this using online giving platforms,” Alam said.
“But the revised emergency appeals guidance sets out important considerations that will enable trustees to understand how they can help while also avoiding potential issues later.”
The updated emergency appeals guidance reminds trustees to check if their charity’s purpose enables it to raise funds in an emergency.
It also advises trustees to be clear and transparent about what they will use the funds for, while ensuring compliance with the law and Code of Fundraising Practice.
Simon Beresford, director of fundraising and marketing at the Disasters Emergency Committee, said the updated guidance provided “important clarity and support” to charities in the UK responding to humanitarian emergencies.
“This new guidance will help charities to respond as swiftly and efficiently as possible to humanitarian crises, whilst upholding high standards of accountability,” he said.