In response to the recent bad publicity surrounding charity fundraising, new disclosure requirements concerning fundraising for charities subject to audit have been introduced for charity accounts reporting periods beginning on or after 1 November 2016.

Bishop Fleming's Mark Birchenough explains the rules.

These requirements were introduced by the Charities (Protection and Social Investment) Act 2016 and the detail of what needs to be disclosed is available from Charity Commission Guidance CC15d.

Section 7.9 of this guidance is as follows:

Information on fundraising practices that auditable charities must disclose

All auditable charities that raise funds from the public must provide the following information in their trustees’ annual report for financial years beginning on or after 1 November 2016:

  • the fundraising approach taken by the charity, or by anyone acting on its behalf, and whether a professional fundraiser or commercial participator carried out any fundraising activities
  • details of any fundraising standards or scheme for fundraising regulation that the charity has voluntarily subscribed to
  • details of any fundraising standards or scheme for fundraising regulation that any person acting on behalf of the charity has voluntarily subscribed to
  • details of any failure by the charity, or by any person acting on its behalf, to comply with fundraising standards or scheme for fundraising regulation that the charity or the person acting on its behalf has voluntarily subscribed to
  • whether the charity monitored the fundraising activities of any person acting on its behalf and, if so, how it did so
  • the number of complaints received by the charity, or by a person acting on its behalf for the purposes of fundraising, about fundraising activity
  • what the charity has done to protect vulnerable people and other members of the public from behaviour which:
  • is an unreasonable intrusion on a person’s privacy
  • is unreasonably persistent
  • places undue pressure on a person to give money or other property”

Early adoption of these disclosures is permitted and one of my clients has already included this information in its trustees’ report for the year ended 31 March 2017.

If you have a charity that raises funds from the public you should ensure that the relevant disclosures are made in the trustees’ report from the required date. For some charities, introducing a system for gathering the information may be useful.

If you would like further information on any of the above please feel free to contact your local Bishop Fleming advisor.

 
 
 
 
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