The spectre of over-regulation
When the Culture, Media and Sport Committee observed in its 2007 report on self-regulation of the press that because the 1991 system had failed to prevent certain ‘lapses’ in reporting methods, the image of the press was ‘again damaged as a result’, it did concede that ‘these failures to uphold standards, should not, however, be seen as signifying that self-regulation cannot work’.
Such leniency is unlikely to be bestowed on charities. The new professional fundraising and commercial participation rules that came into force on 1 April (see Catherine Rustomji, Checking the timetable ) and News review), leave no doubt that fundraising self-regulation must work if the sector wants to avoid the bleak prospect of statutory regulation. ‘The government accepted the Strategy Unit recommendation for self-regulation of fundraising, and has made provision in the Charities Act 2006 for statutory regulation should self-regulation fail’, states the OTS. We should assume it will be prepared to use it if necessary.
Some 15m households have signed up to the Telephone Preference Service (TPS) so far, and the last thing the sector needs is an equivalent in the form of some kind of overall Donation Preference Service. Also, fundraisers already have to ensure all electronic communications comply with the Privacy and Electronic Communications (EC Directive) Regulations 2003; any further handcuffing of donor acquisition channels would be disastrous. Negative publicity about ‘chuggers’ has not helped the image of face-toface fundraising, yet the Public Fundraising Regulatory Association reports this channel has attracted some 520,000 new supporters last year. It is a powerful tool; recent research from the Direct Marketing Association suggests that consumers want more control of how and when they gather information on what is being promoted, rating word of mouth as the preferred method.
Collectively the sector appears to have confidence in its fundraising standards but only 800 charities have signed up for the Fundraising Standards Board scheme so far. Jon Scourse, its CEO, commented in a recent speech: ‘donor goodwill cannot be taken for granted and the donor must be restored at the heart of the relationship and we must protect the common reservoir of public goodwill’, and Mick Aldridge, CEO of the PFRA, exhorts: ‘Let’s not wait for complainants to argue selfregulation has failed.’
No charity is too large or too small to take advantage of an opportunity to show it does not take donors for granted. So strategic plans (see page 31) should examine self-regulation as an opportunity, the prospect of further statutory regulation as a threat, and respond accordingly.
Clarissa Dann
cdann@caritasdata.co.uk
Author: Clarissa Dann
Clarissa Dann was the editor of Caritas as well as an HR and management online service,he People Bulletin until July 2011.
She is now the editor of the specialist trade finance magazine, Trade and Forfaiting Review which can be viewed at www.tfreview.com but does write on charity finance and investment from time to time.
Clarissa has a background in legal and professional publishing, as well as business journalism and holds an MBA from
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