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The Fundraising Preference Scheme: How Will Your Charity Be Affected?

The proposed Fundraising Preference Scheme has been a hot topic of discussion among fundraisers across the charitable sector, and is now the subject of a paper produced by the Charity Commission working group tasked to consider the subject. The proposals have met with a mixed reception from fundraisers and, if implemented, will certainly affect the way supporter data is managed and fundraising campaigns are conducted. There is currently a consultation running on the details of the scheme until 31st March 2016. This blog briefly goes into the details of the proposals and how fundraising professionals may have to respond to its challenges.

What is the scheme?

A new Fundraising Preference Scheme was proposed in September 2015 as the basis of a new Fundraising Regulatory Body, to replace the current self-regulatory system. This followed a wave of criticism about some charities who were deemed to be overwhelming the public with aggressive and persistent fundraising methods. The preference scheme essentially offers members of the public a reset button, whereby they can opt out of all telephone, email and postal communication from any charity. Clearly these are far-reaching proposals and will involve considerable coordination and data management on the part of all charities who engage in fundraising.

What about existing donors?

At the moment the final details of the scheme are unclear, but the big question is the status of existing donors. As currently proposed, if a person opts into the Fundraising Preference Scheme, they will no longer be able to receive communications from any charity, including causes they currently support. Charities worry that this Draconian rule will prevent organisations from getting in touch with their legitimate supporters while having no effect on the ‘charity fatigue’ caused by unsolicited contacts. This is because the Fundraising Reference Scheme will only cover individuals, rather than households. So it isn’t clear whether the flow of unaddressed mail, collection bags and anonymous phone calls that so annoys some members of the public will be able to continue or not. Other critics have pointed out that the proposals unfairly target smaller charities with incomes of less than £1 million per year. These charities typically cannot afford broad brush advertising on TV, radio and on the web, and rely on unsolicited personal contacts to raise awareness of their cause. They have requested a dispensation for small charities to enable them to continue profile raising and campaigning activities.

How the scheme will be managed?

Ultimately, the details of the scheme are going to involve a fair number of compromises between the interests of charities and those of consumer groups. We can only hope that a fair and equitable position will be reached, whereby charities will be able to continue legitimate fundraising and marketing activities, but where members of the public are safeguarded from inappropriate cold calling. It is of course in the interests of both charities and donors that a fair decision is reached.

As with all other regulations, compliance will be the responsibility of the organisations themselves, and consequences for lack of compliance are likely to be broadcasted widely by the media. Charities will not be able to afford to muddle through and get the details wrong on this scheme. Supporter preferences will need to be recorded accurately and quickly to avoid any illegal communications slipping through the net.

The existence of a statutory Fundraising Preference Scheme, enforceable by law, will make effective contact relationship management even more crucial for every charitable organisation. Charities and voluntary organisations of all sizes will need access to a responsive CRM that can accurately record donor preferences and manage supporter relationships ethically and efficiently.