Following three complaints over a 12-month period from long-term supporters, the Fundraising Regulator have recently concluded its investigation into poverty-relief charity Penny Appeal. The findings represent a useful reminder for all charities which fundraise.
The complaints made related to three main areas: donations made through a handful of specific appeals were not being utilised for the purposes intended, including the inaccurate recognition of donors’ intentions and the reallocating of funds to other areas without the notification or consent of the donors; providing misleading information about the length of commitment when setting up monthly Direct Debits; poor complaints handling.
The Regulator investigated the four appeals in question, examining the Charity’s website and website archives and reviewing language used in the appeals, and assessing the details provided on each appeal’s webpage and the associated FAQs.
Penny Appeal has agreed to comply with all recommendations made by the Regulator.
A series of Fundraising codes were found to have been breached, and a selection of the recommendations made are detailed below:
- Fundraising material must make clear from the outset who benefits from donations.
- Welcome packs’ and any subsequent update material sent to donors must make sure it remains clear how their donations are being used.
- Make it clear to donors that, due to the nature of charitable work within international development, there may come a time when the charity removes itself from sponsoring a project.
- As donors are likely to have an emotional investment in a specific appeal, clear information should be provided when funds are to be reallocated (within the restrictions of the appeal).
- Make it clear in fundraising literature when administration fees may be deducted by the charity or an appeal implementation partner.
- Three of the complainants involved in this investigation had asked the Charity for refunds of their donation, which the Charity had previously refused. The Regulator recommended that the Charity’s trustees consider whether to refund any of their donations and explain their considerations and decision to each complainant. A charity may wish to seek professional advice to assist them in reaching such a decision. If the trustees decide to make any payments to the complainants, depending on the rationale for their decision, they may need authorisation from the Charity Commission for England and Wales.
