Following the publication of the Fundraising Standards Board’s latest complaints report, Alistair McLean urges all fundraisers to play their part in self-regulation
When the News of the World phone hacking scandal hit the headlines a few weeks ago, in a matter of days a 168-year old brand came crashing down and the paper closed. Trust in the media hit rock bottom as it was uncovered that the press had sunk to unimaginable depths in order to get the latest scoop in an increasingly competitive industry. Hot on the heels of the MP expenses scandal and the near collapse of the nation’s biggest banks, the fragility of even the most substantive businesses is apparent when faced with such large scale loss of confidence.
Charities currently benefit from a level of high public trust, coming third in line behind medical professionals and the police. And yet, recent research from nfpSynergy suggests that levels of trust are falling alongside a sharp drop in donations over the past year, as shown by the latest Charity Market Monitor.[1] The calamitous impact of loss of public confidence, in the banking industry, public sector and now the press and police service too, demonstrates just how important it is to maintain and build trust. So how can fundraisers build trust in order to sustain giving levels in a time of continued economic uncertainty?
Professional community
Five years ago, the sector introduced self-regulation with the formation of the Fundraising Standards Board (FRSB). The concept was to provide a platform for charities and suppliers to demonstrate their commitment to best practice in fundraising to their supporters and prospects. If a scandal were to hit the headlines, FRSB members could set themselves apart and quickly demonstrate the standards they uphold, with verification from an entirely independent body.
This type of regulatory framework is by no means unique to the sector. Doctors, lawyers and journalists, amongst many other professions, also adhere to a voluntary self-regulatory scheme and to professional codes of practice. But in practical terms, what does self-regulation mean for fundraisers?
Essentially, responsibility for the regulation of fundraising lies with the sector itself and with each fundraiser. Charities and suppliers must choose to opt in to regulation and all it entails. This might mean establishing more rigorous complaint handling processes or raising their game in practicing fundraising at the highest level. For some, it is a cultural change for the whole organisation and for others it is simply a case of being able to demonstrate their high standards and commitment to supporters by gaining access to the FRSB’s ‘give with confidence’ kitemark, for example.
Progress from within
The 2010 complaints report, published by the FRSB this June, revealed that 18,442 complaints were recorded by our members on the back of 3.9 billion asks. Direct mail drew the highest number of complaints. And data issues, such as poor data and data protection, has emerged as a common thread linking complaints across the various techniques and accounting for more than one sixth of all complaints. Without self-regulation to pick up on these issues, monitoring and improving best practice would be near impossible.
The report also found that approximately 2,000 complaints were attributed to poor data, for example incorrectly addressed or deceased recipients, being used in direct mail and telephone fundraising. A further 1,200 complaints were recorded about data protection. In fact, data protection contributes more than three quarters (76 per cent) of all email complaints, compared to just 6 per cent of direct mail complaints, demonstrating the need for fundraisers to exercise caution when emailing donors and potential supporters. Fundraisers must strive to source and maintain better data, and to make timely and appropriate use of it. Audit your database and use the opportunity to engage with donors. Find out what they want or what they think about the charity and let them know what is happening at the charity.
While some organisations could doubtless do better, complaint levels are largely reassuring. For each fundraising method, it typically takes between 1,000 and 10,000 asks to incur a complaint. As a measure of customer service, this is pretty good.
As opposed to statutory regulation where law dictates what can and cannot be done, self-regulation recognises that fundraising is a varied and innovative discipline, and that what is acceptable is subjective. The messages and tone used by one charity might differ greatly from what is advisable for another. Techniques are wide-ranging as are the profile of donors and funders that support them. As such, fundraising performance is judged against the sector’s own criteria for best practice; the Institute of Fundraising’s Codes of Fundraising Practice and the FRSB’s Fundraising Promise.
The Fundraising Promise is a public commitment by fundraisers to raise money honestly, openly and respectfully. As an independent body for complainants to go through, the FRSB enables charities to demonstrate accountability and transparency to their supporters. The public expects increasingly high standards from charities and this means a real commitment to donors as well as beneficiaries.
To date, more than 1,300 organisations have signed up to the scheme and 41 per cent of all voluntary income in the UK is raised by or for members. Every fundraiser, supplier and associated party must understand the obligations of self-regulation and how to communicate what it means to their supporters.
In your hands
Self-regulation is what you make of it. It is down to each organisation to opt in to the scheme, to every fundraiser on every campaign to practice high standards, to promote their involvement to supporters and to have a robust complaint process in place. It is not a quick fix, but a real commitment. By taking part in self-regulation and demonstrating consistent high standards, every fundraiser plays a key role in protecting the sector.
To maximise the benefits of self-regulation, fundraisers must commit to the scheme, to excellence in fundraising and in transparency with donors. Access to the ‘give with confidence’ branding is particularly effective at building confidence when used on donation forms, online giving pages, mailings and advertising, as is highlighting FRSB membership on funding application forms and in pitch presentations. Increasingly, trusts and foundations expect applicants to be members of the scheme and it’s a requirement for some. They want to know that the organisation they are supporting is accountable for their actions and that there is an independent body to go to if things go wrong.
The FRSB provides complaint handling support and resources, stepping in to resolve issues where the charity’s response did not satisfy the complainant. With the input of its members, the FRSB is able to monitor complaints each year, analyse trends and determine what issues concern donors. This donor intelligence is then fed back to fundraisers to help inform and guide future fundraising campaigns.
Voluntary donations are heavily reliant upon trust, donors and funders want assurances and, through self-regulation, the sector has an answer.
References:
[1] Pharoah, C., 2011. Charity Market Monitor 2011, London, Caritas Data
Alistair McLean is chief executive of the Fundraising Standards Board
This article first appeared in The Fundraiser magazine, Issue 8, August 2011
