The single code of practice puts standards at the heart of fundraising, says Peter Lewis

The Institute of Fundraising’s (IoF) new single Code of Fundraising Practice for charities and voluntary organisations sets a high bar for the elimination of poor practice and increasing public confidence in charities. The new code, which replaces a confusing 28 codes, is underpinned by the four key principles: legal, open, honest and respectful.

The implementation of the code has resulted in clarifying the IoF’s role as the single code-setter for fundraisers, and placing it firmly at the heart of self-regulation in the sector. As IoF chief executive Peter Lewis explained, this is as a direct outcome of Lord Hodgson’s review of the Charities Act. “The development of the new Code of Fundraising Practice is a hugely significant move for the IoF,” he said. “Self-regulation in fundraising is a real success story in our sector, and the Codes of Fundraising Practice have been at the heart of that success for over 20 years. Our Standards Committee and the sector have committed a great deal of time and energy into refining the codes into one.”

Self-regulation

The principle of self-regulation will allow individuals and fundraising organisations to demonstrate best practice, eliminate poor practice and increase public trust and confidence in the voluntary and community sector. The Fundraising Standards Board (FRSB) is now empowered to act as an independent public complaints system for the self-regulatory scheme. It will base all its future judgements on the one code, and all fundraisers will be required to know their way around it. The code will continue to evolve, keeping up with changes and innovations in fundraising and legislation.

There are two key parts to self-regulation:

• The Code of Fundraising Practice contains the standards that the fundraising community sets through the work of the Institute of Fundraising’s Standards Committee, as well as offering legal guidance in key areas.
• The Fundraising Standards Board (FRSB) acts as an independent public complaints system for the self-regulatory scheme, licensing the scheme’s logo to its members and offering a system of redress for the public. Members of the FRSB scheme are required to adhere to the Code of Fundraising Practice.

Unequivocal support for the IoF code came from the Minister for Civil Society Nick Hurd, who spoke at the recent code launch event in Westminster. “Fundraising is the lifeblood of charitable work and an important way in which people can make a real difference to the things they care about the most,” he said. “The rules surrounding fundraising must, therefore, be responsive to the needs of charities and maintain the trust of the public. The Institute of Fundraising’s new Code of Fundraising Practice is much clearer and simpler, while remaining authoritative, and I welcome this important step forward in self-regulation”

Hurd added: “I’m absolutely delighted that the IoF had knocked heads together to bring the 28 codes into one. Let’s get it out there.”

Using the code

IoF members will be able to use the guidance to support their work in a number of ways. For example, if a charity wants to work with local schools, use digital media or start a face-to-face fundraising campaign, there is guidance on best practice and information and where to go for further support. The legal appendices cover areas such as trustees’ duties, fundraising in a public place and running raffles and lotteries.

The general principles of the code say, for example, that members must adhere to the legal principle that all funds raised for a particular cause are used for that cause alone, and comply with data protection law and the Charities Act. They go on to explain how fundraisers ought to treat individuals and organisations, such as not placing unreasonable pressure on donors.

Fundraisers are often the first and last contact many people have with a charity, and they carry an enormous duty to maintain the excellent reputation of all organisations working in the voluntary sector. The new Code is, therefore, at the heart of ensuring and maintaining best practice. As Peter Lewis said: “The IoF will now ensure that self-regulation continues to build and inspire long-term public trust and confidence in charities.”

Where to find the code

The new Code and guidance is online at www.institute-of-fundraising.org.uk/code

Peter Lewis is chief executive of the Institute of Fundraising

This article first appeared in The Fundraiser magazine, Issue 24, December 2012