The Fundraising Regulator has today (17 April 2024) announced it is to increase the fundraising levy (the levy) and registration fee following a sector focused review.
The levy constitutes the majority of the Fundraising Regulator’s funding and sees charities that spend over £100,000 on their annual fundraising activity pay a voluntary contribution to fund the Regulator’s services. The levy has always and will continue to represent a small fraction of a percentage of a registered charity’s total fundraising expenditure.
Prior to implementing changes, the Fundraising Regulator sought views from people within charitable fundraising organisations who are responsible for paying the Levy or maintaining registration with the Regulator. 222 responses were received. Taking the responses into consideration the Board agreed that the proposed changes will take effect over two years to mitigate the impact of the increase. Following the staggered increases in September 2024 and September 2025, further increases will be tied to the Consumer Price Index (CPI) to ensure they are more gradual, with charities given advance notice before rises come into effect. In September the registration fee for charities outside the levy will also increase from £50 to £60.
Commenting on the launch of the Fundraising Levy review, Lord Toby Harris, the Chair of the Fundraising Regulator, said:
“In December 2023 we consulted the sector to seek responses to our proposed changes to the fundraising levy. Taking into account the responses received we agreed that whilst the levy will have to go up for the first time in eight years, the proposed increases will be phased in over two years (in September 2024 and September 2025).”
“We are committed to supporting charities in this rapidly evolving sector, and tackling the emerging issues that affect public trust in fundraising. Simply put, it is the levy that enables us to do this and to continue doing it effectively in the shared interests of charities and the generous public so that there is a continuing positive environment for fundraising to prosper.”