The Fundraising Regulator has published new research and updated guidance to support compliance with the fundraising reporting requirements in the Charities (Protection and Social Investment) Act 2016 (the Act).
The Act requires charities in England and Wales with an income of over £1 million to provide statements on specific areas of their fundraising in their annual report, which is submitted to the Charity Commission for England and Wales.
In July 2022, we reviewed the annual reports of 198 charities with an income of over £1 million to provide a benchmark for the charity sector, highlight good practice, and identify areas for improvement in the reporting of fundraising activity. This follows previous research conducted in June 2020 and April 2019.
Whilst comparison between the three pieces of research is limited due to a differing scoring system, there are signs of improvement in reporting – though more action is required overall by charities to fully meet the requirements. In addition, we found that the sample charities which did not pay the levy were less likely to meet the requirements in comparison to levy-paying charities.
Overall, we found that of the levy-paying charities:
- only 33% of (47 of 144 reports) included a statement on each of the requirements a, b, d, e and f; and
- 9% (13 of 144) reported on none of the requirements.
Of the levy-refusing charities, overall:
- only 13% (5 of 38 reports) reported on all the requirements; and
- 32% (12 of 38) reported on none of the requirements.
For more detailed information, please refer to the research findings.
Charities with an income of below £1 million do not have a legal duty to meet these fundraising reporting requirements. However, we consider it good practice for all charities that produce an annual report to include these statements. This promotes openness and transparency and gives assurance to the reader that key issues, such as protecting vulnerable people, are being addressed.
We have updated our fundraising reporting requirements guidance to help charities to understand the importance of reporting on the requirements, alongside meeting their legal duties.