Guidance for charitable institutions working with professional fundraisers

Charitable institutions must carry out appropriate due diligence before entering a relationship with a professional fundraiser and ensure that any conflicts of interest are appropriately addressed.  

Charitable institutions must have a written agreement with any professional fundraiser they work with, and this agreement must be signed by the charitable institution and the professional fundraiser. This agreement must be in place before a professional fundraiser starts raising funds for the charitable institution. 

The written agreement must include:  

• the names and addresses of the charitable institution and the professional fundraiser  
• the date the agreement was signed and how long the agreement is expected to last for 
• if the agreement can be amended or ended early, details as to how this can be done and by whom 
• a statement of the main aims of the agreement and the methods to be used to achieve those aims; and 
• how much the professional fundraiser will be paid or is entitled to claim in expenses and the method by which that amount will be calculated.  

If the professional fundraiser is raising funds on behalf of a number of charitable institutions under the same agreement, the agreement must be signed by and include the names and addresses of all of the charitable institutions. It must also include details of how the donations will be shared between the charitable institutions. 

If the agreement involves charitable institutions registered in England and Wales, it must also include:  

• details of any voluntary regulation that the professional fundraiser has agreed to be bound by (for example, being registered with the Fundraising Regulator and so being bound by the code) 
• details of how the professional fundraiser will protect people in vulnerable circumstances and the wider public from unreasonable intrusion on their privacy, unreasonably persistent approaches or undue pressure to donate; and  
• details of how the charitable institution will monitor the professional fundraiser to make sure it is keeping to the agreement.  

Although not strictly a requirement in Scotland, it would be considered good practice to include the above in the agreement.  

Charitable institutions must monitor professional fundraisers to ensure that they are complying with the terms of the written agreement for so long as the agreement lasts. Charitable institutions must also make sure that professional fundraisers comply with the code. 

If you are a charitable institution in England and Wales with an income of over £1 million, you must also comply with certain reporting requirements regarding your relationships with professional fundraisers. For further details, please see our Fundraising reporting requirements guidance. 

The written agreement between the charitable institution and the professional fundraiser must be in place before the professional fundraiser begins work. It is unlawful for a professional fundraiser to raise funds for a charitable institution without a signed written agreement being in place. The relevant charitable institution may apply for an injunction to stop any such fundraising should this occur.  

Solicitation statements are statements that professional fundraisers must give whenever they ask for money on behalf of a charitable institution. These statements should be given before the donor gives any money or before the fundraiser asks for any financial details relating to the transaction (whichever is sooner). 

These statements must outline the relationship between the professional fundraiser and the charitable institution they are fundraising for and explain how the professional fundraiser and the charitable institution will benefit from the arrangement. Solicitation statements can be given verbally or in writing.  

Solicitation statements in England, Wales and Scotland must include: 

• the name of the charitable institution 
• if there is more than one charitable institution, details of how funds will be shared between them 
• how the professional fundraiser’s payment will be calculated; and 
• how much the professional fundraiser will be paid for the appeal (estimated if necessary). 

Where a professional fundraiser asks for a donation verbally without the potential donor being physically present (such as in telephone fundraising) the professional fundraiser must, within seven days of the donor making a payment or entering into an agreement to make a payment of £100 or more, give that person a written solicitation statement which also explains that the person can:  

• cancel the agreement (if relevant) by written notice to the professional fundraiser within seven days of receiving the written statement; and  
• request a refund (if the payment has been made) by written notice to the professional fundraiser within seven days of receiving the written statement.  

When a request for donations is made during a radio or television appeal, a person making a payment of more than £100 can cancel their payment by giving notice in writing up to seven days after the date on which the request is made. The professional fundraiser will then need to refund the payment. The solicitation statement which accompanies the radio or television programme must include details of this right. It is also good practice to extend these rights to any requests for donations which are made via video, e.g. on social media. 

In Scotland, if a solicitation statement is made verbally the professional fundraiser must inform the donor that this information is available in writing upon request, regardless of the donation amount and whether the donor is present.  

Professional fundraisers should consider – and if necessary, take advice – as to the form their solicitation statement needs to take. In England and Wales, the Cabinet Office: Guidance on Part 2 of the Charities Act 1992 includes examples of solicitation statement in Annex B. In Scotland, professional fundraisers should refer to OSCR’s Technical Guide on the Charities and Benevolent Fundraising (Scotland) Regulations 2009 

Where the professional fundraiser (individual) is making the fundraising ask directly, solicitation statements could take the following forms:  

“I am fundraising on behalf of [charitable institution]. I will be paid [£x] by [charitable institution] for every donor that I recruit during this campaign. It is estimated that I will be paid [£x] for my work on this campaign.”  

“I am fundraising on behalf of [charitable institution]. I am being paid an hourly rate of [£x]. I estimate that I will be paid approximately [£x] for my work this year.” 

Where the fundraiser making the fundraising ask is an employee of a professional fundraiser (company), solicitation statements could take the following forms: 

“I work for [professional fundraising company] and we are fundraising on behalf of [charitable institution]. My organisation is being paid [£x] to sign up supporters to make regular donations to [charitable institution]. This fee was calculated by [method].” 

“I work for [professional fundraising company] and we are fundraising on behalf of [charitable institution 1] and [charitable institution 2]. My organisation is being paid [£x] to recruit supporters to make regular donations to these charitable institutions. This fee was determined by [method]. Money raised through this campaign will be shared equally between the two charities.”  

Professional fundraisers must monitor their activities and the conduct of its employees in accordance with the written agreement. 

Professional fundraisers must report to the charitable institution in accordance with the written agreement. 

Professional fundraisers must, on request and at all reasonable times, make available to the charitable institution any books, documents or other records (however kept) which relate to the charitable institution and are kept for the purposes of the written agreement.  

If professional fundraisers receive money or cheques which is payable to the charitable institution, they must pay these to the charitable institution as soon as possible and within 28 days of receipt. (In England and Wales, they may pass on funds after 28 days if this has been agreed with the charitable institution).