Charity Fundraising Regulation, Risks & Insurance FOO
The term fundraising is used across a broad range of activities within the sector. Whether it’s online sponsorship, monthly payroll or other forms of monthly/repeat giving, or holding events to raise funds: there are risks within each that will vary by charity.
Some charities also have Local Groups, Friends of, Branches and a myriad of other titles that represent parts of the charity potentially one step removed from the centre. This results in there being less control and potentially less understanding about risk management at a local level – which can come back to ‘bite’ the charity as a whole.
Whichever term you use given that fundraising income for the top 100 fundraising charities rose to £9.5bn in the year to March 2015 according to ‘Top 100 Fundraising Charities Spotlight’ published by Charity Financials, and the Institute of Fundraising estimates that 28.4m people give to charity in a typical month: this is clearly a vitally important area for the sector.
In addition, following a media campaign alleging that the sector (often using professional fundraising private companies rather than the charities own staff) targeted vulnerable members of public and a subsequent series of complaints from the public made to the then fundraising regulator concerning only a handful of charities, the whole landscape of fundraising as well as its regulation within the sector has changed.
This bulletin considers the turmoil, the current state of regulation, and how risk management could and can help charities protect their reputation and assets. We also consider the operational risk management of events and look at what insurance solutions are available.