# The implications of changing EU Data regulations for UK charities

- Link: https://fundraising.co.uk/2012/03/06/implications-changing-eu-data-regulations-uk-charities/
- Published: 2012-03-06T10:31:43+00:00
- Author: Howard Lake

The recent release of the European Commission’s draft data protection bill is set
to shake up the way in which not just charities but all organisations gather, store
and use consumer data. Given the technological advances and changes in consumer 
behaviour the current 1998 Data Protection Act is patently no longer robust enough–
a lot can happen in 14 years.

### The right to be forgotten

Despite the fact that it won’t come into effect for another two years, already one
of the biggest talking points of the new bill is the introduction of the consumer’s“**
right to be forgotten**”. This is a snappy term which essentially places still further
control in the hands of the increasingly data-savvy man on the street regarding 
how long an organisation can keep hold of his individual data. While especially 
pertinent this aspect seems seemingly targeted at social media platforms, an increasingly
important engagement channel for many in the third sector.

However, the right to be forgotten also strikes at the heart of many charities’ **
lapsed donor re-engagement programmes**, and places still further emphasis on getting
the message right, conveyed in the right way, and received at the right time. If
not carefully handled, ill-targeted or ill-timed communications activity could leave
many charities with much depleted previous donor databases as individuals merely
close the door to their data being kept. This in turn brings its own implications
for further data screening when conducting acquisition campaigns to avoid charities
falling foul of major fines.

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### Minimise the amount of personal data collected

Another interesting and undefined area of the draft data bill is the “explicit requirement”
to minimise the amount of personal data collected. Opinion on **how much data it
is acceptable to hold on consumers** will vary greatly from organisation to organisation
and industry to industry. After all, in retail, it is now common practice to use
detailed purchase history to guide future marketing communications, from picking
up a pint of milk on the commute home to a mammoth pre-Christmas stock up of the
larder.

While it’s argued that these measures are primarily aimed at controlling data collected
via social media platforms, it has wider reaching implications than that and will
cause much confusion when it comes to data specialists within the charity space.
Added to this is the new ‘explicit consent’ required when capturing personal information–
again, a term open to interpretation and already difficult to manage across multiple
channels and touchpoints, particularly for the smaller charity with limited funds
available.

### Effective data cleansing

It is a common perception within the DM industry that charities can sometimes be
caught lacking when it comes to best practice in data. Direct marketing is perhaps
the most important messaging channel within this space as it allows charities to
accurately target the consumers most likely to have an affinity with the specific
cause and ensure communication is relevant. To achieve this, **effective and rigorous
data cleansing is crucial** in avoiding consumer dissatisfaction, as unwanted or
irrelevant direct marketing communications are a sure fire way to alienate your 
potential audience. Charities should be applauded for the close relationships they
manage to forge with supporters, but a consumer’s rights should never be lost amongst
the perpetual drive for donations.

The importance of data to charities cannot be underestimated – given the significance
of direct mail within the sector, without a heavily populated and regularly updated
CRM system the marketing function within any medium to large sized charity would
fail to function, and that’s not to mention those that are too small to justify 
such a system. This is why **understanding the impact of the new data protection
bill is essential for data collectors within the sector**. With budgets tight and
every penny counting, data governance can often find itself pushed down the list
of priorities for charities, but effective data management is an essential process
for any charitable organisation.

The upshot of many of these incoming regulatory changes is that many charities will
find keeping all donor and prospect information in a single repository the path 
of least resistance. A nimble single customer view database, updated at the point
of each individual’s contact with the organisation, while labour intensive should
provide the peace of mind that changing contact preferences are being kept in mind.

### In-house or outsourced

Depending on the size of the charity, the task of data management can be done via
an in-house role or team, but yet we still rarely see data specialists working in-
house at charities as budgets often won’t allow. For larger organisations, and the
larger budgets that they boast, outsourcing to a specialist data bureau is likely
to be the preferred route. For this sector more than any other, online data cleaning
tools are a cost-effective solution, but the results are often mixed and when mistakes
are made you risk alienating a potential donor – the worst case scenario for any
organisation.

### Time to plan

The new EU data bill, however, could actually be seen as a welcome incentive to 
help improve the situation. It will force organisations to get their databases up
to scratch and ensure marketing activity is at its optimum efficiency. It should
encourage charities to reassess budget allocation and ensure the data at the heart
of their operations are used more effectively. An essential step to prepare for 
any changes on the horizon regarding this bill will be existing communications strategies
to encourage opt-in to multichannel campaign touchpoints, specifically cost-effective
email contact, as well as the more traditional routes.

For the vast majority of charities, direct marketing more than any other medium 
is essential in driving donations. Even though they are two years off at this stage,
the tighter regulations introduced by the new data protection bill ensure that it’s
time for everyone to get their houses in order and seriously consider how it will
impact their marketing strategies at this stage. There is, after all, still time
for concerned voices to air their views at the consultation stage.

**Charles Ping is strategy director at [Communisis](http://www.communisis.com), 
a Marketing Services Provider specialising in effective and relevant customer communications
through the better use of data and technology**.

 * **[New series of free Data Protection webinars announced](https://fundraising.co.uk/2012/09/12/new-series-free-data-protection-webinars-announced/)**(
   12 September 2012)
 * **[New agreement on Irish charity data to be revealed at conference](https://fundraising.co.uk/2015/01/26/new-agreement-irish-charity-data-revealed-conference/)**(
   26 January 2015)
 * **[10 tips for Spring cleaning your donor data](https://fundraising.co.uk/2015/04/08/10-tips-for-spring-cleaning-your-donor-data/)**(
   8 April 2015)
