Fundraising Regulator publishes proposals on levy & registration fees
Melanie May | 24 June 2016 | News
Charities may have to pay up to £10,000 a year under proposals published this week by the Fundraising Regulator on its levy and registration fees.
In the document, the Fundraising Regulator proposes a levy on fundraising expenditure, applying to organisations reporting annual fundraising expenditure of £100,000 or more to generate donations from the public. It also proposes that the levy should be applied on a sliding scale requiring organisations with high fundraising expenditure, and so higher contact volumes with donors, to contribute more.
The Regulator’s preferred way forward is a smooth banded levy consisting of eight tiers of payment based on actual fundraising spend. Under this proposal, charities spending more than £20m a year would pay £10,000 in an annual levy, falling to £6,000 for those spending £5m-£20m, £4,000 for those spending £2m-£5m, £3,000 for those spending £1m-£2m, £1,500 for those spending £500k-£1m, £800 for those spending £200k-£500k, £300 for those spending £150k-£200k, and £250 for those spending £100-£150k.
According to the proposal document, this arrangement is “the most straightforward and transparent and seeks proportionate contributions from charities in the levy arrangement.” This would see some 2,000 charities pay the levy.
A smaller number (150) of exempt charities that also raise voluntary income through donations from the public will also have to pay a levy of £1,500. These are organisations which are charitable but are regulated by another body, such as English universities and national museums and galleries.
The Regulator proposes that the levy be set for 2 years and 8 months from 1 August 2016 – 31 March 2019, and that it will be based on the annual return and audited accounts submitted to the Charity Commission to avoid any extra work on the part of charities, and to discourage organisations from seeking to evade a higher levy.
In addition, the Regulator proposes a flat registration fee of £50 per charity, and £250 for fundraising agencies.
The Regulator is seeking responses to its proposals and is particularly interested in comments on the following questions:
- Whether £100,000 is the right threshold to set the levy?
- Whether option 1 (the preferred option) for setting the levy is the best option?
- Whether the proposed banding is right and whether the highest and lowest rates for the levy are appropriate?
- Whether there are any other issues in setting the levy for just under 3 years in the first instance, the period 1 August 2016 – 31 March 2019, not already covered?
- Are the proposals for flat rate charges set at the right levels?
The consultation is open until Friday 22nd July, and comments must be send by email to le**@fu******************.uk, or by post to The Fundraising Regulator, c/o Charities Aid Foundation, 1st Floor, 10 St Bride Street, London EC4A 4AD (marked Levy and Registration).
More information, including the proposal document is available on the Fundraising Regulator site.
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About Melanie May
Melanie May is a journalist and copywriter specialising in writing both for and about the charity and marketing services sectors since 2001. She can be reached via thepurplepim.com.