# ECNL publishes review of global fundraising self-regulation - Link: https://fundraising.co.uk/2019/11/19/ecnl-publishes-review-of-global-fundraising-self-regulation/ - Published: 2019-11-19T10:53:20+00:00 - Author: Melanie May **Organisations involved in the self-regulation of fundraising should rethink systems of accountability to be more accountable to beneficiaries, a review on global fundraising self-regulation commissioned by the European Center for Not-for-Profit Law (ECNL) has recommended.** The [new report](http://ecnl.org/mapping-trends-and-principles-of-self-regulation-regimes-on-fundraising/) from [ECNL](http://ecnl.org/) and co-authored by [Rogare](https://www.rogare.net)’ s director Ian MacQuillin with Adrian Sargeant and Harriet Day at the [Philanthropy Centre](https://www.philanthropy-centre.org), looks into the literature and practice of self-regulation regimes with a focus on fundraising principles, and considers academic models of accountability in non-profit self-regulation. With limited academic attention and available data on fundraising self-regulation to date, the review aims to fill this gap. It finds many models are based on ‘Principal-Agent’ theory, which sees the regulator body act as the agent of the principal to ensure the intentions are adhered to. In the case of fundraising self-regulation, the principal is the donor. ## Advertisement However, while this means self-regulation is often good at accountability to donors and governments, it means that because beneficiaries lack similar power to make demands of NGOs, there is often a poor level of accountability to them. The report concludes that beneficiaries are owed a high degree of moral accountability, and that it is their interests that should take precedence. It states: > “We recommend that all involved in fundraising regulation should review their > accountability processes, but more than this, rethink what kinds of accountability > they owe their various stakeholders, based on the theory and scholarship we have > described in this report. We particularly recommend devising a model for beneficiary > accountability in fundraising self-regulation.” Among its other recommendations, the report also suggests considering how the PFRA- model of self-regulating – a so-called ‘common pool resource’ in the context of face-to-face fundraising – could be adapted and applied to other methods of fundraising, and that all self-regulation of fundraising should comply with the five principles of good regulation as set out by the UK Government’s Better Regulation Task Force. These are: * Proportionality – regulators should intervene only when necessary. Remedies should be appropriate to the risk posed, and costs identified and minimised. * Accountability – regulators should be able to justify decisions and be subject to public scrutiny * Consistency – government rules and standards must be joined up and implemented fairly * Transparency – regulators should be open, and keep regulations simple and user- friendly * Targeted – regulation should be focused on type problem and minimise side effects. Lead author on the report, Ian MacQuillin said: > “Self-regulation is not just a matter of a professional body writing a code of > practice. These days, the government is never far from the mix and is often a > driving force in the background. We now have systems of co-regulation where all > sorts of actors – such as ratings agencies and information services – are part > of the regulatory mix. > “But those actors are often most focused on protecting donors’ interest. We see > this so often with the arbitrary upper limit on admin costs that are – or have > been – part of many countries’ standards. > “And while there may be many ‘prudential’ reasons why self-regulatory bodies think > their primary accountability is upwards to donors and the public, there is plenty > of scholarship that argues for a downward moral accountability to beneficiaries, > to ensure they are not harmed by unnecessarily restrictive regulation_.”_ The [full report](http://ecnl.org/mapping-trends-and-principles-of-self-regulation-regimes-on-fundraising/) can be accessed on the ECNL site. * **[Charity Commission publishes summaries of Charities Act changes due this autumn](https://fundraising.co.uk/2022/10/17/charity-commission-publishes-summaries-of-charities-act-changes-due-this-autumn/)**( 17 October 2022) * **[Third set of changes to Charities Act 2022 come into force](https://fundraising.co.uk/2024/03/08/third-set-of-changes-to-charities-act-2022-come-into-force/)**( 8 March 2024) * **[Fundraising Regulator reports 97% of increased levy on charities has been paid](https://fundraising.co.uk/2025/02/06/fundraising-regulator-reports-97-of-increased-levy-on-charities-has-been-paid/)**( 6 February 2025) ![Loading](https://fundraising.co.uk/wp-content/plugins/page-views-count/ajax-loader- 2x.gif)