Just four in ten charities included a statement on how fundraising carried out on their behalf is monitored in their annual report, the Fundraising Regulator has reported.
The Fundraising Regulator has published the results of its latest review into how well charities are complying with the fundraising reporting requirements in Section 13 of the Charities (Protection and Social Investment) Act 2016.
It is a legal requirement under the Act for charities registered in England and Wales with a gross income of over £1 million to include statements on their fundraising activities in their annual report, including the approach taken, regulation, complaint numbers and how they ensure vulnerable people are protected, as well as monitoring third-party fundraising.
The Regulator’s review assessed a sample of 187 charity annual reports against the six fundraising reporting requirements in the Act and found that charities are complying in some areas, with improvements necessary in others.
As well as only 41% including a statement on how they monitor fundraising activities carried out by another person on their charity’s behalf, only 40% of reports included a statement on what the charity has done to protect vulnerable people and other members of the public whilst fundraising.
The Fundraising Regulator also found 81% of reports included a statement about a charity’s fundraising approach, while 67% of reports included a statement on the regulatory schemes they adhered to, and 59% of reports included a statement on the number of complaints about fundraising.
Overall, only 21% of reports included a statement on all requirements, and 15% reported on none of the requirements.
However, the Regulator also states that it recognises that this is only the second year charities have had to report in this way. It has updated its guidance to help charities meet the requirements to include detailed information on how to write clear and detailed statements.
Gerald Oppenheim, Chief Executive of the Fundraising Regulator, said:
“Although there is still work to do to achieve compliance with the reporting requirements, it’s positive to see most charities reporting on their fundraising approach, thereby demonstrating their commitment to transparency.
“As we approach year three of these reporting requirements, I urge charities and trustees to read our guidance, not only because the law requires these areas to be reported on, but most importantly because this gives supporters more information about charities’ fundraising activities. We remain committed to working with the sector to achieve comprehensive, detailed reports and our updated guidance is designed to help facilitate this.”
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