{"id":190764,"date":"2024-10-11T14:54:54","date_gmt":"2024-10-11T13:54:54","guid":{"rendered":"https:\/\/legalvision.co.uk\/?p=190764"},"modified":"2024-10-13T23:36:04","modified_gmt":"2024-10-13T22:36:04","slug":"legal-requirements-fundraising","status":"publish","type":"post","link":"https:\/\/legalvision.co.uk\/business-structures\/legal-requirements-fundraising\/","title":{"rendered":"Legal Requirements for Fundraising: Staying Compliant in the UK"},"content":{"rendered":"\n<p>Fundraising is vital for UK charities, allowing them to raise money to support important causes and initiatives. However, charities must understand that fundraising comes with <a href=\"https:\/\/legalvision.co.uk\/business-structures\/navigating-charity-laws-uk-non-profits\/\">various legal and regulatory obligations<\/a>. Charities must comply with these obligations to ensure transparency and compliance with legal rules. This article explores legal requirements for fundraising that UK charities need to understand.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">How is Fundraising Regulated in the UK?<\/h2>\n\n\n\n<p>Fundraising in the UK operates under a self-regulatory system designed to uphold high standards of conduct. This system intends to ensure that all fundraising activities are open, honest, and respectful. The Code of Fundraising Practice, which <a href=\"https:\/\/legalvision.co.uk\/business-structures\/not-for-profit\/\">charities must follow<\/a>, sets these standards and applies to all types of charitable fundraising.\u00a0<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What is the Role of the Fundraising Regulator?<\/h2>\n\n\n\n<p>The Fundraising Regulator is crucial in overseeing charitable fundraising in England, Wales, and Northern Ireland. By regulating how charities raise money from the public, it ensures that fundraising activities remain ethical and transparent.&nbsp;<\/p>\n\n\n\n<p>The regulator enforces the Code of Fundraising Practice, which provides clear guidelines for charities and fundraisers. It ensures that all fundraising activities are conducted with honesty, openness, and respect. In addition to setting these standards, the Fundraising Regulator investigates complaints from the public about improper fundraising practices and works to resolve these issues.&nbsp;<\/p>\n\n\n\n<p>Although the regulator does not have statutory powers, it can take corrective actions, such as removing non-compliant organisations from its public register or recommending changes to improve fundraising practices.&nbsp;<\/p>\n\n\n\n\n<a href=\"#content-next\"\n   class=\"block p-4 mt-10 text-xl font-bold text-center text-white no-underline bg-gray-800 rounded-t-xl\">\n    Continue reading this article below the form\n    <i class=\"text-xl fa-regular fa-arrow-down\"><\/i>\n<\/a>\n<div class=\"px-6 pt-10 pb-12 mb-10 text-center bg-gray-100 rounded-b-xl sm:px-12 test\">\n    <div class=\"mb-8 text-2xl font-bold text-orange\">\n        Need legal advice?\n        <br>\n        <span class=\"text-lg not-prose\">\n                            Call <a href=\"tel:+448081968584\" 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The regulator reviews and addresses these complaints for charities operating in England, Wales, and Northern Ireland. If a complaint falls outside its remit, the regulator will ensure it is directed to the appropriate body, helping the complainant navigate the process.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What Legal Considerations Must Charities Address When Fundraising?<\/h2>\n\n\n\n<p>Charities must ensure they comply with various legal requirements when conducting fundraising activities. These include:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Managing Commercial Participators&nbsp;<\/h3>\n\n\n\n<p>Specific obligations arise when businesses sell goods or services on the basis that a charity will benefit. Charities need to ensure that they have clear written agreements with these businesses to ensure transparency and prevent misuse of their name or logo.\u00a0<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Engaging Professional Fundraisers<\/h3>\n\n\n\n<p>Many charities hire professional fundraisers to collect donations, e.g. through street collections or door-to-door solicitation. These fundraisers must follow specific disclosure requirements, providing solicitation statements explaining their role and remuneration. Charities must ensure they select reputable fundraisers and oversee their activities to maintain transparency.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Public Charitable Collections<\/h3>\n\n\n\n<p>Public collections, including street or house-to-house fundraising, are subject to a complex legal framework. Charities often need specific licences for public collections and must comply with regulations from local authorities. Additionally, face-to-face fundraising is monitored through a self-regulatory scheme, ensuring that fundraising remains ethical.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Solicitation Statements<\/h3>\n\n\n\n<p>Charity officers, employees, or <a href=\"https:\/\/legalvision.co.uk\/business-structures\/duties-of-a-commercial-trustee\/\">trustees<\/a> must provide solicitation statements when soliciting funds. These statements must disclose their role and any remuneration. Failure to comply can lead to fines of up to \u00a31,000.\u00a0<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Lotteries, Competitions, and Prize Draws<\/h3>\n\n\n\n<p>Lotteries, competitions, and prize draws are popular fundraising methods but must comply with strict legal guidelines. Charities need the appropriate licences and must comply with all tax rules and regulations regarding prizes to avoid legal problems.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Organising Fundraising Events<\/h3>\n\n\n\n<p>Charities often organise events to raise funds, such as fairs, sponsored walks, and other activities. These events must comply with legal requirements, including obtaining permits and meeting safety standards.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Disclosure Rules and Reporting Requirements<\/h3>\n\n\n\n<p>Charities with a gross income of over \u00a310,000 must disclose their registered status in all fundraising materials, including advertisements and solicitation documents. Misrepresenting a charity&#8217;s status can lead to criminal charges.&nbsp;<\/p>\n\n\n\n<p>To ensure transparency, charities with larger incomes or assets must also have their accounts audited and provide comprehensive fundraising reports in their annual statements.<\/p>\n\n\n    <div class=\"my-7 lg:my-10 border-y-2 border-gray-100 py-7 lg:py-10 flex flex-col sm:flex-row items-start gap-10\">\n                    <img decoding=\"async\" class=\"w-52 mx-auto my-0! rounded\" src=\"https:\/\/img.legalvision.com.au\/wp-content\/uploads\/sites\/4\/2024\/08\/21064342\/LV_UK-Tax-Invoice-Template.jpg\" alt=\"Front page of publication\"\n                 loading=\"lazy\" width=\"208\" height=\"298\">\n                <section>\n            <div class=\"text-2xl font-bold\">Tax Invoice Template<\/div>\n            <div class=\"body-text\">\n                <p>When creating a tax invoice for your customers, it needs to be HM Revenue &amp; Customs-appropriate. LegalVision&#8217;s free Tax Invoice Template will help. Simply customise it and use the built-in formulas to finalise your total.<\/p>\n            <\/div>\n            \n\n<a href=\"https:\/\/go.legalvision.co.uk\/uk-tax-invoice-template.html\" class=\" block px-5 py-3.5 max-w-fit bg-orange button__hover transition rounded text-white font-bold text-lg no-underline uppercase leading-tight text-center\" target=\"\" rel=\"\">Download Now<\/a>        <\/section>\n    <\/div>\n\n\n\n\n<h2 class=\"wp-block-heading\">Additional Responsibilities for Charities&nbsp;<\/h2>\n\n\n\n<p>In addition to these legal requirements, there are various other fundraising rules.<\/p>\n\n\n\n<div  class=\"box box--icon box--info\">\n    <p>For example, charities must conduct due diligence on large or unusual donations, ensure vulnerable donors are treated fairly, and return donations from individuals who lack mental capacity. Online fundraising must also be transparent, and funds should be used for their stated purpose.<\/p>\n<\/div>\n\n\n\n<p>As such, there are various fundraising rules to navigate and comply with. You should seek legal advice if your charity needs clarification about its legal obligations when fundraising.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Key Takeaways<\/h2>\n\n\n\n<p>To comply with the legal framework of charity fundraising in the UK, charities must understand and adhere to various rules governing their fundraising activities. This includes following the Code of Fundraising Practice, managing professional fundraisers, securing licences for public collections, providing clear solicitation statements, and maintaining transparency in all financial disclosures.&nbsp; If you are uncertain about legal obligations, you should seek legal advice to ensure your charity\u2019s activities are compliant.&nbsp;<\/p>\n\n\n\n<p>If you need legal advice on fundraising, our experienced <a href=\"https:\/\/legalvision.co.uk\/business-sale-purchase-lawyers-lp\">business structure lawyers<\/a> can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on <a href=\"tel:+448081968584\" class=\"AVANSERnumber dynamic-number\">0808 196 8584<\/a> or visit our <a href=\"https:\/\/legalvision.co.uk\/membership\/\">membership page<\/a>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Frequently Asked Questions&nbsp;<\/h2>\n\n\n\n<div class=\"schema-faq wp-block-yoast-faq-block\"><div class=\"schema-faq-section\" id=\"faq-question-1728858521862\"><strong class=\"schema-faq-question\"><strong>Do charities need to follow legal rules when fundraising?<\/strong><\/strong> <p class=\"schema-faq-answer\">Yes, charities must follow various legal rules when fundraising to ensure their activities are ethical and transparent. These include proper solicitation statements, managing professional fundraisers, and obtaining licences for public collections.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1728858539880\"><strong class=\"schema-faq-question\"><strong>Who regulates charity fundraising in England?<\/strong><\/strong> <p class=\"schema-faq-answer\">The Fundraising Regulator oversees <a href=\"https:\/\/www.gov.uk\/government\/organisations\/charity-commission\">charity fundraising<\/a> in England. It sets guidelines for charities to ensure their fundraising activities are ethical, transparent, and in line with best practices. Although it does not have statutory powers, its role is crucial in maintaining public trust in charitable fundraising.<\/p> <\/div> <\/div>\n\n\n\n\n<div class=\"not-prose m-feedback-prompt\">\n    <!-- Thumbs up\/down bar -->\n    <div class=\"m-feedback-prompt__main\">\n        <div class=\"m-feedback-prompt__title\">Was this article helpful?<\/div>\n        <div>\n            <!--span class=\"m-feedback-prompt__button--text\">Thanks!<\/span-->\n            <button type=\"button\" class=\"m-feedback-prompt__button m-feedback-prompt__button--yes\"\n                    data-analytics-link=\"feedback-prompt:yes\" aria-label=\"Agree\">\n                <i class=\"fa-regular fa-thumbs-up fa-3x\"><\/i>\n            <\/button>\n            <button type=\"button\" class=\"m-feedback-prompt__button m-feedback-prompt__button--no\"\n                    data-analytics-link=\"feedback-prompt:no\" aria-label=\"Disagree\">\n                <i class=\"fa-regular fa-thumbs-down fa-3x\"><\/i>\n            <\/button>\n        <\/div>\n    <\/div>\n\n    <!-- Feedback form -->\n    <div class=\"m-feedback-prompt__form\">\n        <div class=\"m-feedback-prompt__form--thanks \">\n            <div>Thanks!<\/div>\n            <p>\n                We appreciate your feedback \u2013 your submission has been successfully received.            <\/p>\n        <\/div>\n        <form id=\"contact-form\" class=\"m-feedback-prompt__form--form\" action=\"\" method=\"post\">\n            <input type=\"hidden\" id=\"authenticity_token\" name=\"authenticity_token\" value=\"9eb4f72322\" \/><input type=\"hidden\" name=\"_wp_http_referer\" value=\"\/api\/wp\/v2\/posts\/190764\" \/>            <input value=\"https:\/\/legalvision.co.uk\/business-structures\/legal-requirements-fundraising\/\" type=\"hidden\" name=\"currenturl\"\n                   id=\"currenturl\">\n            <input value=\"Legal Requirements for Fundraising: Staying Compliant in the UK\" type=\"hidden\" name=\"currenttitle\"\n                   id=\"currenttitle\">\n            <label>\n                <!-- display on thumbs-up -->\n                <span class=\"m-feedback-prompt__feedback m-feedback-prompt__feedback--yes\">\n                    Can you tell us <span class=\"font-semibold\">why<\/span> you found it helpful?\n                <\/span>\n\n                <!-- display on thumbs-down -->\n                <span class=\"m-feedback-prompt__feedback m-feedback-prompt__feedback--no text-lg\">\n                    How can we better improve this article?\n                <\/span>\n                <textarea name=\"feedbackmessage\" id=\"feedbackmessage\" required><\/textarea>\n            <\/label>\n\n            <div class=\"m-feedback-prompt__form--error\" id=\"form-submit-error\"><\/div>\n            <button id=\"submit-contact-form-button\" type=\"submit\" name=\"commit\" class=\"m-feedback-prompt__form--submit\"\n                    data-analytics-link=\"feedback-prompt:submit\">\n                Submit            <\/button>\n        <\/form>\n    <\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Fundraising is vital for UK charities, allowing them to raise money to support important causes and initiatives. However, charities must understand that fundraising comes with various legal and regulatory obligations. Charities must comply with these obligations to ensure transparency and compliance with legal rules. This article explores legal requirements for fundraising that UK charities need<a href=\"https:\/\/legalvision.co.uk\/business-structures\/legal-requirements-fundraising\/\">Continue reading <span class=\"sr-only\">&#8220;Legal Requirements for Fundraising: Staying Compliant in the UK&#8221;<\/span><\/a><\/p>\n","protected":false},"author":13436,"featured_media":3254,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_relevanssi_hide_post":"","_relevanssi_hide_content":"","_relevanssi_pin_for_all":"","_relevanssi_pin_keywords":"","_relevanssi_unpin_keywords":"","_relevanssi_related_keywords":"","_relevanssi_related_include_ids":"","_relevanssi_related_exclude_ids":"","_relevanssi_related_no_append":"","_relevanssi_related_not_related":"","_relevanssi_related_posts":"","_relevanssi_noindex_reason":"","editor_notices":[],"footnotes":""},"categories":[36],"tags":[20,286,1191,2239],"class_list":["post-190764","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-structures","tag-small-business","tag-charity","tag-fundraising","tag-charity-commission"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.1.1 - 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Sej has a strong interest in fast-developing areas such as data privacy law and AI and has drafted articles which have been published in leading UK legal website publications, including The Lawyer and The Law Society Gazette websites.","sameAs":["https:\/\/www.linkedin.com\/in\/sejlamba\/"],"url":"https:\/\/legalvision.co.uk\/author\/sehajlamba\/"},{"@type":"Question","@id":"https:\/\/legalvision.co.uk\/business-structures\/legal-requirements-fundraising\/#faq-question-1728858521862","name":"Do charities need to follow legal rules when fundraising?","acceptedAnswer":{"@type":"Answer","text":"Yes, charities must follow various legal rules when fundraising to ensure their activities are ethical and transparent. These include proper solicitation statements, managing professional fundraisers, and obtaining licences for public collections.","inLanguage":"en-GB"},"inLanguage":"en-GB"},{"@type":"Question","@id":"https:\/\/legalvision.co.uk\/business-structures\/legal-requirements-fundraising\/#faq-question-1728858539880","name":"Who regulates charity fundraising in England?","acceptedAnswer":{"@type":"Answer","text":"The Fundraising Regulator oversees <a href=\"https:\/\/www.gov.uk\/government\/organisations\/charity-commission\">charity fundraising<\/a> in England. It sets guidelines for charities to ensure their fundraising activities are ethical, transparent, and in line with best practices. Although it does not have statutory powers, its role is crucial in maintaining public trust in charitable fundraising.","inLanguage":"en-GB"},"inLanguage":"en-GB"}]}},"_links":{"self":[{"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/posts\/190764","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/users\/13436"}],"replies":[{"embeddable":true,"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/comments?post=190764"}],"version-history":[{"count":2,"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/posts\/190764\/revisions"}],"predecessor-version":[{"id":190775,"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/posts\/190764\/revisions\/190775"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/media\/3254"}],"wp:attachment":[{"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/media?parent=190764"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/categories?post=190764"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/tags?post=190764"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}