Table of Contents
In Short
- Charities handling personal data must follow UK GDPR and the Data Protection Act 2018 to meet legal obligations and avoid penalties.
- Implement robust security measures, regularly review data practices, and ensure data is only kept as long as needed.
- Document data-handling activities, establish governance practices, and conduct regular audits to demonstrate compliance and build public trust.
Tips for Businesses
For compliance, charities should prioritise transparency by informing supporters and beneficiaries about how their data is used. Regularly auditing data processes and implementing security measures are also vital steps to mitigate risks and demonstrate commitment to privacy.
Charities tend to handle a wide array of personal data (from beneficiary details to all types of donor and volunteer information). Strong data protection practices and policies can help charities comply with legal requirements under the UK GDPR and safeguard their reputation. By prioritising data security and compliance, charities can build trust and strengthen their reputation. This article explores some of the critical aspects of UK data protection law and explains why charities must comply with its rules when processing personal information.
What is UK Data Protection Law, and Why Does It Matter?
UK data protection law (primarily consisting of the UK GDPR and the Data Protection Act 2018) regulates how organisations may handle personal data by imposing legal requirements around lawful processing, protection against misuse, and respect for individuals’ rights.
By following data protection rules, charities will be in a far better position to avoid severe consequences of non-compliance. This lowers the risk of regulatory fines and other enforcement actions.
Which Compliance Obligations Should Charities Consider?
Charities may process personal data for several reasons, such as working with beneficiaries, engaging supporters, or managing internal operations.
The UK GDPR requires organisations to adhere to critical data protection principles when handling personal data. By following these principles, charities can demonstrate transparency, accountability, and secure data-handling practices.
A range of obligations will apply when a charity acts as a data controller (i.e., it decides the purposes of processing personal information). The charity must carefully map out its data flows to determine which compliance obligations apply to it.
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Examples
However, here are some general obligations the charity will likely need to consider and implement where their activities fall within the scope of the UK GDPR rules:
- charities must handle data lawfully, fairly, and transparently, which involves informing individuals about how their data will be used;
- they must collect data for specific purposes and use it only for those purposes. Charities should limit data collection to what is necessary and keep information accurate and up-to-date;
- charities should retain data only as long as needed and dispose of it securely when it becomes irrelevant;
- keeping clear records and documenting accountability demonstrates a charity’s commitment to data protection law;
- the UK GDPR requires that organisations determine a valid lawful basis for processing personal data before doing so (e.g. a basis such as consent or legitimate interests). Considering and then documenting this decision carefully is vital for a charity;
- to protect personal data from risk, charities should adopt robust data security measures to reduce the risk of breaches. Regular audits allow charities to identify and address weaknesses in their security practices. Disposing of outdated data securely helps prevent unnecessary information from being compromised;
- if a data breach occurs, charities must report it to the ICO within 72 hours (if it meets the reporting threshold) and notify affected individuals in certain instances; and
- the UK GDPR rules strongly emphasise accountability and governance, meaning that charities must actively demonstrate their compliance with its requirements. To fulfil this duty, a charity should establish suitable data protection governance practices in line with the UK GDPR rules (such as regularly reviewing and approving internal privacy policies, documenting data-handling activities in data processing records, and conducting data protection impact assessments when necessary).
These reflect some key action points for charities, but the law is broad. Charities may need to implement several other mandatory requirements.
What are the Potential Consequences of Non-Compliance?
Non-compliance with data protection laws can lead to significant consequences, including fines from the ICO and potential reputational harm. The ICO enforces data protection law with various measures. These can include the issue of enforcement notices, penalties, and audits in cases of serious breaches. The ICO can fine organisations up to £17.5 million or 4% of their global turnover for severe violations of UK GDPR. As such, compliance is critical.
Failing to meet data protection obligations can also impact public trust and harm fundraising efforts. Charities often rely on a positive reputation to connect with their supporters, prioritising data protection (particularly when collecting a range of data from supporters).
How Should Charities Tackle Compliance?
Each charity’s approach to compliance depends on its activities, the types of data it processes, and the associated risks. A data protection audit is an excellent opportunity for charities to understand which data they process and why (and whether they do so as a data controller or processor) so they can determine their compliance obligations accordingly.
Seeking legal guidance can help charities understand their specific obligations and develop a data protection framework tailored to their operations. If a charity needs support in understanding its specific legal obligations, it should consider taking legal advice from a data protection solicitor to help guide it on compliance.
Key Takeaways
It is vital for charities processing personal data to implement robust data protection practices in line with UK GDPR. This is mandatory but also essential for safeguarding personal data and building good practices. These help build trust with supporters and obtain a good reputation. Following UK GDPR rules can help charities avoid fines, uphold their reputations, and protect personal information with confidence.
If you need help ensuring your charity complies with the UK GDPR rules, our experienced data, privacy and IT lawyers 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 0808 196 8584 or visit our membership page.
Frequently Asked Questions
The UK GDPR is the United Kingdom’s fundamental data protection law. It governs how organisations handle personal data by requiring lawful processing, transparency, and protection of individual rights. Charities must follow these rules to process data responsibly and legally.
Compliance with the UK GDPR can help charities manage personal data legally and ethically. This can help build trust and protect the charity from risk.
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