Pothecary Witham Weld Solicitors

Wednesday 8th September 2010
You are here  : Home Charities Update Q&A What should we consider when using a professional fundraiser?
What should we consider when using a professional fundraiser? Print

We are arranging a fundraising event over the Christmas period using a professional fundraiser. Are there any issues we need to worry about when using professional fundraisers?

Answer

When entering into an arrangement with a professional fundraiser the trustees of a charity should take care as to the type of arrangement they are getting involved with. In particular they should look to protect the good name of the charity. Some points to look out for include:

The event

  • Clearly publicising what the appeal is for.
  • Stating what the funds will be used for; whether they are for a specific project or for the general purposes of the charity.
  • What will happen to any surplus funds?
  • Consider opening a separate bank account for appeal funds.
  • Set out an end date for the appeal.

Agreements with fundraisers:

  • A written agreement (which is in a prescribed form) – consider obtaining legal advice.
  • A statement to be given to inform donors what proportion of the funds will go towards the professional fundraiser’s costs.
  • Details of when and how the funds will be transferred to the charity.
  • Consider if the fundraiser is reputable e.g. obtain references for them.

Other factors:

  • The charity might like to consider if the funds could be obtained in another way e.g. by way of grants from other charities or public bodies
  • Would it be possible to work with another charity to meat the needs of the particular projects or groups of beneficiaries the charity wished to benefit?

The Charities Act 2006 (‘the Act’)

The Act, aims to introduce amendments to the area of fundraising; particularly in relation to fundraising statements and collaborations with professional fundraisers. There will also be amendments introduced in relation to the licensing for door to door collections and street collections. Some of these amendments were due to come in to force in November 2007 but the fundraising sector have made representations to Government asking for the amendments to be postponed. The information provided is for guidance only and is not in anyway meant to be the provision of an opinion or legal advice.

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