Faith-Based Charities Urged to Adhere to Fundraising Practice Code

Church Donations Classified as Charitable Giving by Fundraising Regulator

The Fundraising Regulator (FR) has highlighted the need for churches to comply with the Code of Fundraising Practice (CFP), emphasizing that church collections, tithes, and offerings fall under charitable giving.

Despite sometimes being mischaracterized as a “quango,” the FR is actually a self-regulatory body that functions independently of government funding, relying on voluntary contributions from charities and fundraisers.

The CFP aims to enforce transparency, honesty, and respect in fundraising activities while ensuring that all such efforts adhere to legal standards.

A recent FR report revealed that many faith-based charities were unaware that fundraising during worship is categorized as charitable fundraising, leading to some organizations not adhering to the CFP standards.

One notable case involved a faith-based charity that launched an appeal for a new church building without a proper complaints process or clarity on the outcome if the fundraising target was not achieved. Although the initial attempt to purchase the church failed, the funds were later used for acquiring a different property.

According to the FR, “There were not any significant issues found with the fundraising campaign. The nature of a fundraising campaign to buy a building means this is likely to take some time, and there may be some unsuccessful attempts … There was no information to suggest donors had asked for their donations back and been refused, and the funds were restricted. We therefore did not find a breach about the conditions attached to the donations.”

However, the charity’s lack of response to a complaint from a former church member did result in a technical breach of the CFP.

Nikki Renken, Head of Casework at the Fundraising Regulator, stated in their latest advisory blog, “The Fundraising Regulator can help faith-based organisations understand when fundraising activity falls within the scope of the code and to make sure the right safeguards are in place so that fundraising is carried out openly, respectfully and with appropriate support for those who may be in vulnerable circumstances.

“The Fundraising Regulator works to support organisations to fundraise in a way that reflects their values, builds trust and gives trustees confidence that they are meeting their responsibilities.”