FACE-TO-FACE FUNDRAISING CODE OF PRACTICE

Updated 4/7/07. This information updates s.45.2 in The Voluntary Sector Legal Handbook 2nd edition.
The Institute of Fundraising issued in October 2006 a new code of practice on face-to-face fundraising, covering contact with the public on the street or door-to-door. The code stresses the importance of training on avoiding an obstruction, terminating an approach politely when asked to do so, how to deal with negative or aggressive responses, data protection issues and similar topics. It can be accessed via tinyurl.com/3ckzab .

Meanwhile, the Professional Fundraising Regulatory Association (PFRA), the self-regulatory body for face-to-face fundraising, is considering developing a definition of fundraising which would include "prospecting". This is where members of the public are approached on the street to sign up to support a campaign, and are later asked to donate to the organisation or become a volunteer.

GUIDANCE FOR HOUSEHOLDERS ON DOORSTEP COLLECTIONS

Added 1/7/07. This information updates s.45.2 in The Voluntary Sector Legal Handbook 2nd edition.
The Charity Commission, the Office of the Scottish Charities Regulator (OSCR) and the Department for Social Development in Northern Ireland issued in February 2007 joint guidance to help householders distinguish between collections for charitable purposes and those for commercial purposes. Charities involved in door-to-door collections may want to distribute it widely, and other charities may at least want to publicise the points made in the leaflet. The leaflet is available from the Charity Commission, OSCR or DSDNI, or online at www.charitycommission.gov.uk/registeredcharities/doorstep.asp, in Welsh via tinyurl.com/2k88hj , from OSCR via tinyurl.com/3c4qk9, or from DSDNI at www.dsdni.gov.uk/doorstep_collections.doc.

GUIDANCE ON DISTANCE SELLING

Added 1/7/07. This information updates ss.18.7.3.1 and 45.3 in The Voluntary Sector Legal Handbook 2nd edition.
The Office of Fair Trading and Department of Trade and Industry issued, in September, a new set of guidelines on distance selling, which includes any sale where the purchaser is not present. Although the Consumer Protection (Distance Selling) Regulations have been in effect since 2000, many businesses and organisations involved in telephone, email, mail order or internet sales are not aware that they must give customers clear information about the goods or services offered and the full price before they buy, confirm the purchase and delivery details in writing, and offer a cooling-off period of seven working days during which the order can be cancelled and a refund claimed.

A guide for businesses on distance selling is at www.oft.gov.uk/shared_oft/business_leaflets/general/oft698.pdf or can be ordered from 08457 22 44 99. The Consumer Protection (Distance Selling) Regulations 2000 are at www.opsi.gov.uk/si/si2000/20002334.htm.

ORGANISATIONS CAN BLOCK DIRECT MARKETING CALLS

Added 24/4/04. This information updates s.38.4.2 and 45.3.2 in The Voluntary Sector Legal Handbook 2nd edition.
From 25 June 2004 businesses--including voluntary organisations--have the same rights as individuals to opt out of unsolicited direct marketing phone calls, by registering with the Telephone Preference Service (www.tpsonline.org.uk). Registration is free and must be by internet, letter or fax. Individuals can also register by phone. TPS will confirm with organisations every year whether they want to continue to opt out.

Organisations which carry out telephone marketing or fundraising must check and comply with TPS lists.

The Privacy and Electronic Communications (EC Directive) (Amendment) Regulations 2004 are at www.opsi.gov.uk/si/si2004/20041039.htm.

SPAM IS A CRIMINAL OFFENCE

Updated 15/12/03. This information updates ss.38.4.4, 40.2.6 and 45.3.4 in The Voluntary Sector Legal Handbook 2nd edition.
From 11 December 2003 it is an offence, in some situations liable to an unlimited fine, for anyone to send unsolicited commercial email (UCE/spam) and text messages to individuals (including unincorporated bodies) who have not explicitly agreed to this in advance. Email, SMS text, fax and other electronic marketing messages can be sent to individuals only with their explicit consent--an opt-in, rather than the current widely used "tick here if you don't want to hear from us" opt-out.

There is an exception where the organisation has an existing customer relationship with the individual. In this case unsolicited electronic messages can be sent in order to market similar products, unless the individual has opted out from receiving such messages. This rule applies only to commercial relationships (where goods or services have been sold to the individual), and does not apply where the individual is, for example, a member of or donor to the organisation.

In addition, organisations with websites which use cookies or similar tracking devices to store information about visitors to the website should consider how the regulations may affect them. The organisation will have to provide information about the cookies, and allow individuals to refuse them.

The Privacy and Electronic Communications (EC Directive) Regulations 2003 are at www.opsi.gov.uk/si/si2003/20032426.htm. The Information Commissioner's guidance on the regulations is at www.informationcommissioner.gov.uk/eventual.aspx?id=96.

Paul Ticher, author of Data Protection for Voluntary Organisations (Directory of Social Change), has produced a summary of the rules. To get a copy click and send an email with your name and details.
(To prevent spamming, an email address is not given on screen. If you cannot connect by clicking, hold your cursor over the word "here" and the email address should appear at the bottom of your screen.)

Good practice guidelines are in the 11th edition of the Committee of Advertising Practice code, which came into force on 4 March 2003. To comply with the code, legitimate but unsolicited email marketing communications must immediately disclose themselves as such without having to be opened. Distance selling marketing communications must in most cases include a statement saying customers have the right to cancel orders.

In addition to the general opt-out statement on publicity, fundraising, membership etc materials, organisations should use an opt-in statement along the lines of "We may want to send you information about our work and products by email, text message or fax. Please tick here to give your consent for this." Organisations should not send direct marketing emails to individuals and unincorporated bodies unless they have agreed to this. If you send direct marketing emails, make clear in the topic bar/subject line what they are. Include a statement about the right to cancel orders in any distance selling materials.

CODE FOR CHARITY SHOPS

Added 19/8/05. This information adds a new section to s.45.4 in The Voluntary Sector Legal Handbook 2nd edition.
As part of the move towards self-regulation of fundraising, the Association of Charity Shops has published a Code of Charity Retailing. This covers the law and good practice and is at www.charityshops.org.uk/CodeCharityRetailing.html. From 2007 compliance with the code is likely to be compulsory for ACS members.

SUMMARY CODE OF PRACTICE ON OUTDOOR FUNDRAISING EVENTS

Added 9/3/04. This information updates s.45.5 in The Voluntary Sector Legal Handbook 2nd edition.
The Institute of Fundraising's code of practice on outdoor and challenge events in the UK has been summarised in a one-page leaflet, "UK Charity Challenge Events". Like all of the Institute's codes of fundraising practice, this can be downloaded from their website at http://go.gomango.co.uk/institute_of_fundraising (no www). Anyone involved in fundraising should ensure they are complying with the relevant codes.

ENTERTAINMENT AND ALCOHOL LICENSING

Updated 15/10/04. This information updates s.45.6.1.3 The Voluntary Sector Legal Handbook 2nd edition.
The Licensing Act 2003 passes responsibility for alcohol licensing from the magistrates court to local authorities, which are already responsible for public entertainment licensing. The provision of bottles of alcohol as prizes in raffles and tombolas will be exempt from the need for a licence, under certain conditions (clause 172).

The Licensing Act 2003 is at www.opsi.gov.uk/acts/acts2003/20030017.htm. The Act is very long so it may be easier to start with the explanatory notes which are at www.opsi.gov.uk/acts/en2003/2003en17.htmm. Guidance for local authorities is at www.culture.gov.uk/alcohol_and_entertainment. Information specifically about the impact on voluntary organisations and community groups is available from Community Matters, tel 0870-72 72 373, www.communitymatters.org.uk.

CHANGES FOR LOTTERIES AND GAMING

Updated 1/7/07. This information updates ss.45.6-45.8 in The Voluntary Sector Legal Handbook 2nd edition.
The Gambling Act 2005 comes fully into force, with new operating, personal and premises licences and permits in effect, from 1 September 2007.

The Gambling Act (very long!) is at www.opsi.gov.uk/acts/acts2005/20050019.htm.
General information about the Act is at www.culture.gov.uk/what_we_do/Gambling_racing.
Licensing conditions and codes of practice are on the Gambling Commission's website at www.gamblingcommission.gov.uk.

For the first time there is a statutory definition of lottery: a lottery must involve payment to enter, and winners must be chosen solely or initially by chance. Provided they are initially chosen by chance, processes involving skill or judgment can be be a factor in subsequently narrowing the winners.

For charities and voluntary organisations that run lotteries or prize competitions, the most significant changes are:

• A small lottery run as part of an exempt entertainment, or the provision of amusements with prizes at exempt entertainment, will be defined as an incidental non-commercial lottery if it is promoted wholly for purposes other than commercial gain, and will continue to be exempt from the obligation to register or obtain an operating licence. The current £250 limit on the value of prizes will be changed, and there will be a maximum prescribed sum for costs incurred in organising the lottery.
• Private lotteries, defined as a private society lottery, work lottery, residents' lottery or customer lottery, will also remain exempt from registration and licensing requirements and there will be some changes in the rules. These lotteries cannot be advertised except at the premises of the relevant society, work, residence or business.
• Society lotteries will be classed as small society lotteries (which must be registered with the local authority but do not need a lottery operating licence) and large society lotteries (which will register with the Gambling Commission and need an operating licence). A small society lottery is one where a society puts on sale tickets in a single year totalling no more than £20,000 for any single lottery, and no more than £250,000 in total for all of its lotteries. A large society lottery is one where the value of the tickets put on sale is more than this. Society lotteries must be promoted on behalf of a society which is established and conducted wholly or mainly for charitable purposes, participation in or support of athletic sports or games or cultural activities, or other purposes which are neither commercial nor for private gain.
• The maximum ticket price (currently £2) for society lotteries will be removed. There will be no maximum price, but every ticket must cost the same.
• A new 80/20 rule for society lotteries provides that if at least 20% of the proceeds are guaranteed to go to the charity or other cause for which funds are being raised, the promoters can then choose how to divide the remainder between prizes and expenses. This will replace the current rules which put a cap of 35% on the proportion that can be spent on expenses.