Create a charter on the use of beneficiaries’ data, says think tank director

Tris Lumley of NPC tells an event that the charity sector needs to consider how service users’ personal data is collected and how their consent to keep and use it is gained

The charity sector needs to create a charter that would set out what constitutes acceptable use of beneficiaries’ personal data, according to Tris Lumley, director of innovation and development at the think tank NPC.

Speaking at the NPC event How Should Charities Respond to the Challenge of Privacy in the Digital Age? in central London this morning, Lumley said there needed to be greater communication across the sector to reach a consensus on how data should be treated.

The General Data Protection Regulation, tougher new EU data legislation, is due to come in to force in May next year, and while much of the discussion about the new rules has focused on their impact on fundraising, it will apply to all aspects of charities’ data processing.

Lumley said that people within NPC had been discussing what could be done to support the sector, particularly the smaller organisations.

“Something we’ve thought about is whether there are common things we should be setting in place as charities,” he said.

“Maybe we could work together on a personal data charter for the social sector that would start to draw out some of the common-sense expectations we think a reasonable person would have as a service user – and which would be socially acceptable to the wider public.”

For example, under the GDPR, consent to process data must be “freely given”, so organisations will not be able refuse to offer a service unless consent to process data is given. Lumley said charities needed to consider how they collected beneficiaries’ data and how they could ensure consent was freely given.

He said: “A lot of people are working on data in the charity sector, but it seems to me they aren’t connected to each other.”

Claire Tuffin, deputy director of strategy and policy at the homelessness charity St Mungo’s, agreed and said her charity was hoping to talk to other organisations, as well as commissioners and partners, about issues such as what kinds of data would be considered sensitive personal data, which will need to be processed differently under GDPR.

“It’s important to be working with sector partners to say ‘what are you doing?’, because whatever we decide there’s herd protection if we decide the same thing,” she said.

During the session, Tanvi Desai, a freelance data policy and strategy adviser, said there were certain dangers in relying solely on consent as a basis for processing people’s data.

Under the GDPR, organisations will under certain circumstances be able to process data without consent, but usually not if the person is asked for their consent and declines to give it.

Desai warned that organisations could find themselves “hostage” to the specific wording they had used to collect the consent.

“You are asking for consent for unanticipated future events,” she said. “Can you predict all the possible uses you will want to make of that data now and in the future?

“If you haven’t predicted them all, you might find that you can’t use the data unless you can revisit these people, which will present its own problems.”

She said organisations needed to be aware that people might not interpret the consent forms in the same way they did.

“A fair amount of research has found that often the data collector says someone’s agreed, but when you ask the respondents they say ‘Oh no, that wasn’t what the document said’,” said Desai. “So you need to think about whether you’re sure they have actually agreed to what you think they’ve agreed to.”

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Bluefrog reforms after liquidation under director Mark Phillips

The fundraising agency, now known as Bluefrog Fundraising, went into liquidation in April, owing more than £2m in backdated VAT

The fundraising agency Bluefrog has reformed after going into liquidation owing more than £2m to HM Revenue & Customs.

Bluefrog Ltd, which was founded in 1997 and whose clients included the RSPB, Marie Curie and Barnardo’s, owed £2.1m of VAT and another £300,000 to other creditors.

It went into liquidation in April and has since reformed as Bluefrog Fundraising with the same staff and clients at the same London office.

Mark Phillips, a director of both companies, said he felt “absolutely awful” about the closure of the company while it owed money. “Bluefrog has always been an ethical organisation,” he said.

Phillips attributed Bluefrog Ltd’s demise to new guidance on direct marketing services and VAT, which HMRC introduced in 2015.

Until then, many direct marketing companies believed the costs of producing mail packs could be zero-rated for VAT purposes if they were produced by a single source. But two years ago HMRC said this was wrong and such costs should be treated as standard-rate services.

It introduced transitional arrangements that exempted companies from action for past errors if they notified HMRC that they would apply the standard rate from the end of November 2015.

Phillips said he was unaware of the guidance or the transitional arrangements until a tax inspection last year, which resulted in Bluefrog Ltd being hit with a £2m-plus demand for VAT backdated to 2011.

Phillips said this left the company with no choice but to file for liquidation. He said he knew of other agencies that were continuing to wrongly zero-rate services. “This is going to hit a lot of people,” he warned.

“We had five VAT inspections in 20 years and never avoided paying tax. But when you are hit with something like this that is applied retrospectively, what can you do? This has been one of the worst experiences of my life.”

He said Bluefrog consulted lawyers about challenging HMRC, but was told it would cost £160,000 just to start a challenge and there was no guarantee of success.

Phillips said charity clients had been informed about the situation and pledged to attempt to pay back creditors “even if it takes 20 years”.

HMRC did not respond to questions before Third Sector‘s deadline.

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Movers: Kevin Clements is director of fundraising at the Animal Health Trust

Plus: Iain Heaton goes to Blue Cross; Janette O’Neill to retire from USPG; and Andy Moreman appointed chief executive of Young Devon

The Animal Health Trust has welcomed Kevin Clements as its new director of fundraising. He joined this month from St Nicholas Hospice Care, where he was director of fundraising and marketing and deputy chief executive.

The animal charity Blue Cross has appointed Iain Heaton as director of finance and resources. He joins in September from the Pony Club, where he has been working as director of finance and operations and latterly as interim chief executive.

Janette O’Neill, chief executive of the Anglican mission agency USPG, has announced that she is to retire after six years in the role. She was both the first woman and the first lay person to be appointed to the position.

Andy Moreman has been appointed chief executive of Young Devon, which supports vulnerable young people. He will join in September from the same role at the Christian publishing company CPO.

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