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Regulator must understand charities’ concerns about its levy, says Acevo chief

Vicky Browning says the Fundraising Regulator must not treat all charities in the same way when it comes to persuading them to pay for its upkeep

The Fundraising Regulator must avoid treating all charities in the same way if it hopes to persuade more of them to pay its levy, according to Vicky Browning, chief executive of the charity leaders body Acevo.

In a statement made after the Fundraising Regulator published a list showing the names of the 162 charities that have not paid the levy to contribute towards its costs, Browning warned that the regulator needed to do more to tailor its arguments to different types of charities.

She said the list published by the regulator showed that certain kinds of charities were more likely than others not to pay, primarily religious or medical charities and those in the arts.

“This demonstrates a need for the Fundraising Regulator to engage with representatives from these types of charities and understand what their concerns are,” Browning said.

“The sector is not homogeneous: the same argument isn’t going to work with everyone. Charities that have concerns about paying need to see and hear that their perspective is understood and being taken into account.”

Browning said it was up to each charity to make up its mind on whether or not to pay the levy, but Acevo’s view was that it was better to have the voluntary self-regulation offered by the Fundraising Regulator than to have government legislation imposed on the sector.

The regulator’s list included 1,570 charities, the majority of which had paid the levy, but showing the names of 162 that had not. The regulator said another 95 charities not included on the list were currently negotiating with it about making the payment.

Of the 162 that have not paid, 13 have agreed to pay the levy next year, but not this year.

At least 85 of the 162 have charitable objects relating to medicine, religion or the arts, including museums.

Browning said: “Charities not paying the levy on the principle that donors’ money was not intended for the Fundraising Regulator must measure the risk against the principle and consider whether the principle should itself be subsidised by the majority of the rest of the sector that is paying the levy.”

A spokeswoman for the regulator said it engaged with all charities that got in touch to express concerns about the levy, but if charities did not reply to emails and letters it was “near impossible” to discover exactly what their concerns were.

“Where charities have refused to pay, we will continue to engage with them individually, and it is helpful that some have said they will start to pay the levy in year two,” she said.

The regulator was always happy to discuss any issues, she added.

“Many arts, faith and medical research charities have paid the levy, and we are pleased that they support independent regulation,” she said.

“We are working with the Arts Council, the Institute of Fundraising, the National Council for Voluntary Organisations and others to reach out to those organisations, and will continue to do so.

“As Acevo points out, the sector is not homogeneous, so it can be difficult to do this where charities are not part of wider networks.”

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Fundraising Regulator publishes list showing levy non-payers

It includes 162 charities that have not yet paid up to £15,000 a year to cover the regulator’s costs

The Fundraising Regulator has published a list showing 162 charities that it says have not paid the fundraising levy.

Those listed as having not paid the levy include the English National Opera, the anti-poverty charity War on Want, the conservation charity Plantlife, the mental health charity YoungMinds and Devon Air Ambulance.

Others listed as having not paid the levy, which is voluntary, include BirdLife International and the think tanks Policy Exchange and the Institute of Economic Affairs.

The list includes 1,570 organisations in England and Wales that have been asked to pay up to £15,000 a year to cover the regulator’s costs, with the majority listed as having paid their share of the levy.

But it does not include the names of 95 organisations that the regulator said it was in negotiations with over paying the levy.

Thirteen of the 162 charities that the regulator has identified as not paying the levy are marked as having agreed to pay the levy for year two but have not paid the year-one fee.

Charges levied on charities range from £150 a year for those spending between £100,000 and £149,999 per annum on fundraising to £15,000 for those that spend more than £50m a year.

Heléna Holt, chief executive of Devon Air Ambulance, said the charity did not intend to pay the levy because it did not provide the charity’s donors or beneficiaries with value for money.

She wrote a blog on the charity’s website in June in which she detailed the reasons why the charity had decided not to pay the levy and invited supporters to comment.

Holt told Third Sector that all the feedback the charity had received had been supportive of its decision to refuse to pay the levy, but this was constantly under review and the charity would pay if its supporters wanted it to.

A spokeswoman for the IEA said the charity did not intend to pay the levy. “This regulator was established after sharp and aggressive practices by some charities in fundraising,” she said. “The IEA doesn’t engage in such practices and has no intention of doing so. We have never received any complaint pertaining to fundraising that could be in any way helped or addressed by this regulator.

“If other charities have behaved so poorly they need to receive and pay for this sort of regulation, we wish them well. The IEA doesn’t fit this category, so we are not minded to pay for a service we don’t feel we need.”

A spokeswoman for the English National Opera said it intended to pay the levy and the Fundraising Regulator was aware of it. She said the charity had requested an invoice from the regulator in July.

The support charity Turn2Us is listed under its former name of Elizabeth Finn Care as having not paid year one of the levy but having agreed to pay year two.

A spokeswoman for the charity said it intended to pay the levy from year one but was in discussions with the Fundraising Regulator over what payment band it should fall into.

The children’s charity EveryChild is listed as having not paid, but Amanda Griffiths, chief executive of Family for Every Child, told Third Sector the request for payment had slipped through the gaps as a result of EveryChild becoming a dormant subsidiary of Family for Every Child last year. She said payment had now been made.

A spokeswoman for the Fundraising Regulator said: “Today, in the interests of transparency and fairness, the Fundraising Regulator has published a list that shows the charities that have paid or committed to pay and those that have not paid our year-one levy.

“The charities listed as non-payers include those that either refused to contribute to the levy or have not responded to our communications. The list will be updated to include charities with which we are still in negotiation, as and when they decide whether or not to pay. As such it is a live document. As always, we are grateful to those charities that have paid the levy and look forward to continued collaboration in the future.”

Peter Lewis, chief executive of the Institute of Fundraising, said: “While it is for the board of each charity to decide their own position, we strongly encourage every fundraising organisation to show their commitment to high standards by paying the levy.”

Sir Stuart Etherington, chief executive of the National Council for Voluntary Organisations and whose review led to the creation of the Fundraising Regulator, said charities that paid the levy were demonstrating their commitment to fundraising good practice and therefore safeguarding their integrity and reputation.

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‘Unprofessional’ charities have ignored levy payment requests, says Lord Grade

The chair of the Fundraising Regulator says 138 charities have not responded to requests for payment of the fundraising levy

Lord Michael Grade, chair of the Fundraising Regulator, has reiterated calls for large fundraising charities to pay the fundraising levy and said it was “unacceptable and unprofessional” that 138 had ignored letters requesting payment.

In a blog on the Fundraising Regulator’s website about his first meeting with Amanda Bringans, chair of the Institute of Fundraising, Grade said more than 1,400 charities had paid or promised to pay the levy to fund the regulator.

“Those charities that haven’t paid are effectively being subsidised by those who have, which is hardly a fair situation,” said Grade.

“All of these charities have the ability to pay the levy. It is unacceptable and unprofessional that 138 charities have still not even responded to our several communications about the levy. If a charity feels that it should not pay the levy, we need to know why.”

Almost 1,800 charities that spend more than £100,000 a year on fundraising are eligible to pay the levy.

The regulator is due to announce by the end of the month the names of all the charities that fall within the scope of the levy and whether or not they have paid.

Bringans wrote in a blog post about their meeting last month that Grade had agreed to speak more positively about fundraisers after he was criticised by sector umbrella bodies for saying too many charities were “proving to be laggards” in terms of reforming their fundraising practices.

In his post published yesterday, Grade said that some of his words about the sector “have been emphasised by the media”, which had focused on his “criticism of the few”.

He said: “Yes, we have been firm and will continue to be firm in calling out bad practice.

“However, we have also consistently acknowledged the outstanding work undertaken by charities and fundraisers. Sadly, we don’t have the power to write our own headlines but, whenever the opportunity arises, we will speak positively about the charitable sector and its excellent work.”

Grade said in his blog that most larger and many smaller charities were redefining their relationships with donors so the changes so the changes in regulation were an opportunity rather than a threat.

“There are many in business who could learn from this,” he said.

“This reflects how fundraisers have been committed to operating to an increasingly high standard.

“It is clear that the public is appreciative when fundraisers interact in a sensitive, considerate manner, understanding the precious trust the public holds in charities and how vital that trust is to ensuring that charities continue to be supported.”

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Fundraising Regulator will name charities that have not paid its levy

Of the 1,768 charities that have been asked to pay the voluntary levy to fund the regulator’s costs, 200 have either refused or ignored requests for payment

The Fundraising Regulator will, at the end of August, name the charities that have so far failed to pay the fundraising levy, it announced today.

The regulator said it would publish a list at the end of next month, the close of the first levy year, disclosing the names of the eligible charities that have and have not paid the levy. All charities that spend more than £100,000 a year on fundraising have been asked to pay the voluntary levy, which covers the regulator’s running costs.

The regulator said today that of the 1,768 charities eligible to pay, 1,344 had paid or committed to paying, 224 were in negotiation with the regulator about payment, 35 had declined to pay and 165 had not replied.

The decision to name the organisations that have not paid comes after Sir Stuart Etherington, chief executive of the National Council for Voluntary Sector Organisations, called on the regulator to “name and shame” the non-payers. Etherington conducted a review of fundraising self-regulation in 2015, which called for the creation of a new Fundraising Regulator after the national press criticised fundraising practices.

On 10 July, the regulator published a list of all those organisations that had registered with the Fundraising Regulator, but it did not include the names of the eligible charities that had not. The existing register includes charities that have paid the levy and those which, because they spend less than £100,000 a year on fundraising, fall outside the levy but have registered their support.

The Fundraising Regulator said in statement today that its board had concluded it would be in the interests of transparency and fairness to disclose the complete list of those charities that had and had not paid.

It said that before doing so it would contact all non-respondents again and had asked the NCVO and the Institute of Fundraising to contact the small number of those that are their members to encourage them to pay the levy. The list will also be shared with the Charity Commission.

Lord Grade of Yarmouth, chair of the regulator’s board, said: “The public generously supports charities, so their commitment to good fundraising practice is of vital importance. For charities spending more than £100,000 a year on fundraising, paying the levy is a very clear sign of their commitment to ensuring the maintenance of excellent fundraising standards and professionalism.”

Etherington said that paying the levy demonstrated a commitment to good practice and showing the charities that had paid and the small proportion that had not was fair to all concerned.

Peter Lewis, chief executive of the Institute of Fundraising, said: “Fundraisers absolutely want the Fundraising Regulator to succeed. I would encourage all fundraising charities to sign up to support the regulator and pay the levy as appropriate.”

The proposal to name and shame organisations has faced opposition within the sector.

Earlier this month, Jay Kennedy, director of policy and research at the Directory of Social Change, told Third Sector: “Naming and shaming is at best premature and at worst will just damage the sector’s reputation further with more crappy headlines. It could also damage the reputations of any charities that are unfairly castigated in print.”

Kennedy said some charities might not have paid because choosing to do so was a strategic decision for the board that they might not have been able to make yet.

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IPPF refuses to pay levy to Fundraising Regulator

The International Planned Parenthood Federation says most of its fundraising activity does not happen within the UK

The International Planned Parenthood Federation has refused to pay the levy to fund the Fundraising Regulator.

The IPPF does not appear on the regulator’s register of charities that have paid the voluntary levy, published yesterday, and the charity confirmed to Third Sector today that it had not paid the levy and did not plan to.

All charities that spend more than £100,000 a year on fundraising are eligible to pay a voluntary levy to fund the regulator, but 370 charities of the almost 2,000 eligible organisations contacted by the regulator have not responded to the request or have outright refused to pay.

The IPPF, which campaigns on sexual health and rights, as well as providing advice and care in 172 countries, had an income of £76m in the year to 31 December 2015, and in the same year spent £3.6m on generating voluntary income.

But it said most of that fundraising activity had not happened in the UK.

A spokesman for the IPPF told Third Sector: “In line with options provided to the IPPF, we are not paying the voluntary levy.

“The IPPF receives almost all of its funding from governments, foundations and other institutions.

“Where private individuals’ contributions are received, that’s almost entirely through a separately led team: IPPF Western Hemisphere Region, based in the United States.”

Last week, Sir Stuart Etherington, the chief executive of the National Council for Voluntary Organisations called for charities that do not pay to be named and shamed, and last week the regulator said it was considering doing so.

The register published yesterday includes the names of all charities that have paid the levy, as well as those charities that are not eligible to pay it but have paid an annual fee of £50 to register with the regulator. It does not include those that are eligible but haven’t yet paid.

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Name and shame non-payers of fundraising levy, Sir Stuart Etherington urges

The chief executive of the National Council for Voluntary Organisations says the Fundraising Regulator should make charities that have not yet paid the levy explain themselves

Sir Stuart Etherington, chief executive of the National Council for Voluntary Organisations, has called on the Fundraising Regulator to make public the names of charities that fail to pay its levy.

Speaking at a reception in London this morning to mark the launch of the Fundraising Preference Service and the first anniversary of the Fundraising Regulator, Etherington said charities that did not pay the levy should be made to explain themselves.

All charities that spend more than £100,000 a year on fundraising have been asked to pay the levy to fund the regulator, totalling almost 2,000 charities.

Stephen Dunmore, chief executive of the regulator, said today that 370 charities had either refused outright to pay the levy or simply not responded to “four or five” letters requesting payment.

The levy is voluntary, but Etherington said that ensuring the regulator was properly funded was crucial to sustaining self regulation – which, in turn, he said, was vital to maintaining the independence of the voluntary sector.

He said he was aware that the regulator’s board had decided to publish the names of those charities that had paid the levy.

“That is a very honourable way of approaching things, but my advice is to publish the names of those that have not paid the levy,” he said. “Name and shame. Put it out there and let them explain why they do not support the notion of self-regulation.”

Martyn Lewis, former chair of the NCVO and current chair of the Commission on the Donor Experience, agreed with him, saying it was a terrific idea.

Etherington led the review of fundraising in 2015 that led to the establishment of the regulator and the Fundraising Preference Service, which will allow people to block communications by phone, text, email or post from specific charities.

In his review, Etherington called for the FPS to be a “big red button” that people could activate to stop all communications from all charities altogether.

But he said he believed the more “subtle” form the FPS had taken was outstanding and better than his initial suggestion.

During the same event, Suzanne McCarthy, chair of the Fundraising Regulator’s standards committee, said the regulator would be conducting a “root-and-branch review” of the Code of Fundraising Practice in 2018.