This Code focuses primarily on Fundraising Contracts as practical documents establishing and providing for the development of core working relationships between Voluntary and Community Organisations (‘Clients’) and providers of fundraising services for payment (‘Providers’).
To highlight the relevant issues it divides the process of creating a Fundraising Contract into stages and emphasises the need for ongoing contract management.
Fundraising services may be provided by large or small Providers and may include managing or assisting with:
- marketing and advertising campaigns
- direct marketing services
- fundraising strategies, policies and organisational capacity, and
- particular appeals, campaigns, projects, events, giving programmes and collections.
Overall the contract should precisely and comprehensively state the agreed commercial terms in simple language, ensuring regulatory compliance.
Both parties should ensure they understand and agree all provisions before signing and should not commence contractual operations until the contract is in place.
General regulatory matters are covered in the Code, but it does not extend to regulatory or practical issues which arise in relation to particular types of Fundraising Contract.
Regulation differs between the three UK jurisdictions and can vary depending on the precise nature of the activity and contract. An ‘*’ in the text indicates a legal requirement under the law of England and Wales, specifically relating either to Part II of the Charities Act 1992 or to the Trustee Act 2000.
For those for whom it is not a legal requirement, it should be applied as best practice. An important general distinction is between two types of Provider:
- ‘Professional Fundraisers’, who/which through a fundraising business or otherwise for reward raise funds on behalf of Clients and are (under English and Welsh law) specifically regulated; and
- ‘Consultants’, who/which advise, or provide management services, to facilitate a Client’s own fundraising activity and are not specifically regulated.
Providers and Clients must* identify any situation where ‘Professional Fundraiser’ regulations apply.
The Code may be read alongside the Model Fundraising Contract (available at the bottom of the page).
The Model provides a standard base and framework for Fundraising Contracts, to be adapted to particular circumstances, or to be used as a checklist.
The Code and the Model Fundraising Contract are both drafted with the intention of balancing the interests of Clients and Providers. It may be helpful for one party to a Fundraising Contract to draw the Code to the attention of the other.
The Code may be applied to Fundraising Contracts between trading subsidiaries of Clients, but it does not deal with the Client/subsidiary relationship.
The Code does not extend to contracts between Providers and their sub-contractors, or to Commercial Participator Agreements (see the Code of Fundraising Practice ‘Charities Working with Business’). The Code and Model do not constitute legal advice.
