The Charites Act 2006 will set out new regulations for fundraising. It will also define who are professional fundraisers and the statements they will be required by law to make when fundraising.
The 1992 Charities Act set out the difference between a volunteer, a professional fundraiser, a consultant and a fundraising member of staff of a charity.
Professional Fundraiser
As opposed to a fundraiser (who is directly employed by a charity), a professional fundraiser is someone directly involved in fundraising and who receives a financial reward in excess of £500 per annum for that activity.
Charities employing a Professional Fundraiser should ensure that a contract has been agreed.
The Institute has published several useful Standard Forms of Agreement.
Volunteer Fundraiser
A volunteer fundraiser is not remunerated, but can be reimbursed for genuine out-of-pocket expenses.
However, anyone receiving more than £5 per day or £500 per year total for direct fundraising work is considered to be a professional fundraiser and is therefore subject to the same legal regulations under the 1992 Charities Act and the Charities Act 2006.
Consultant
A consultant is some who is remunerated by a charity for fundraising work, including strategy and planning, but who does not become directly involved in asking donors for money.
To find out more about the laws governing fundraising, see the section Fundraising and New Charity Law.
