Best Practice for Fundraising Contracts Guidance

**The Guidance pages are currently being reviewed following the transfer of the Code of Fundraising Practice to the Fundraising Regulator. Please ensure that you have checked the latest version of the Code of Fundraising Practice available.

 

Who is this guidance for?

This document is designed for anyone drafting a fundraising contract, principally between voluntary organisations and commercial providers.

 

What does this guidance cover?

This guidance 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
  • 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. It is important that both parties ensure that they understand and agree all provisions before signing, and do not commence contractual operations until the contract is in place. General regulatory matters are covered in this guidance, 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.

This document splits the fundraising activity into the following sections

Definitions of professional fundraisers and consultants
Preparation and procedures
Relations with stakeholders
Key legal and tax points
Appendices