The Fundraising Regulator has opened a review to the charity sector on its proposal to increase the Fundraising Levy.
The levy constitutes the majority of the Fundraising Regulator’s funding and sees charities that spend over £100,000 on their annual fundraising activity pay a voluntary contribution to fund the regulator’s services.
The regulator said the proposal has been put forward in the context of new regulatory responses to the rise of online fundraising; an increase to the regulator’s caseload; its commitment to proactive and reactive regulation and rising costs associated with a challenging economic climate and unexpected inflation.
It is seeking views from people within charitable fundraising organisations who are responsible for paying the levy or maintaining registration with the regulator.
For those spending £100,000 to £849,999, the regulator is proposing a 20% increase.
The proposed rate between £1m and £7.5m is an increase of 30% and for those spending more than £10m by 50%.
The regulator is also proposing new bands. This will be for organisations spending between £850,000 and £999,999 a year (at £2,500) and £7.5m and £10m (at £10,000 a year).
Responses will be considered by the regulator’s board and published in a summary of responses in early 2024.
Following this consultation, the changes will come into effect in September 2024.
Further increases from September 2025 will be tied to the Consumer Price Index to ensure they are more gradual, with charities given advance notice before rises come into effect.
Toby Harris, chair of the Fundraising Regulator, said: “The past seven years have seen us grow as an organisation that promotes public trust and meets the regulatory needs of the sector. This new funding model will allow us to continue our work to promote public trust in charitable fundraising by ensuring it is legal, honest, open and respectful.
“We are committed to making sure charities are well informed and prepared prior to the increases taking effect, and we encourage all registered organisations to respond to our consultation on these changes.”
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