The Fundraising Regulator has published a guide for charities that offer child sponsorships after finding that some were not meeting the standards set out in its Code of Fundraising Practice.
Some common issues the regulator found included unclear information on how sponsorships were structured and how funds were allocated.
These oversights risk causing confusion or eroding public trust, it stated.
The guide aims to ensure that child sponsorship fundraisers are clear about where donors’ money goes and who benefits from their donations.
Prominent and easily accessible information
Charities must make clear from the outset who will benefit from donors’ gifts, and if a child sponsorship has a wider community benefit or project, it must be mentioned at the earliest opportunity, the guide states.
Before a donation is made, charities must provide donors with information on the project or scheme they have selected and how the money will be used, unless it is for a general fund, it states.
In broad terms, the types of child sponsorship and how the money will be used should be given to donors before or alongside a “donate now” button. It is good practice for charities to have a link to further information elsewhere on the website that provides further details, it states.
Charities must be able to demonstrate, if requested to do so, how the donors’ money has been used by keeping a record of donations, though the record will not need to be itemised to show each single use of the money.
Charities must also explain to donors what happens to their sponsorship if the child they are sponsoring were to reach a particular age, leave a project or if the child dies. Such information should be presented in a frequently asked questions, or similar, page on the charity’s website.
Charities should provide clear, prominent and easily accessible information on their website.
Information should be presented in a way that helps potential donors know about the child sponsorship programmes and where the donations are going before the point of donation. Such information should not be placed at the bottom of a website.
The complete guide is available on the regulator’s website.
Building stronger relationships with donors
Russell Brown, regulatory projects manager of the Fundraising Regulator, said: “For fundraisers, this guidance is not solely about compliance with the code.
“It is also about building stronger relationships with supporters by being open and honest.
“We hope the guidance provides peace of mind for donors – knowing that their contributions are being used effectively.
“By following these principles, charitable institutions can inspire confidence and continue to make a meaningful difference through child sponsorship.
“We hope this fundraising model remains a positive force within the sector.”
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