The Fundraising Regulator (FR) may include guidance on charities accepting cryptocurrencies as donations, when it reviews the Code of Fundraising Practice later this year.
Preparation for a review of the code will start this year. This was announced at the FR’s virtual annual event this week. The FR said it is “currently carrying out preparatory work for a review of the Code of Fundraising Practice, however, a new draft of the code is not imminent. More information will be available later in 2022 about the timescales for the review.”
The regulator will also be releasing a draft of its five-year strategic plan on its website soon and is encouraging charities and social enterprises to share their thoughts on the draft.
Lord Toby Harris, chair of the FR, also took the opportunity to reflect on what the regulator achieved last year, which included launching an internal equality, diversity and inclusion strategy. Not only that, the regulator achieved its highest rate of voluntary levy payments at 98%.
Future plans
The FR's new five-year strategic plan is estimated to be released on 1 September 2022, the chief executive Gerald Oppenheim said. The regulator is also preparing for a review of its Code of Fundraising Practice this year, but did not state when it would be published.
The code was last reviewed in 2019, before the pandemic and digital technology made vast changes to fundraising habits. In the last review, the regulator focused on making the document’s language more accessible. This time, it will focus on providing charities with guidance on digital technologies that have become more prevalent since the pandemic.
Part of this will include providing guidance in accepting cryptocurrencies. There has been a significant increase in crypto-philanthropy in recent years as virtual currencies become more mainstream. Edinburgh Dogs and Cats home received an £87,000 crypto-donation last year, and many charities are now accepting the currency. However, scepticism of it in the sector remains high.
According to its latest annual accounts, FR received 1,035 complaints from 2020-21. Many of these were about lotteries and prize drawers, which the new review of fundraising practice plans to address.
No plans to increase the levy
The regulator achieved the highest rate of its annual levy payment last financial year. The levy is a voluntary contribution made by charities that spend over £100,000 on fundraising each year that goes towards funding the regulator. Levy fees are calculated according to what a charity spends on fundraising.
When an audience member asked whether the levy would increase, Jill Thompson, member of the board, said that there were no plans to do this. The majority of charities pay on time and without complaint, she said. Though rising inflation is a concern, for now, there are no plans to change it, she said.
Chair of the FR’s standards committee Suzanne McCarthy was also at the event. When an attendee mentioned if guidance on legacy income would be included in the review of the code, McCarthy said she would take the suggestion into account.
One member of the audience asked if there was going to be any further guidance on accepting Russian money in light of the country’s invasion of Ukraine. Oppenheim advised fundraisers to follow existing guidance.
He said “our framework is there,” and it is up to trustees to be “extra vigilant now”.
Editor's note
This article has been corrected to state it is the preparatory work being carried out for a review of the Code of Fundraising Practice, and that no new draft is imminent.
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