The UK has a strong tradition of charitable giving driven by public goodwill towards charities. In 2023 alone, the UK public donated an estimated £13.9bn, despite the financial hardship many households are facing. This collective generosity, which enables the work of thousands of charities, relies on a culture of responsible and respectful fundraising practice.
One of the main methods through which charities engage with potential donors is via electronic communications. The government is currently updating existing legislation with the data (use and access) bill, which will make it easier for charities to contact members of the public by e-mail and text message.
Charities will be able to send direct marketing emails to individuals who have previously engaged with the charity, or have expressed an interest in their charitable purposes, using a so-called “soft opt-in” provision. This contrasts with obtaining explicit consent for each communication.
Charities have understandably welcomed the forthcoming provision with enthusiasm as it will empower them to strengthen relationships with supporters and facilitate greater fundraising. The Data and Marketing Association estimates that the new rule could increase annual donations to charities by an £290m a year. The potential to generate more income in a challenging economic environment will inevitably be an exciting prospect for many charities.
However, it’s of the utmost importance that fundraisers approach this new opportunity with caution and use the soft opt-in option responsibly when it is implemented later this year.
Protecting public trust in charities
The Information Commissioner’s Office (ICO) has stressed that fundraisers will need to think carefully about how they balance the right to contact people against the public’s rights and freedoms.
Charities should remember that just because they can use soft opt-in, it will not always be appropriate to do so. For example, contacting someone who has previously sought confidential support, and whose details are therefore on a charity’s database could potentially cause significant distress or even harm.
Being sensitive to people’s feelings, individual circumstances and potential vulnerabilities will be paramount.
Many of us remember the poor fundraising behaviour and techniques which led to the creation of the Fundraising Regulator in 2016. This included aggressive fundraising tactics employed by charities, such as excessive pressure placed on donors through high volumes of direct marketing, inadequate respect of vulnerable individuals, and the unlawful sharing of data.
Charities and those working within them will often have the best intentions, but this alone will not avoid bad outcomes. Fundraisers will need to exercise caution and constant vigilance to avoid inadvertently engaging in behaviour that risks causing harm and damaging the valued public trust and confidence that charities rely on.
Use responsibly
The data (use and access) bill is currently making its way through the Commons and is expected to be implemented following parliamentary approval later this year.
We will be working closely with the ICO and the Chartered Institute of Fundraising (CIoF) to produce guidance to help charities and fundraisers understand the new rules and use the provision responsibly as part of their broader GDPR obligations.
Ahead of this, there are a few things the sector can be doing in preparation for soft opt-in. All fundraising organisations should review the data they already hold and make sure there is an internal discussion about the future use of soft opt-in. Charities should check the consents they hold and in particular where they rely on legitimate interest now to contact supporters. They will still need to assess whether it will be appropriate in future to use the soft opt-in provision in electronic communications.
We run the Fundraising Preference Service (FPS), which enables people to manage direct marketing communications from registered charities in England, Wales and Northern Ireland that are sent by addressed mail, emails, text messages or phone calls. As charities start to use soft opt-in we will be monitoring the use of the FPS to see if there’s significant changes in use and volumes of requests. We will update the information we provide to the public to clarify that contacting potential supporters without explicit consent will be permissible when the new law is implemented.
The sector will also need to make a concerted effort to raise public awareness of the new provision and how it might lead to a legitimate increase in marketing from charities.
We’ll be keeping a close eye on the bill’s passage through parliament and will update the sector on developments in the coming months.
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