IOF wessex, june 2016
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Transcript of IOF wessex, june 2016
The future direction of
fundraising - retaining
public trust in charities
Andrew Hind
We should take the long view:597AD - Canterbury
Over 1,400 years of history
• King’s School, Canterbury 597• Order of St John 11th century• Statute of Elizabeth 1601• The Victorian philanthropists – NSPCC 1884• Oxfam 1942• Samaritans 1953• The hospice movement 1967• ChildLine 1986• Help for Heroes 2007
Out in the wider world the storm clouds have broken
• Over the last 5-10 years, trust has been disintegrating in many areas of national life – bankers, MPs, journalists, the BBC
• We have seen a transfer of power to the informed consumer, a transparency agenda fuelled by rolling 24-hour news / social media, and the death of corporate paternalism.
Copyright: Andrew Hind
Copyright: Andrew Hind
Olive Cooke – May 2015, when the storm clouds broke over charity fundraising
• Fell to her death in Bristol.• 92 year-old, long-serving
poppy seller.• Received award from PM.• Gave interview to Bristol
Post saying she was “overwhelmed” by charity mailings.
• Her death acted like a lightning conductor
Copyright: Andrew Hind
What the FRSB found – part 1• A horrifying story.• Generous supporter of c.20
charities in 2000.• Receiving 3,000 mailings pa by
2015 – how did it happen?• 70 of 99 charities got Mrs
Cooke’s details from other charities or list brokers.
• Only 14 of the 99 provided an opt-out ‘tick box’
Copyright: Andrew Hind
First fallout from Olive Cooke – The Mail on Sunday 7/6/15
Copyright: Andrew Hind
The assault continues – Mail 7/7/15
Copyright: Andrew Hind
What the FRSB found – part 2• Undercover reporters got jobs
in Listen and GoGen.• Big charities were not properly
supervising their agencies.• NSPCC 660,000 calls,
monitored only 0.16%.• BRC, Macmillan, Oxfam had no
record of calls monitored.• Donors misled about the way
their personal data would be used – see also Diabetes UK, Age UK, Dogs Trust reports.
Copyright: Andrew Hind
What the FRSB found – part 2• Misleading privacy/fair processing notices:• British Red Cross: “We like to keep supporters in
touch with our work, if you do not wish to receive further communications from the British Red Cross, or agencies working on our behalf, please write to…, or email…”
• Macmillan: “We will contact you from time to time by phone, email, text or post to tell you about how we can support you and how you can get involved with our team.”
Copyright: Andrew Hind
Lessons from the fundraising meltdown
• ‘Industrial’ practices of some large charities.
• Exchange of personal data.• Inadequate opt-outs.• Agencies unsupervised.• CEOs and Boards failed to
provide strategic oversight.• Ends justified means, core
values compromised.
Copyright: Andrew Hind
And then there was Kids Company
• Lack of board rotation• Insufficient board challenge• Over-dominant CEO• Financial policies ignored• Demand-led strategy• No proper focus on user impact• Complicit donors• No whistle-blowers• Inadequate regulatory oversight
Copyright: Andrew Hind
Kids Company’s woes were on front pages for months – Guardian 29.10.15
Copyright: Andrew Hind
Open season on charities in the media - eg. Age UK criticised in The Sun 9.2.16
Copyright: Andrew Hind
Help for Heroes criticised in MoS 7.2.16
Copyright: Andrew Hind
Criticism of high salaries – Times 17.12.15
Copyright: Andrew Hind
No let up every weekend – 29.5.16
Copyright: Andrew Hind
Public trust in charities appears to finally be falling
• Until now, research has repeatedly shown that public trust was holding up
• Charity Commission surveys
Source: Ipsos MORIDon’t trust them at all
Trust them completely
1%
6%
3%3% 3%5%
23%
10%
5%
19%20%
2%1%4%
18%
11%
8%
22%22%
0 1 2 3 4 5 6 7 8 9 10
20052008
2005 Mean Score: 6.3 2008 Mean Score: 6.6And improved in 2012: 6.7
Public trust in the distinctive brand of charity
Copyright: Andrew Hind
Public trust appears to be falling
• CC 2016 research is in the field right now
• Report in November 2015 from nfpSynergy suggests that only 48% of people trust charities.
• A decline of 18 points since 2013.
Copyright: Andrew Hind
February 2016 research by YouGov
• Only 38% of people say charities are trustworthy (down from 54% in 2013)
• 45% say charities have high ethical standards (56%)
• 67% believe fundraising criticism was fair
• 62% say large charities are damaging sector’s image
• Charities complacent in responding to accusations of high pay (72%) and aggressive fundraising (61%)
This leads us to an inescapable conclusion:
‘Unconditional’ public trust can no longer be taken
for granted.
Copyright: Andrew Hind
Future developments• Launch of the Fundraising Regulator, to replace
the FRSB, and introduction of the Fundraising Preference Service.
• Charities Act 2016.• Publication of CC20.• NCVO opt-in working party.• New European data protection law requiring
unambiguous consent from donors by 2018 (EU General Data Protection Regulation – GDPR)
Copyright: Andrew Hind
First line of defence - trustees• Charities must re-establish the appropriate
balance between their right to ask for funds and the public’s right to say no.
• Does your board own the fundraising practices being undertaken in your charity’s name?
• How are you making sure your charity’s values are always non-negotiable?
• Have you read and actioned CC20 – Charity fundraising: a guide to trustee duties (published only this week)?
Copyright: Andrew Hind
First line of defence - trustees
• The six principles in CC20 – June 2016Planning effectivelySupervising your fundraisersProtecting your charity’s reputationComplying with laws and regulations re
fundraising (eg DPA, Charities Act 2016)Following the Code of Fundraising PracticeBeing open and accountable
Copyright: Andrew Hind
Second line of defence – the new Fundraising Regulator
• Recommended in the Etherington report• Going live in ‘early summer’- ie next month• A last chance for self-regulation• Controlling the Fundraising Code of Practice• Introducing the Fundraising Preference
Scheme• Bigger budget, tougher powers and sanctions• But still a ‘voluntary’ system
Copyright: Andrew Hind
The proposed FPS• Proposed in Regulating Fundraising for the Future
because Mrs Cooke couldn’t stop the deluge.• A ‘reset’ mechanism to stop all fundraising
communications (n/a for those under £1m).• In: addressed mail; phone (incl mobile); email.• Out: unaddressed mail; door-to-door; face-to-face.• FPS working group trying to achieve ‘granularity’.• Might cost charities £2bn if implemented; what
would cost be if not implemented?
Copyright: Andrew Hind
Third line of defence – the Charity Commission
• The Commission will engage with serious fundraising matters referred to it by the Fundraising Regulator.
• Will continue to sharpen up guidance.• Public trust in charities depends in large
part on public trust in the regulator.
Behaviours to restore public trust• Respect the right of the public to control how
they wish to engage with us.
• Always focused on the charity’s values.
• Transparent and accountable.
• Independent, non-political.
• Brave and innovative.
• Collaborative, not competitive.Copyright: Andrew Hind
The future direction of
fundraising - retaining
public trust in charities
Andrew Hind