Community Interest Company committed breaches of Code of Fundraising Practice, Regulator finds

Community Interest Company committed breaches of Code of Fundraising Practice, Regulator find

The Fundraising Regulator ('the Regulator') has concluded an investigation into the Community Interest Company ('CIC'), 'We R Blighty', determining that the organisation engaged in unauthorised fundraising activities and used materials likely to mislead members of the public. 

In parallel with the regulatory investigation, the organisation and two of its directors have been convicted of illegal street collections and ordered to pay fines and costs totalling £3,640.

The investigation found that the CIC conducted street fundraising in several locations, including Kent and London, without securing the necessary permissions from local authorities in contravention of the Police, Factories (Miscellaneous Provisions) Act 1916.

Additionally, the Regulator identified concerns regarding the organisation's fundraising materials, which appeared to imply an affiliation with a nationally recognised veteran's charity.  As no such affiliation exists, the Regulator concluded that the messaging risked confusing or misleading donors.

Further concerns were raised in relation to instances of unprofessional and aggressive behaviour by individual fundraisers representing the CIC.  According to the Regulator, the organisation lacked sufficient systems and oversight to monitor the conduct of its fundraisers or ensure compliance with the Fundraising Code. 

In total, nine breaches of the Code of Fundraising Practice were identified.  The Regulator issued a series of recommendations including:

• Strengthening training and supervision procedures for fundraisers
• Implementing a formal and accessible complaints procedure / process
• Reviewing and clarifying all public communications to ensure the organisation's affiliations are clear

Face-to-face fundraising: What are the rules?

Street collections for cash in the UK are governed by a combination of old statute, local authority regulations and sector self-regulation.  

The Police, Factories (Miscellaneous Provisions) Act 1916 ('the Act') is the legislative foundation for the regulation of street fundraising.    The Act makes it an offence to hold a street collection, including collecting money or selling articles for charitable purposes, without the permission of the relevant local authority.  The Act does not apply to modern day direct debit fundraising (or 'chugging') as no physical money is collected.

A 'street' is defined under the Act to include:

 '… any highway and public bridge, road, lane, footway, square, court, alley, or passage, whether a thoroughfare or not' (Section 5(4) the Act).

While 'public place' is not defined in the Act, subsequent case law has interpreted this to mean any place which any section of the public has access to (whether by payment or not) as of right, or as a result of express or implied permission. This, therefore, technically includes ticketed events, however, typically permission for collections on private land should be sought from the landowner. 

The term 'street collection' generally covers the below activities done for charitable benefit:

• Shaking buckets
• Selling 'articles' like badges or flowers
• Any solicitation of money in a public street or place

Street collecting in London requires a permit or licence from:

• Common Council of the City of London, (if street collecting in the City of London); or
• Mayor's Office for Policing and Crime (if street collecting in the London Metropolitan Police District (LMPD).

Regulations 

Many councils have adopted model regulations in relation to street collections and they include: 

• An application for a permit must be made well in advance of the collection and no collection shall be made except upon the day and between the hours stated in the permit;
• The council may place various limitations on where and when the activity can take place when granting a permit; 
• All street collectors must have written authority of the promoter of the collection and produce it to an officer of the licensing authority, or the police, if requested;
• All collectors, while collecting, must remain stationary;
• Collectors should not be paid; and
• A notice providing details of the collection (including the amount collected and expenses occurred) needs to be published in a local newspaper.

The Code of Fundraising Practice (the 'Code') also sets out additional standards that apply to fundraising conducted by charitable organisations and third-party fundraisers in the United Kingdom in ensuring fundraisers are visible and identifiable and requiring charities to monitor the fundraising activity of any paid third party. 

The conclusions of the Regulator's investigation serve as a clear reminder that all organisations engaged in public fundraising – whether charities, CICs or third-party fundraisers – must comply fully with the legal and regulatory framework that governs street collections. Adherence to the rules safeguards not only the public, but also charities themselves, ensuring the safety of fundraisers and upholding trust in the charitable sector.