Fundraising Regulator issues guidance for use of artificial intelligence in fundraising

Fundraising Regulator issues guidance for use of artificial intelligence in fundraising

The Fundraising Regulator has issued comprehensive guidance to support charities and other fundraising institutions in the use of AI in their fundraising activities.  The guidance is designed to help organisations align with the Code of Fundraising Practice when exploring, preparing for, and using AI in both direct and indirect contexts.  The key points to note are as follows:

Accountability and Oversight

Charities remain accountable for all AI use in fundraising, including outputs generated by third parties.  Therefore, trustees must exercise active oversight, ensuring the board is engaged with decision-making around AI adoption and governance. 

Risk Assessment

Before using any AI tool, charities and fundraising institutions are encouraged to conduct 'proportionate risk assessments'. According to the guidance, this will help prevent and identify issues including errors and input biases.   

Policy and Preparation 

The guidance strongly recommends that charities and fundraising institutions should adopt a carefully considered AI policy that sets out how AI will be used in fundraising.   Transparency in AI use is encouraged, and the guidance recommends publishing the policy. In preparation, the guidance encourages organisations to pilot and test AI tools before wider deployment. 

Data Management and Security 

The guidance stresses the importance of understanding how AI tools use, store and share data and whether or not it is a closed loop system.  Charities should continually review and update data protection and cyber security measures, ensuring their policies clearly explain how personal data may be processed in relation to AI use.  For more information on this, the Information Commissioner's Office offers further guidance on AI use and data protection.

Legal Assurance

The guidance emphasises that charities should ensure that any AI use and content used in their fundraising activities are lawful, accurate and that the organisation holds the right to use it.  

The Fundraising Regulator's guidance offers a structured framework to help charities navigate the risks and opportunities presented by AI in fundraising and emphasises the importance of complying with established fundraising standards as new tools are developed and utilised.

For further guidance on any of the above topics, speak to Chris Priestley (chris.priestley@withersworldwide.com ).