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June 6, 2025

New Code of Fundraising Practice for Charities

A new Code of Fundraising Practice comes into effect on 1st November 2025.  It applies to fundraising conducted by all charitable institutions and third-party fundraisers in the UK.

In Scotland, fundraising self-regulation operates within a different system and is enforced differently to England, Wales and Northern Ireland.  (Fundraising by charities registered only in Scotland with OSCR, the Scottish Charity Regulator, is subject to adjudication by the Scottish Fundraising Adjudication Panel).  But the new Code, published by the Fundraising Regulator (FR) only last month, is applicable here and across all countries in the UK.  

While the FR does not have any statutory powers to enforce or adjudicate in Scotland, it can publish reports on breaches by Scottish charities or refer any complaints or concerns to the relevant charity regulator or other regulator, such as the Information Commissioner’s Office (ICO) who enforces data protection legislation.

A different approach

The new Code adopts a ‘principles-based’ framework to setting standards for fundraising. 

It is considerably shorter than the existing code, and replaces a number of very specific rules, many of which re-stated legal requirements in other areas of law, with a set of broader and more general rules, presented alongside ‘signposting’ to legal requirements or guidance issued by other regulators.  For example, detailed requirements about compliance with data protection laws have been removed, with the new Code instead retaining only a summary.

Standards relating to data protection are mostly in section 3 of the new Code.  It deals with ‘direct marketing’ which, as defined by the Data Protection Act 2018, includes ‘communication (by whatever means) of advertising or marketing material directed to particular individuals’.  Case law and the ICO’s guidance have always been clear that this legal definition should be interpreted widely to include:

  • fundraising approaches.
  • promotion of goods and services (including free events).
  • promotion of a voluntary organisation’s aims and objectives.

 

Section 9 of the new Code sets out additional requirements for fundraising communications and advertisements (including for fundraising over the telephone, by post, email and mobile messages).   Already organisations are required by law to comply with PECR, data protection legislation which covers marketing communications sent by “electronic means”, for example, email, text, live telephone calls (where the number is registered with the Telephone Preference Service (TPS)) and automated calls, as well as other electronic messaging (for example, via social media).   For several years now, the ICO has regularly imposed significant fines on organisations for non-compliance with PECR, and the amount of those fines will increase substantially once the new Data (Access and Use) Bill is enacted later this year. 

Why compliance with the new code and data protection compliance is important for Scottish charities

There are many and varied reasons why charities use personal data, not only for fundraising.  It is used to provide services and support and often to run as an organisation by processing information about staff, volunteers and trustees. 

But one thing all charities have in common is the need to safeguard their ethical reputation to ensure they retain public support and the trust of their service users.   Failure to comply with the fundraising code or data protection legislation, and any resulting regulatory action such as a public reprimand or fine, could have a detrimental impact, leading to a loss of trust and potentially a loss of fundraising income.

Free webinars on the new Code of Fundraising Practice

Navigator will run a free webinar for charities on the new Code of Fundraising Practice for Charities on Wednesday 6th August 10-11am, with an opportunity to ask questions about data protection compliance arising from the new rules. To register please click here.

Scottish independent schools which are charities are invited to register for a separate event on the new Code which is on Monday 7th July 10-11am. To register, please click here.

 

If you have any questions on any of the issues raised in the above article, please contact Sean Morris

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Floor 3
1-4 Athol Crecent
Edinburgh
EH3 8HA