Getting your fundraising ready for the new Code of Practice

When I was first introduced by my dad to the lows – and occasional highs – of following Scottish rugby in the 1970s, one of the leading lights of both the Scottish national team and the British Lions was a short-in-height prop called Ian McLaughlin. He was better known by his nickname ‘Mighty Mouse’ due to his extraordinary power-to-weight ratio and adeptness at outmanoeuvring opposing tight-heads that rendered him a potent force in close quarters.   

After a lengthy two-year consultation period with the sector by the Fundraising Regulator, the long awaited new Code of Fundraising Practice was published by the Regulator on 28 April. It will come into effect on 1 November 2025, giving charities a six-month window to prepare. The new code is 45% shorter than its predecessor and Gerald Oppenheimer, Chief Executive of the Fundraising Regulator describes this as “clearer, shorter and easier to understand – without sacrificing the specificity and clarity of the current code”. The new code – like Mighty Mouse Ian McLaughlin – might be shorter, but no less powerful because of that.

The changes to the code can be summarised in four key themes. Firstly, as has long been trailed in advance, the new code has moved from a prescriptive rules-based wording to a principles- based approach. This should make it easier to apply high standards to fundraising practice and apply the principles across different types of fundraising activity. This should, in theory, empower fundraisers to apply judgement in scenarios they face and we will explore a case in point later on. 

The code should be simpler to use. Being 45% shorter, its brevity should be easier to navigate especially – as the Regulator highlights – for smaller organisations or those new to fundraising. It has achieved this by streamlining the previous code, and offering clarity of wording and improved signposting to legal guidance from other bodies such as the Charity Commission, the Office of the Scottish Charity Regulator or the Information Commissioner’s Office (ICO.  

The new code contains strengthened protections for fundraisers. Fundraising organisations must now take reasonable steps to protect fundraisers from harm or harassment while fundraising, and ensure that fundraisers feel supported and able to raise concerns. 

Innovation has also been a guiding principle throughout the review process. The Regulator wanted to support and not restrict innovation. They know that charities are exploring new ways to engage with donors to raise income vital to meeting charities’ missions. They also acknowledge that the fundraising landscape has changed significantly since the last code update in 2019, with developments in technology, societal changes and updated legislation. With this in mind, the regulator was mindful that the new code needed to ensure high standards in fundraising could still be met while allowing and enabling innovation. 

However, some – particularly those within the digital fundraising community – have expressed frustration with the new code, arguing that it fails to adequately address the evolving realities of digital engagement. Specifically, members of THINK’s Digital Forum feel that the update has not fully taken into account the rapid emergence of artificial intelligence (AI) and its impact on social media platforms, online fundraising tools and data-driven strategies that will now be central to many campaigns.

There is concern that the lack of specific guidance around ethical AI use, digital donor journeys and platform accountability creates ambiguity for fundraisers who are striving to do their jobs ethically. Without a more comprehensive position on these technologies, the code could risk stifling innovation, increasing compliance burdens and leaving organisations without the clarity they need to operate confidently and ethically in a world where AI will be woven into everything.

As mentioned above, the new code takes a principles approach, and it may help to look at an example recently discussed by fundraisers around the area of how often you can communicate with donors. The new code has removed the previous wording of “overwhelm donors” and new Rule 8.4.4 states “You must be able to justify how often you contact people about fundraising, balancing the need to communicate with not bombarding people.”  So, on the one hand, it may appear that in defining ‘bombarding’ can be like the old saying “How long is a piece of string?”.

But in the world of a principles-based approach, this relativism provides a helpful framework. As one experienced fundraising compliance manager offered up, the key here is in your charity’s mission. If you were, for example, an international aid agency and there was a current emergency due to famine or an earthquake, then it could be perfectly reasonable and justifiable to send three communications in a single week. But at other times in the year, or indeed doing that every week, would not be justifiable. Context is everything.  

With this principles-based approach, the key will be like the old maths teacher advice: “Show your workings”. So it’s really important to undertake some risk assessment and justification of how you arrived at your decision.

Sticking with the case above, document that process in writing: what was your normal pattern of communications and normal complaints and unsubscribe rates? What was it that caused you to actively choose to change your pattern? Are there any significant adverse changes to complaint rates or unsubscribe rates? And are there significant changes in income after you have undertaken those communications?

Another change to the code worth highlighting is with regard to the payment of fundraisers and the hotly debated use of commission. The old code talked in terms of not paying fundraisers excessive amounts and putting a cap on how much you pay fundraisers, or using a reducing sliding scale to avoid excessive pay. The new Rule 2.4.1 says “You must give appropriate consideration to the approach you choose for paying fundraisers and whether this fits the values of your charitable institution”.

Again, as with the example above regarding communications frequencies, the key will be in having something written down. If you are seeking to use commission, you should give written consideration to the values of the organisation, why are you considering paying commission, what the alternatives are to that course of action, and how your supporters might react. In some cases such payment may be appropriate – again, context will be everything.   

The implications for charities is that they have around six months to ensure they are compliant with the new code. The changes are not a radical change in direction and one would think that huge upheaval will not be the name of the day. But the key in a principles-based system will be justifying to yourself – as much as the Regulator should they come knocking – why you do what you do.  

So it’s time to review policies and processes, and identify any that need tweaking. Start by reviewing risk and tackle those areas first that could be considered high risk. In the example of communications with donors, are there periods where the risk of upsetting donors could be higher than normal? Do you have good reason to carry out your actions and if so, have it written up and saved as part of an internal risk assessment.  

Having reviewed policies and processes, there may be a training requirement across charities. Are all your fundraisers aware of the new code and the implications for them? Are they aware of any actions they need to take to maintain high-quality fundraising?

The Fundraising Regulator has a lot of resources to help charities ensure the way they fundraise complies with the new code. To guide you through the changes to the code section-by-section, the Fundraising Regulator has a helpful table of changes. They have also published a set of support guides in three key areas: due diligence, documenting fundraising decisions and monitoring fundraising partnerships.  

It’s sure to be a busy period in the run up to November and while charities are trying hard to raise every penny and pound in a difficult landscape, time is needed now to review practice to maintain high standards in fundraising. 

John Brady, THINK Consultant
June 2025

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