Charity Commission launches Trustee Quiz

Back in November 2020, the Charity Commission published a series of bite-sized guides for trustees. They were designed to support trustees as they manage the demands of running a charity.

The guides, listed below, cover the basics of charity governance that all trustees should be familiar with.

• Delivering purpose – advice on how to use your charity’s governing document, how to deliver on your charity’s purposes, and the law. 

• Managing finances – advice on how to ensure your charity’s money is safe, properly used, and accounted for.

• Conflicts of interest – advice on how to identify and deal with conflicts of interest in your charity.

• Making decisions – advice on how to make valid trustee decisions that are in your charity’s best interests

• Reporting information –advice on how and what you need to report to the Commission.

• Safeguarding people – advice on your responsibilities to keep everyone who comes into contact with your charity safe from harm.

• Political activity & campaigning – advice for charities that want to support, or oppose, a change in government policy or the law.

Trustee campaign

In March 2021, the regulator launched a trustee campaign to promote the 5-minute guides.

It published five animated adverts that prompted trustees to consider their understanding of key responsibilities by posing questions connected to each guide.

Next phase

Last month, the Commission launched the next phase of the campaign - a Trustee Quiz, which enables trustees to test their knowledge of their duties and responsibilities.

The quiz consists of a series of multiple-choice questions based on everyday scenarios that trustees may encounter at their charity and covers a range of topics, such as conflicts of interest and safeguarding.

It takes around three minutes to complete, and feedback is provided for each question.

Users are sign-posted to user-friendly resources, including the Commission’s suite of 5-minute guides to strengthen their knowledge.

Research findings

The quiz was launched in response to the findings of the Charity Commission’s 2022 Charity Trustee Research.

The research found that around 98% of trustees feel ‘very’ or ‘somewhat’ confident in managing or governing their charity, but when questioned on basic role requirements, on average, trustees answered just 7 out of 10 questions correctly - demonstrating a knowledge gap that could lead to unintentional governance failings.

Knowledge gaps were identified in the following areas:

• Navigating regulations

• Charity paperwork

• Finances

• Delegating responsibility

Upskilling

The quiz is intended to encourage trustees to think again about what they know and inspire upskilling, by revisiting the guides and reaching out to the commission for guidance.

Paul Latham, Director of Communications and Policy at the Charity Commission, commented:

“The 700,000 trustees in England and Wales provide a vital service, not just to their individual charity, but to society more widely.

As regulator, we have an important role in supporting them to do the best job possible, ensuring they have the resources they need to fulfill their legal duties and responsibilities with confidence. Our trustee campaign aims to do just that, engaging trustees with thought-provoking content, and encouraging them to reflect on their skills and knowledge and whether there are any gaps in their awareness that our guidance can help fill.

We encourage all trustees to take our new quiz – it’s quick and designed to be fun, but it will also help you assess your own knowledge and take action to address any areas in which you might need more support or learning.”

Looking for a new trustee with fundraising expertise? We can help. Give us a call on 0203 750 3111 or email info@bamboofundraising.co.uk to get the process started.

Introducing the Legacy Showcase

Legacy giving is one of the biggest fundraising success stories of recent years. Income has quadrupled over the last 30 years, peaking at £3.7bn in 2022 - the largest total ever recorded.

And the upward trajectory is set to continue.

According to Helen Hamer, Senior legacy marketing manager at Macmillan Cancer Support, the legacy market is set to reach £5.16bn by 2030.

A sizeable opportunity

Research by Remember a Charity found that 35% of over-40s in the UK would “be happy to” leave a gift to charity. However, only 6% currently do. 

This presents charities with a huge opportunity. But, as Hamer says, ‘there's also significant potential for a huge amount of missed income unless we as a sector do more.”

The Legacy Showcase

In a bid to champion legacy fundraising and inspire innovative legacy campaigns, Legacy Futures in collaboration with Showcase of Fundraising Innovation and Inspiration (SOFII) and the legacy consortium, Remember A Charity have launched The Legacy Showcase – Campaigns We Love!

The free online resource showcases some of the best examples of legacy marketing creativity and innovation from around the world.

The campaigns are presented and dissected by champions from the field of legacy fundraising, via a series of short videos. Each champion talks us through their favourite legacy campaigns, and explains what makes them powerful, innovative, and inspirational.

They also share insights and best practice tips to inspire the creation of more impactful and effective campaigns.

Ashley Rowthorn, CEO of Legacy Futures, explains the thinking behind the initiative: “The legacy market is growing fast with more charities than ever recognising the value of this form of income for a sustainable future. So too, the market is becoming increasingly competitive and legacy campaigns will need to work harder and harder to gain cut through.  With this Legacy Showcase we want to champion great campaigns created by legacy fundraisers all over the world to in turn inspire more creativity and innovation in the future. I hope this collaborative effort will provide an invaluable resource that many legacy fundraisers will turn to for ideas and lessons to inform their own work.”

What you can expect

The campaigns featured on The Showcase are diverse in content and approach.

For example:

Dr Lucy Lowthian, Gifts in Wills Consultant at Legacy Voice, shares her thoughts about using positivity and upbeat energy, citing a Battersea Dogs & Cats Home TV ad as a great example with its ‘life rather than end of life’ messaging. While Emma Hazlewood, Head of Legacy Development at The National Trust, praises Centrepoint for including beneficiaries in the building of their campaign, resulting in powerful messaging that challenges perceptions and builds strong empathy.

Nominate a legacy campaign 

The Legacy Showcase aims to provide a living online collection that will grow over time to share inspirational legacy campaigns from charities and nonprofits around the world. 

Has a legacy campaign inspired you? Maybe you’re proud of one you’ve worked on at your charity. 

If so, send in a nomination and it might be featured on the Legacy Showcase wall of fame.  

On the hunt for a legacy fundraiser? You’ve come to the right place. Give us a call on 0203 750 3111 or email info@bamboofundraising.co.uk to get the conversation started.

New survey highlights the importance of donor loyalty

Every charity wants loyal donors; people who are passionate enough about a cause to give and continue giving.

However, many charities are so focused on acquiring new donors, they forget to nurture the ones they already have.

The findings of a three-year study by research-based consultancy About Loyalty highlight the importance of a solid donor retention strategy. They suggest that investing in donor loyalty could add thousands, if not millions of pounds to fundraising income.

Intrigued? Let’s take a deep dive to find out more.

The case for growing supporter loyalty

The report, titled ‘the definitive case for growing supporter loyalty’ summarises the findings of the largest ever research study into supporter loyalty and its impact on giving. It involved 30+ charities; 50,000 donors, and took place over a period of three years.

How it worked

Participants were presented with a series of statements relating to ten emotional drivers of loyalty to understand the role each plays in influencing loyalty and future support.

• Commitment to the cause and charity

• Engagement with the charity’s activities

• Knowledge of the issue the charity is working to address

• Perceived performance of the charity

• Personal connection to the charity or the issue it is addressing

• Perceived risk if the donor were to stop supporting

• Satisfaction with the charity’s communications and fundraising (and the wider supporter experience)

• Social capital gained by supporting the charity

• Trust that the charity does what it promises, in an ethical way

• Belief that the charity shares the donors’ values                                            

Three drivers were identified as being key to building behavioural loyalty across all causes and forms of charitable giving: Commitment, satisfaction, and trust.

Researchers used the data on the three drivers, along with financial data (gathered through tracking participants’ giving behaviour) to calculate an overall measure of loyalty (a Loyalty Score) for each donor in the study. The score ranged from one (lowest) to seven (highest).

They used the scores to quantify the impact of the three drivers on future giving and found that an increase of just one point in supporter loyalty can lead to:

• 15% more retained donors over three years

• 20% more income over three years

• 9% more people pledging to leave a legacy

To put this in context, the results of the study suggest that, for every 100 donors, a one-point increase in loyalty could lead to an additional £1,417 over the next three years. Extrapolate that out to 1000 donors and that’s an extra £14,173.40. For 70,000 donors, that equates to a cool £1 million.

That’s not a bad return on donor loyalty investment.

Loyalty in action

The analysis highlights the critical role supporter loyalty plays in driving retention and long-term giving. It’s led some of the participating charities to review their existing donor retention strategies and embed new practices to make supporter loyalty a priority.

For example:

• Children’s charity Barnardo’s wanted to improve loyalty among new supporters and face-to-face recruited donors. They did this by overhauling their welcome programme. Rebranding it as ‘Take my Hand,’ it focuses on the benefits that donations bring to young people’s lives.

• The Woodland Trust is using loyalty to improve its organisation by breaking down silos across charity departments. The charity has put loyalty at the “front and centre” of its work, by creating shared targets and key performance indicators that focus on strengthening supporter satisfaction, commitment, and trust. “We should always start with loyalty,” says Woodland Trust Supporter Journey Manager David Reeves. “Before contacting supporters, the team need to understand what drives loyalty and act towards the single common goal of building and growing it.”

• Cancer Research UK has created a ‘centre of expertise’ to monitor loyalty levels among its supporters. It measures what supporters want from their relationship with the charity to better tailor communications with each donor. “Being able to measure loyalty has helped us understand which areas and messages we needed to focus on within the myriad of journeys we’ve been pulling together,” says CRUK’s Loyalty and Cultivation Senior Marketing Manager Sarah Maltby. “It’s helped our decisions in what to prioritise when it comes to technology developments around channels and personalization. It’s helped us to demonstrate the value of loyalty to our income generation as well as to our supporters.”

Looking for a fabulous fundraiser to focus on donor loyalty? We can help. Give us a call on 0203 750 3111 or email info@bamboofundraising.co.uk to get the ball rolling.

New guidance helps charities tackle misconceptions

Myths and misconceptions have long plagued the charity sector. In an attempt to set the record straight, the Institute of Chartered Accountants in England and Wales (ICAEW) has published a new guide, Dispelling Common Myths About Charities.

The comprehensive document explores ten myths relating to how charities are run, how they carry out their work, how they’re funded and staffed, and whether they’re liable for tax (among other issues) and offers practical advice to help charities tackle them and educate donors.

Here’s a rundown of the myths and the ICAWE’s recommendations:

1.     Charities spend too much money on fundraising

Recommendation: “Developing and explaining a fundraising strategy to justify expenditure will show how the charity expects to fund its work. Trustees and senior managers should think clearly about what level of investment will be needed and where it will come from.”

2.     Charities should not make a surplus or build up cash reserves

Recommendation: “Charities should ensure their reserves policy is easy to understand and linked to their strategic plan and risk management strategy. Far too frequently, more focus is placed on budgeted income, future income streams and the surplus or deficit for a single year. Reserves end up being considered only once a year when the reserves policy is reviewed as part of preparing the statutory financial statements. In addition, liquidity and treasury management needs to go hand in hand with the reserves policy.”

3.     Charities spend too much on high paid executives

Recommendation: “Charities can ensure executive pay is proportionate by benchmarking remuneration against similar roles in organisations that are comparable in size, sector, and location.

“Disclosures relating to remuneration and other benefits including expenses paid to trustees are required by charity accounting and reporting rules. Charities should therefore aim to explain their remuneration policies and senior management pay in the context of the executives’ responsibilities to maintain public confidence in their work.”

4.     Charities should not undertake commercial activities

Recommendation: “Charities often introduce commercial activities to diversify their income streams and avoid becoming too reliant on grants and donations. When charities decide to trade, trustees and management should consider whether a trading sbsidiary is required and how they will use it. The charity should develop a business plan and assess the demand for their proposed goods and services. Trustees must consider the viability and sustainability of the subsidiary’s business model and the set-up costs before they decide on the investment.”

5.     Charities should run and be staffed by volunteers

Recommendation: While volunteers are the backbone of charities such as the RNLI, and the Samaritans, even these charities are not able to operate without full-time staff.

“Charities should have a clear strategy where resources should be spent – how many staff to employ, the number of volunteers that will need to be recruited and trained, or a combination of both.”

6.     Charities spend too much on overheads

Recommendation: Charities should have a clear grasp of their administration and other related costs, and the impact they’re having on efficiency, impact, transparency, governance, and leadership. This can help trustees identify where savings can be made/further investment is required.

7.     Charities don’t have to pay taxes so need less money

Recommendation: Charities should understand (and be able to explain) their tax situation in terms of the contributions they make, and the tax reliefs and exemptions they’ve been granted.

“They should regularly review their tax strategy to ensure they’re claiming the relevant tax reliefs so they can maximise the funds available for their work.”

8.     You need professional qualifications to become a charity trustee

Recommendation: While professional qualifications aren’t essential to trustee boards, diversity is.

Trustees should identify imbalances or gaps in trustees’ backgrounds and perspectives and think creatively to fill the gaps, for example by inviting service users and people with relevant lived experience to become trustees. 

9.     Charities are less vulnerable to fraud than other organisations

Recommendation: “Trustees need to recognise their charities can be vulnerable to fraud and develop an effective culture of prevention. Every dimension of fighting fraud – deterrence, detection, and response – requires an effective anti-fraud culture at its foundation.

Trustees should ensure proper internal financial and data controls are in place and that both their design and operation are regularly reviewed, and new controls implemented where necessary.”

10.  Charities should not engage in campaigning and political activity

Recommendation: Charities have a long history of campaigning and political activity.

The issues tackled by charities, such as poverty, often require legal or structural changes that can best be influenced by campaigning activities.

“When charities decide to engage in political activity, they should ensure that they act within the charity’s governing document and in the charity’s best interest, weighing up the potential risks or benefits of speaking up – or not speaking up - on political issues relating to their cause.”

Need an extra fundraising bod to implement some of these recommendations?  We can help. Give us a call on 0203 750 3111 or email info@bamboofundraising.co.uk to find out how.

The Fundraising Regulator: Should your charity register?

If you work in the third sector, you’ve probably heard of the Fundraising Regulator. But what is it? How does it work? And should your charity register with it?

What is the Fundraising Regulator?

The Fundraising Regulator is an independent organisation that provides accountability and sets fundraising standards (such as the Code of Fundraising Practice), for organisations in England, Wales, and Northern Ireland to follow.

Scottish charities are primarily managed by the Scottish Charity Regulator.

The Fundraising Regulator also maintains the Fundraising Directory and investigates complaints made about fundraising and fundraisers.

Do charities have to register?

It’s voluntary to register with the Fundraising Regulator, but it’s good practice to do so, as it shows your charity is committed to legal, open, honest, and respectful fundraising.

Once registered, charities agree to follow the Code of Fundraising Practice.

How do charities register?

Applying to register is quick and easy. All you have to do is fill out a form on their website and they’ll do the rest.

In terms of the registration fee, it depends on how much you spend on fundraising each year. If you spend less than £100,000, it’s £50. If you spend above that, the fee is higher, and there’s a yearly fundraising levy on top to keep the Fundraising Regulator running.

The costs are listed on their website.

The Fundraising Regulator has plans to increase these costs in the coming years, to better support fundraisers, but they will still be tiered, meaning the amount you pay depends on your fundraising budget.

What are the benefits of registering?

Once registered, you can use the fundraising badge (an icon that says ‘registered with the Fundraising Regulator’) on all your fundraising materials. This is a great way to demonstrate to the public that you’re a trustworthy and legitimate organisation.

Considering charity scams increased during the COVID pandemic, it’s more important than ever to show potential donors that their money is safe in your hands.

As well as the badge, every charity registered with the Fundraising Regulator is added to their Fundraising Directory.

Corporates often check the directory for charities to support, so registering could bag you a partnership.

Registered charities can also access fundraising support, training, and advice. Some of it is generic and available for everyone, but some can be tailored directly to your organisation. Either way, it can help you level up your fundraising potential.

Looking for fundraising talent? That’s our area of specialty. Give us a call on 0203 750 3111 or email info@bamboofundraising.co.uk to find out how we can help.

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