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| BUSE
COMMISSION LAYS OUT RULES FOR NEW FUNDRAISING BODY |
30/01/04 |
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The
development of a new self-regulatory body for fundraising has moved a step
closer with its recommendation being included in the conclusions of the
Buse Commission.
Phase Two of the Commission's report, tackling the proposed framework and
governance structure of a reformed system, calls for the establishment of
a Charitable Fundraising Standards Board (CFSB) based on the model of the
Office of Fair Trading (OFT).
The report comments: "A new independent body would be in a position
to comment on fundraising activities from the donor’s perspective
informed by the fundraising sector.
"A positive outcome of self-regulation was identified as the potential
to enable a more robust defence to be given of acceptable practice at the
same time as encouraging regulators to be more rigorous in their pursuit
of malpractice."
The OFT's principles of proportionality, accountability, consistency, transparency
and targeting are felt by the Commission to be the right foundations for
charity self-regulation, but it noted that the voluntary sector's differences
from the private sector should also be taken into account.
The report also states that existing umbrella groups, such as the Institute
of Fundraising and Public Fundraising Regulatory Association (PFRA) should
act as sponsors to the new organisation, and have members on its board along
with representatives from the National Consumer Council, Consumer Association
and Citizens Advice.
It calls for the CFSB to be in a position to enforce codes of practice,
which could be drawn from existing documents by the Institute of Fundraising
and PFRA, and ensure its coverage is much wider than the average membership
body.
To this end, its recommendation is that chief executives or trustees of
charities would sign an annual statement of commitment to the codes of practice,
and that targets for membership be set at around 2-3,000 groups, or 25%
of public fundraising.
The CFSB would also issue a Public Promise framework - a set of statements
similar to the Institute's current Donor's Charter to act as a safety net
for the public. A second branch of the group's work would be to act as an
adjudicator on complaints made by members of the public.
The report comments: "Donors should not be expected to access complex
codes of practice if they have issues or complaints against a charity. Instead,
the donor would rely upon something more generic, or a public promise. It
may be possible for the Donor’s Charter to be developed to form this
promise. The outcome must be concise and capable of interpretation for adjudication
purposes."
According to the Commission, funding this whole process should be split
between the government, major grantmakers, and charity members of the body
- although it believes the government should fund it entirely in year one.
The Institute of Fundraising welcomed the recommendations, announcing plans
to research membership issues and offering to provide the CFSB with office
space.
Chief executive Lindsay Boswell saying: “This is a constructive and
thoughtful report and we are pleased to see the recommendations are based
upon the models of best practice promoted by the Office of Fair Trading
(OFT).
"The Institute now intends to take these findings and talk to the Home
Office about providing support for the implementation stage. It is vital
that the sector has a robust model of best practice and that fundraising
organisations not only take part but communicate that they follow best practice
to their donors, supporters and beneficiaries.”
However, it did state that it "remained to be convinced" about
the validity of fundraising groups having to help fund the CFSB through
membership fees.
The Charity Commission also backs the proposals, with Rosie Chapman, director
of policy and strategy commenting: "We wholeheartedly support the concept
of effective, credible self-regulation of fundraising.
"Rodney Buse has achieved a balanced set of recommendations which create
a solid foundation for the sector to take forward. It's vital that the final
model for self-regulation puts the public first - both in terms of accountability
and accessibility, and we look forward to the development of this initial
framework by the sector with these principles in mind."
The PFRA also "warmly welcomes" the plans and says it "looks
forward" to working with the CFSB, saying: "We particularly support
the introduction of a light touch regulatory framework and are pleased to
see the input from experts in the field.
"However there are important points of detail yet to be decided and
the PFRA looks forward to working with the CFSB and other bodies to ensure
the highest standards are maintained in all areas of fundraising."
The proposals are now open to consultation until the end of April, and are
available to view at www.busecommission.org.uk
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