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BUSE COMMISSION LAYS OUT RULES FOR NEW FUNDRAISING BODY 30/01/04
 
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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