Charities raising funds by third party involvement
Produced in partnership with Francesca Quint of Radcliffe Chambers
Charities raising funds by third party involvement

The following Private Client practice note Produced in partnership with Francesca Quint of Radcliffe Chambers provides comprehensive and up to date legal information covering:

  • Charities raising funds by third party involvement
  • Professional fundraisers
  • Commercial Participators
  • Trustees of charitable institutions, etc
  • Institute of Fundraising (IOF) and and the Fundraising Regulator

Fundraising can be a science, a set of specialist skills and knowledge, and/or a profession. Many charities have fundraising staff on their payroll and many also employ external consultants, ie ‘professional fundraisers’ to raise funds for them. Sometimes charities enter into arrangements with ‘commercial participators’—usually companies or firms which agree to provide some financial benefit to the charity or charities in the course of selling their own goods and services, and use the charitable contribution as part of their promotion.

The Charities Act 1992 (CA 1992) as amended by the Charities Act 2006 (ChaA 2006) and regulations made under it contain some fairly detailed obligations applying to professional fundraisers and commercial participators and fairly specific restrictions on their agreements with charities. These are designed to protect the charity rather than the other party.

Thus an injunction may be granted on a charity’s application to restrain unauthorised fundraising and/or the repetition of an incorrect or non-compliant statement that charitable contributions are to be made by a trader, and where there is a non-compliant agreement with a charity in place, the primary sanction is that the agreement cannot be enforced against the charity. Specifically, the professional fundraiser or commercial participator concerned may not be able to obtain any remuneration or expenses.

Failure to comply with certain key regulations is also an offence. In addition, it is an offence

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