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Charities given 'last chance' on fundraising Charities given 'last chance' on fundraising
(35 minutes later)
Charities' fundraising activities could be controlled by law unless a new voluntary regulator succeeds in cleaning up the sector, a committee of MPs has warned in a report. UK charities' fundraising activities could be controlled by law unless a new voluntary regulator succeeds in cleaning up the sector, a committee of MPs has warned in a report.
They said it was the "last chance" for self-regulation of charity fundraising.They said it was the "last chance" for self-regulation of charity fundraising.
The new regulator is being set up following scandals last summer, when unscrupulous fundraisers were accused of targeting old and vulnerable givers.The new regulator is being set up following scandals last summer, when unscrupulous fundraisers were accused of targeting old and vulnerable givers.
MPs said most charities did not engage in such practices.MPs said most charities did not engage in such practices.
But the behaviour of some had damaged the reputation of all, they said.But the behaviour of some had damaged the reputation of all, they said.
Charity trustees who had permitted scandalous fundraising methods were either "incompetent or wilfully blind", the Public Administration and Constitutional Affairs Committee (PACAC) said. MPs on the Public Administration and Constitutional Affairs Committee (PACAC) heard that some charities, including Great Ormond Street Hospital and Macmillan Cancer Support, made it impossible for donors to block further communication from them or other charities.
Poppy seller's death Vulnerable and elderly people were seen as "fair targets" by some organisations, and information sold by some charities ended up in the hands of scammers, MPs were told.
Committee chairman Bernard Jenkin said: "This is the last chance for the trustees of charities, who allowed this to happen, to put their house in order. Charities 'apologetic'
The committee said charity trustees who had permitted scandalous fundraising methods were either "incompetent or wilfully blind".
PACAC chairman Bernard Jenkin said: "This is the last chance for the trustees of charities, who allowed this to happen, to put their house in order.
"Ultimately, the responsibility rests with them. No system of regulation can substitute for effective governance by trustees.""Ultimately, the responsibility rests with them. No system of regulation can substitute for effective governance by trustees."
He told the BBC that charities were "apologetic", but he said there was not yet a "proper understanding... that it is fundamentally trustees who are responsible for setting the tone of their organisation".
"Their values should extend to everything they do, not just the charitable objectives," he added.
Rob Wilson, minister for civil society, said: "I have made it clear that the sector has one last chance to prove that self-regulation can work, but I am willing to step in and impose statutory regulation if necessary."
Poppy seller's death
Fundraising practices came under scrutiny in 2015 after the death of 92-year-old Olive Cooke, one of Britain's longest-serving poppy sellers.Fundraising practices came under scrutiny in 2015 after the death of 92-year-old Olive Cooke, one of Britain's longest-serving poppy sellers.
She killed herself after complaining she had been plagued by requests for donations from charity fundraisers - more than 200 letters in one month alone.She killed herself after complaining she had been plagued by requests for donations from charity fundraisers - more than 200 letters in one month alone.
While her family said that did not contribute to her death, it did highlight the plight of vulnerable people at the mercy of unscrupulous fundraisers.While her family said that did not contribute to her death, it did highlight the plight of vulnerable people at the mercy of unscrupulous fundraisers.
Eighty-eight year old Samuel Rae - a former army colonel with dementia - was another victim. Samuel Rae, 88 - a former army colonel with dementia - was another victim.
Charity fundraising companies sold his details on to other companies including fraudsters who targeted him for £35,000. Charity fundraising companies sold his details on to other companies, including fraudsters who targeted him for £35,000.
The government's response to the scandals was to set up a review which recommended a new body to regulate the business of raising money. Its first chief executive was appointed before Christmas. The government's response to the scandals was to set up a review which recommended a new regulator of fundraising.
The PACAC report says the new regulator represents the "last chance" for self-regulation of charity fundraising, and that if it fails, statutory regulation must follow. Former Big Lottery Fund chief executive Stephen Dunmore was appointed in December as interim chief executive of the new regulator, responsible for setting up the organisation.
The MPs say it is down to charities' trustees to ensure the methods their organisations use are ethical. It will replace the Fundraising Standards Board (FRSB), which has welcomed the call for trustees to take more responsibility for fundraising activities.
If not, they risk damaging the reputation of all charities and their ability to raise money, the MPs add. Like the FRSB, the new body will be based on self-regulation - meaning charities themselves develop and enforce standards and rules of behaviour.
Rob Wilson, minister for civil society, said: "I have made it clear that the sector has one last chance to prove that self regulation can work, but I am willing to step in and impose statutory regulation if necessary." Sir Stuart Etherington, who chaired the review, said it was important not to "lose sight of the principle of self-regulation in fundraising on which everyone is agreed".
Sir Stuart Etherington, chief executive of the National Council for Voluntary Organisations, who chaired the government review, said: "It is crucial that charities' fundraising operations reflect their values just as much as other areas of their work do. "I am not persuaded for this reason that it is appropriate for the fundraising regulator to report to a government body," he added.
"While the Charity Commission rightly has a role to play in ensuring that charities are well-governed generally, it is important that we do not lose sight of the principle of self-regulation in fundraising on which everyone is agreed. Paul Farmer, chairman of the Association of Chief Executives of Voluntary Organisations, which represents charity leaders, said the new regulator had the "full support" of charities and should "make sure that the poor practices of a tiny number of charities don't happen again".
"I am not persuaded for this reason that it is appropriate for the fundraising regulator to report to a government body." He also said charities had "looked really carefully" in recent months at their procedures on using donors' data.
Are you a regular contributor to charities? Have you worked for a charity? Let us know about your experiences. Email haveyoursay@bbc.co.uk with your stories.Are you a regular contributor to charities? Have you worked for a charity? Let us know about your experiences. Email haveyoursay@bbc.co.uk with your stories.
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