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You may have heard about some significant changes in the charity sector. In July 2016 The Fundraising Regulator (FR) took over responsibility for the Code of Fundraising Practice. The code sets standards and promotes good practice and compliance in the sector. The FR is responsible for keeping the code up to date and investigating complaints against fundraising charities.
In order to fund the FR, a new annual levy has been introduced on some fundraising organisations. Essentially, this is a voluntary levy, collected from charities in England and Wales that spend £100,000 or more each year on generating voluntary income.
Letters from the FR have already been sent out to inform those with the largest fundraising expenditure. These letters will be closely followed by an invoice detailing the exact amount to be paid and asking for payment within 30 days.
The levy applies to around 2000 charities that have spent more than £100,000 a year on fundraising. The figures are taken from charities’ annual returns to the Charity Commission for the year ending 31 December 2014. If your charity is exempt, a flat rate levy of £1000 will be charged instead.
The amount charged is based on bandings, with the levy amounts ranging from £150 to £15,000 depending on how much was spent on generating voluntary income.
The levy amount is a fixed rate for three years and is to be paid annually.
The levy is voluntary but if you want to be registered with the Fundraising Regulator you will have to pay it. This entitles you to use the FR logo and your charity name will be published on the FR website indicating to your donors a public sign of commitment to good practice.
If your spend on generating voluntary income fell below £100,000 on your 2014 annual return, you will not be subject to the levy and will not automatically receive a letter from the FR. You can however register with the regulator voluntarily to receive updates about the work of the FR. The registration fee is £50. Please note: The FR registration system is not yet open, please visit www.fundraisingregulator.org.uk for further details.
We will continue to keep you updated on developments but if you have any specific questions regarding the Fundraising Levy please contact Joanna Gray.
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