An amendment to the Fair Trading Act is not exactly exciting news unless you are a serious fundraiser who is keeping your knowledge up to date.
The passing of this legislation is a forewarning of regulation in the charitable sector, forcing transparency of fundraising practices including cost of fundraising. In a nutshell the Bill allows the Minister of Commerce to make regulations requiring organisations and professional fundraising companies to disclose the cost of their fundraising activities.
So there is small window of opportunity to stave off any regulations by ensuring that the sector is open and accountable and fully able to report on the cost of fundraising if required.
The legislation has serious implications for marketers also. As a specialist in corporate/charity relationships I've been frequently annoyed by cause related marketing campaigns which proudly announce that a donation is being made to a charity from a sale of a product or service. "How much?" is rarely explained. the new legislation now brings this under the realm of the Fair Trading Act, and if regulations are introduced, then marketers will need to be aware of what they say about such donations, including how much is being donated.
More information can be found about this legislation in the Fundraising Institute magazine Newz Viewz, August issue.
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