Charities eye £290m boost after Data Bill amendment

Charity marketers have secured Government backing for an amendment to the new data reform bill to extend the ‘soft opt-in’ to third sector fundraising, following a lobbying campaign spearheaded by the DMA, and backed by Salocin Group agency Wood for Trees and nearly 20 leading UK charities.

While the industry body initially welcomed the Data (Use & Access) Bill when it was published in October, it then emerged the soft opt-in clause contained in the bill’s predecessor – the Data & Digital Information Bill – had been scrapped.

In November, the DMA issued a letter to the Secretary of State for Science, Innovation & Technology Peter Kyle on behalf of its charity members, calling on the Government to address the key amendment.

It was backed by an analysis carried out by Wood for Trees, which revealed charities could financially capitalise on this rule change, and benefit to the tune of £290m a year.

Three peers, Lord Clement-Jones, Lord Black of Brentwood and Baroness Harding of Winscombe, took up the cause.

In their notes the three Lords stated: “This amendment will enable charities to communicate to donors in the same way that businesses have been able to communicate to customers since 2003. The clause will help facilitate greater fundraising and support the important work charities do for society.”

The Salocin Group chief executive Nick Dixon said: “We are pleased to have utilised our nearly 20 years of expertise in the not for profit sector to help extend the ‘soft opt-in’ for email marketing.

“Since its establishment in 2007, Wood for Trees has aimed to provide actionable insights to our clients. It is gratifying to offer these insights to the Government and demonstrate the potential threat this aspect of the Data (Use &Access) Bill could have posed to the not for profit sector.”

In a blogpost on the DMA website, public affairs consultant Michael Sturrock said: “This decision marks a significant step forward in empowering the charity sector to strengthen relationships with supporters, foster deeper community connections, and ultimately enhance the impact of their vital work.

“By extending this measure – currently available only for commercial messages – the Government has shown it is willing to listen to charities and act to unlock more fundraising opportunities. In a time of consistent challenges for charities, this is important.

“It is also a recognition of the unique and emotional connections that charities have with their supporters, as well as the pressing need for these organisations to effectively communicate with those who care deeply about their causes.

“Indeed, the rules will encourage innovative marketing strategies from the sector, adding to the creativity and success of the industry as a whole.

It is understood the bill is now nearing the end of the House of Lords committee stage, after which it will have its third reading.

The bill will then proceed to the Commons – possibly next month – for its first and second reading, followed by committee stage and third reading, before entering its final stages and Royal Assent.

Even so, it is not guaranteed a completely smooth passage; a number of privacy groups have already slated the bill, while even a Lords committee has expressed concerns over whether the changes could jeopardise the EU data adequacy agreement, estimated to be worth up to £161bn a year to the economy.

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