Lloyd warns charities on disclosure

Charity “enforcer” Colin Lloyd has warned organisations that they must be transparent about the money they make from fundraising – despite admitting it is a sensitive issue – following a probe into Cancer Research UK’s face-to-face activities.
The issue was sparked by a member of the public, claimed to be a long-term opponent of so-called chugging, who complained to the Fundraising Standards Board.
Believing that CRUK had failed to provide sufficient answers about the cost of its face-to-face fundraising activities, the complainant claimed the charity’s response was symptomatic of the wider sector’s “cloak-and-dagger” approach to answering questions about the true cost the fundraising method.
But in a ruling published today, the FRSB threw out the complaint, saying the charity did not breach the Fundraising Promise, which states charities should be honest and open, or the Institute of Fundraising’s code of fundraising practice.
The FRSB ruling says the board unanimously agreed that CRUK handled the complainant’s questions in a “reasonable and fair way” by answering the majority of queries – including the ROI and effectiveness of its campaigns.
However, CRUK was criticised for failing to refer the complainant to the FRSB when it became clear it could not resolve the complaint itself.
And FRSB chair Colin Lloyd said: “Disclosure of information such as the cost of charity fundraising campaigns is a very sensitive area. It is crucial that charities are open and honest with supporters.
“It can often be a difficult judgement call about where to draw the line [on financial disclosure], but we feel that CRUK took a balanced and reasoned approach.”

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