Community Foundations Trustee and Senior Executive Training SW - PowerPoint PPT Presentation

South West Community Foundations Trustee and Senior Executive Training

SW Community Foundations training and networking day The changing regulatory environment James Evans

Introduction 1. Some context 2. GDPR 3. Changes to Fundraising Regulation 4. Charity Commission powers 5. What’s coming down the line

Context • Response to dented public trust in charity sector – Fundraising practices/misuse of donor data – Examples of poor governance and financial management – Misuse of charity funds • CC concentrating on regulatory role • Charities no longer immune from sanctions for data protection breaches

GDPR- Key implications for CFs • In force 25 May 2018- no grace period, not affected by Brexit • Tougher DP regime • Affects all personal data held by CFs, not just a fundraising issue! – Staff – Volunteers/trustees – Beneficiaries – Donors/supporters

GDPR- Key implications for CFs • Consent harder to obtain and rely on • Increased transparency needed • Tougher compliance requirements • Enhanced individual rights • Bigger fines for getting it wrong • Need to be able to demonstrate you comply

GDPR-what should we be doing? • Identify a DP compliance lead and team within the charity- and support them! • Audit and map the personal data your charity holds and uses, for what purpose, and on what legal basis • Review DP policies, external privacy notices and consent wording – Privacy notices specific to each category of data subject

GDPR-what should we be doing? • Review arrangements with third party data processors • Plan any required communications with donors, service users, staff, volunteers • Review systems and processes- make sure you are geared up to respond to: – the enhanced rights for individuals- e.g. SARs – Data breaches • Trustee and Staff training and awareness

GDPR-should we go opt-in? • Not all direct marketing needs an opt-in- nuanced approach likely to be needed • ‘Legitimate Interest’ justification may allow communication by post with supporter base with ‘opt out’ option – Must be a legitimate interest – Not overridden by rights and interests of the individual

Fundraising changes • Fundraising Regulator now in operation – Last chance saloon for self regulation of charity fundraising? – Now responsible for Codes of Fundraising Practice – Investigates/adjudicates on complaints – Oversees the Fundraising Preference Service (FPS)

Fundraising changes • Agreements with professional fundraisers/commercial participators • Charity Commission guidance CC20 • https://www.gov.uk/government/publication s/charities-and-fundraising-cc20 • Emphasises the role of trustees in charity fundraising

Fundraising changes • CC20 Key principles: • Planning effectively • Supervising your fundraisers • Protecting your charity’s reputation, money and other assets

Fundraising changes • Identifying and ensuring compliance with the laws or regulations that apply specifically to your charity’s fundraising • Identifying and following any recognised standards that apply to your charity’s fundraising • Being open and accountable

FPS • Fundraising Preference Service now in operation – Need to ensure you are set up to receive and deal with requests – 28 days to comply with suppression requests – Fundraising Regulator FAQs https://www.fundraisingregulator.org.uk /the-fundraising-preference-service/for- charities/

CC regulatory powers • Official warnings • Against charity or individual trustees • Can be published • New discretionary CC power to disqualify a person from acting as trustee • Must meet one of 6 criteria • Satisfied unfit to be trustee • Desirable in public interest to disqualify

CC regulatory powers • Automatic trustee disqualification criteria extended from 1 August 2018 • Disqualification criteria extends to acting as CEO or CFO or equivalent • Trustees and senior managers should be asked to renew declarations before 1 Aug • Review pre-appointment procedures • Waivers can be applied for from 1 Feb

What’s coming down the line? • CC charging- when, not if? • Conversion of CFs company limited by guarantee to CIOs • Law Commission draft Charities Bill

James Evans j.evans@tozers.co.uk 01392 207896