Earlier this month, the Fundraising Regulator announced that it was opening a review on a proposal to increase the Fundraising Levy (the levy) for the first time since 2016.
The proposed changes are expected to come into effect in September 2024 to give charities some time to prepare.
The consultation's focus is on seeking views from individuals within charitable fundraising organisations who are responsible for paying the levy or maintaining registration with the regulator. The regulator's board will then review the responses before including them in a summary of responses to be published in early 2024.
The levy is a voluntary contribution by charitable fundraising organisations which spend £100,000 or more each year on their fundraising activities. The levy represents the majority of the Fundraising Regulator's funding, and it helps fund the regulator's services, for the benefit of the entire fundraising sector. Such services include: setting and maintaining the UK fundraising standards, investigating complaints and concerns about charitable fundraising that has caused or may cause harm, operating the Fundraising Preference Service, and responding proactively to emerging or unaddressed issues.
The proposal to increase the levy was introduced in the context of a new regulatory approach reflecting the following trends: the rise of online fundraising, an increase to the regulator's caseload, its commitment to proactive and reactive regulation, and rising costs associated with a challenging economic climate and unexpected inflation.
In relation to the Fundraising Levy review, Lord Toby Harris, Chair of the Fundraising Regulator, said:
''We are committed to making sure charities are well informed and prepared prior to the increases taking effect, and we encourage all registered organisations to respond to our consultation on these changes.''
Charities will also receive advance notice of further increases tied to the Consumer Price Index (to ensure they are more gradual). They are expected to be implemented from September 2025.
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