The Fundraising Regulator has today (6 December 2023) announced it is opening a review to the charity sector on its proposal to increase the Fundraising Levy (the levy) for the first time since it was founded in 2016.
The levy constitutes the majority of the Fundraising Regulator’s funding and sees charities that spend over £100,000 on their annual fundraising activity pay a voluntary contribution to fund the regulator’s services. The levy has always and will continue to represent a fraction of a percentage of a registered charity’s total fundraising expenditure.
The proposal to increase the levy for the first time since 2016 has been put forward in the context of new regulatory responses to 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.
Prior to implementing changes, the Fundraising Regulator is seeking views from people within charitable fundraising organisations who are responsible for paying the levy or maintaining registration with the regulator. Once collected, these responses will be considered by the regulator’s board and published in a summary of responses in early 2024.
Following this consultation, the changes will come into effect in September 2024 to give charities plenty of time to prepare. Further increases from September 2025 will be tied to the Consumer Price Index (CPI) to ensure they are more gradual, with charities given advance notice before rises come into effect.
Commenting on the launch of the Fundraising Levy review, Lord Toby Harris, the Chair of the Fundraising Regulator, said:
“The past seven years have seen us grow as an organisation that promotes public trust and meets the regulatory needs of the sector. This new funding model will allow us to continue our work to promote public trust in charitable fundraising by ensuring it is legal, honest, open and respectful.
“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.”