Almost two-thirds of charities are failing to comply with fundraising reporting requirements, the Fundraising Regulator has said.
The watchdog said research it carried out showed 60 per cent of charities that spent more than £100,000 a year on fundraising were failing to fully explain their fundraising practices in their annual reports, something required under the Charities (Protection and Social Investment ) Act 2016.
To deal with the issue, the regulator has today published good-practice guidance, explaining what details charities need to include in their annual reports.
The regulator randomly selected 106 reports of a cross-section of different sized charities spending more than £100,000 a year on fundraising, and reviewed the fundraising statements in the reports.
Although most charities included a statement and mentioned that they were registered with the regulator, the analysis found that many needed to do more to demonstrate how charities are guided by the Code of Fundraising Practice.
Common issues the regulator identified included not enough detail about how fundraising campaigns were run and managed and who was doing the work, failure to demonstrate how they used the code to guide their work and not providing an explanation of fundraising work carried out on the charity’s behalf.
Many charities also failed to mention how many fundraising complaints they had received in the past year, the regulator said, and some gave only limited explanations of how they protected vulnerable people in their fundraising.
The guidance, available on the regulator’s website, includes information on what the statement should consist of, examples of a fully compliant report, expectations from the Charity Commission and what charities can expect from auditors and independent examiners.
Lord Toby Harris, chair of the Fundraising Regulator, said: "Although our review has highlighted a low level of compliance with the Charities Act 2016 in terms of fundraising statements, we recognise that this is the first year of reporting in this manner.
"We are committed to working with charities, especially those with lower fundraising budgets, to promote better practice in reporting and the importance of providing a comprehensive statement."