Don't claim zero fundraising costs, says institute

Charities should not claim that "all of your £1 goes direct to the cause" or that "our fundraising does not cost us anything", according to new rules published by the Institute of Fundraising this week.

The institute's code of practice on accountability and transparency will also require member charities promoting beneficiary or 'virtual' gifts to state exactly how donors' money is used.

The rules were introduced as a result of concern that charities that claim they have zero fundraising costs, or don't explicitly state that money donated for beneficiary gifts may be used for other purposes, are in effect misleading the public.

Megan Pacey, director of policy and campaigns at the institute, said: "The more that can be done to increase understanding, trust and confidence in charities, the more sustainable the sector is likely to be in the future."

The code also offers guidance on how to tell donors about fundraising costs.

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