Regulator raises levy for largest fundraising charities

Charities that spend more than £50m on fundraising will be asked to pay £15,000 each year, but smaller charities will pay less than originally envisaged

Fundraising Regulator
Fundraising Regulator

The Fundraising Regulator has increased its levy for the largest fundraising charities to £15,000.

In paper, published today, that sets out the arrangements for the levy it plans to charge charities in order to finance itself, the regulator says that charities spending more than £50m on fundraising will be asked to pay an annual levy of £15,000.

The regulator has also reduced the amount it plans to charge charities at the bottom end of the scale. Charities that spend between £100,000 and £149,999 on fundraising will be charged £150, down from the £250 the regulator had proposed for this size of charity in a consultation it launched in June. This will help smaller fundraising charities, the regulator says.

The charges will be set on a sliding scale, with charities in the middle of each band paying a sum that is proportionate to their size.

The regulator has also reduced the flat fee it plans to charge higher education institutions each year from £1,500 to £1,000. It says this will also apply to the 18 universities that are registered charities.

The paper says the regulator has agreed to postpone introduction of the levy until 1 September. It had planned to start charging charities from 1 August, but came under criticism for this from the Directory of Social Change because its consultation seeking views on the subject closed only in late July.

The regulator says it will instead finance itself using money raised for its set-up costs for a further month.

It also says it plans to press ahead with its plan to charge charities that are not subject to the levy a fee of £50 a year to register with it, despite calls from the local infrastructure body Navca last month to make this free to maximise the number of organisations that take it up.

But it says that rather than charging third-party commercial suppliers a flat rate of £250 to register – which is what it had proposed in its consultation – such companies will be charged a fee based on their annual income using the same bands as those used by the Fundraising Standards Board.

Gerald Oppenheim, head of policy at the regulator, said in a statement: "The Fundraising Regulator’s priority is to build and sustain public confidence in the sector. Charities can help achieve this by registering with the regulator and by agreeing to the fair and proportionate levy."

The levy will be reviewed after three years.

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