The Fundraising Regulator, the body that oversees fundraising practice in England, Wales and Northern Ireland has today announced changes to the way it will collect its annual levy.
The changes announced today will apply to levy years 4 and 5, running from September 2019 to August 2021. The changes include introducing two extra bandings at the lower end of the levy payment scale so that changes in the levy for smaller fundraising charities are not as steep as they might otherwise have been. This means they will move up the scale more gradually when their fundraising expenditure increases.
As a result, some charities will be paying a smaller amount in levy payments than in previous years although others will pay more. The aim is to ensure that the levy amount charged is fair and proportionate.
To ensure that charities are paying the correct levy, the Fundraising Regulator has also announced payments are to be based on the information that charities provided in their most recent audited accounts and annual return to the Charity Commission, usually the 2016-17 or 2017-18 financial year. The levy is currently based on annual returns made to the Charity Commission in 2014, the latest information available when the levy was launched in 2016. The levy will continue to be based on total fundraising expenditure of the charities eligible to pay it (those who have fundraising costs of £100,000 or more).
These changes will come into effect on 1 September 2019 with invoices issued as usual in August 2019. Charities who may be affected by the changes to levy bands will be informed in writing before the invoices are issued.
The Fundraising Regulator asks that registered charities in England, Wales and Northern Ireland with fundraising costs of £100,000 or more pay the regulator’s annual levy. The levy supports independent self-regulation in the charity sector.
By paying the levy, charities demonstrate their commitment to the Code of Fundraising Practice and the Fundraising Promise.
Gerald Oppenheim, Chief Executive of the Fundraising Regulator, said:
“Today’s announcement is about making sure that we are taking the fairest approach possible when it comes to our levy. By introducing two lower bands and basing who pays how much on more recent, accurate fundraising expenditure we are confident that today’s changes will reflect more closely charities’ current activity.
“We are really pleased that around 95% of the levy has been paid this year by charities within the levy, demonstrating their commitment to best practice fundraising. As always, we look forward to working collaboratively with the sector over the coming year.”