Using fundraising agencies: You are not outsourcing ultimate responsibility

As budgets become ever-more stretched in the charity sector, an increasing number of charities are opting to outsource some of their operations in order to minimise headcount.  This can be effective, especially for time-limited projects or those where payment can be on a results basis.

But outsourcing is not without its pitfalls, especially in the field of fundraising, which is now regulated much more stringently than in the past.  A recent case has shone the spotlight on the necessity of proactively managing such contracts if charities are not to end up being censured by the Fundraising Regulator.

The most recent high-profile case where this has happened involved the Great Ormond Street Hospital Charity, which was found to have breached the Regulator’s Code 11 times in relation to a contract with a fundraising agency and a further subcontractor.

The case came to light after a reporter from The Times uncovered concerns about ‘pressure-selling tactics’ and the behaviours of fundraisers working for the subcontractor.

The Regulator’s investigation found that the contract between the agency and the subcontractor was insufficient, reportedly lacking details about monitoring processes and compliance expectations, and that training materials did not cover details about unreasonable persistence, undue pressure and vulnerable circumstances.

This is an important lesson for any charity which is outsourcing any aspect of its fundraising, not least because this is the area where much of the interaction between the charity and the general public happens.  Not only is there the potential for the charity to be hauled over the coals by the Fundraising Regulator if anything goes wrong, but perhaps even more concerning is the potential for lasting reputational harm.  Public trust, once compromised, can be difficult to rebuild, and for charities that trust is imperative.

Often outsourcing happens when there is insufficient resource within the charity itself to undertake the task.  But the contract still needs to be managed and monitored, and it is important that someone in the charity – whether a member of staff or a trustee – is assigned to do this. 

Performance needs to be audited thoroughly, and on an ongoing basis, with this process written into the contract itself.  You are outsourcing the work, not the responsibility.