Faith-Based Organisations Must Apply Appropriate Safeguards to Their Fundraising, Regulator Urges

Why It Matters

Misclassifying religious donations can trigger code breaches, legal penalties and reputational damage, eroding donor confidence across the charitable sector.

Key Takeaways

• Faith charities often misclassify worship‑based giving as non‑fundraising
• Regulator warns non‑compliance risks for ungoverned religious donations
• Large gifts to vulnerable donors triggered code breaches, e.g., UCKG
• Member‑only appeals must follow public fundraising standards
• Trustees need policies, training, and complaint processes for all donations

Pulse Analysis

Religious giving has long been woven into the fabric of community life, but the UK Fundraising Regulator now treats it the same as any other charitable solicitation. Whether a congregation collects tithes after a service, solicits legacies during a wedding, or runs a member‑only building appeal, the activity meets the legal definition of fundraising. This shift forces faith‑based charities to apply the same governance standards—transparent reporting, donor consent, and clear purpose statements—as secular organisations, ensuring that the public’s expectations for accountability are met across all sectors.

Recent investigations underscore why the regulator’s guidance matters. The Universal Church of the Kingdom of God faced three code breaches after a sizeable donation from a potentially vulnerable donor was labelled an “offering” rather than a charitable gift. Similarly, Emmanuel Christian Fellowship’s new‑building campaign was found to lack a proper complaints process, treating member appeals as internal matters. Both cases illustrate how ambiguous terminology can mask non‑compliance, exposing charities to sanctions and damaging public trust. Vulnerable donors, in particular, require additional safeguards to prevent exploitation and to guarantee that large or unusual gifts are scrutinised appropriately.

For trustees and leaders of faith‑based organisations, the path forward is clear: embed robust fundraising policies, provide staff training on the Code’s scope, and establish transparent complaint mechanisms. By recognising every monetary request—public or member‑only—as fundraising, charities can protect donors, uphold ethical standards, and avoid regulatory penalties. As the sector adapts, these safeguards will become a cornerstone of sustainable, trustworthy charitable practice.