Why the Fundraising Code matters to churches

For many churches and Christian charities, fundraising does not feel like 'fundraising' at all. 

Teaching on generosity, encouraging tithing or inviting support for a ministry or mission often feels like a natural part of discipleship and church life. But according to the Fundraising Regulator, these activities are still fundraising, and that means the Fundraising Code of Practice applies.

At first glance, that might sound like yet another layer of regulation to navigate. Yet the Code is not simply about compliance, but about principles. At its heart, it is about trustworthiness, something that should matter deeply to every Christian organisation. As Proverbs 12:22 reminds us, 

‘The Lord detests lying lips, but he delights in people who are trustworthy’

The good news is that many churches and charities are already following the principles behind the Code. The values that underpin it – being legal, open, honest and respectful – reflect biblical principles for handling money and relationships well.

Why the Fundraising Code applies to churches

Some church leaders are surprised to learn that asking church members to give financially counts as fundraising. The Fundraising Regulator has clarified that this includes tithing and general appeals for donations to support church ministry.

The Fundraising Code applies whenever people are asked to give money freely for charitable purposes without receiving something material in return. So while collecting ticket money in from the participants of a group cinema trip would not fall under the Fundraising Code as there is a benefit to the participants, donations towards a youth event or church building project almost certainly would.

Although compliance with the Fundraising Code is not itself a legal requirement, the Regulator expects organisations to follow it if a complaint is raised. Failure to do so can lead to investigations and reputational damage, particularly as findings are published publicly.

Rather than seeing this as a burden, churches can view it as an opportunity to demonstrate integrity and care in the way they handle giving.
This particularly applies to churches in three specific areas.

1: Protecting vulnerable donors

One of the most important areas of the Code concerns people in vulnerable circumstances.

This includes people who may struggle to make informed financial decisions because of mental capacity issues, illness, emotional distress or difficult life situations. It also includes circumstances where emotional testimonies or urgent appeals may temporarily increase vulnerability.

As Christians, we want people to give joyfully and willingly, not reluctantly or under pressure (2 Corinthians 9.7). Churches should therefore have systems in place to identify and support people who may be more vulnerable when responding to fundraising appeals.

The Fundraising Regulator recently investigated a church after concerns were raised about a large donation from a vulnerable individual. The Regulator found that the church should have taken greater steps to assess the donor’s circumstances, particularly because the donation was significantly larger than their usual giving and the church was aware of previous mental health concerns.

The investigation also highlighted the increased risk that emotionally charged testimonies or traumatic stories can create during giving appeals.
Importantly, the Regulator confirmed that encouraging tithing is an acceptable practice. The same principles apply: giving should remain voluntary and no checks should be made or pressure placed on members regarding how much they give.

The Code also makes it clear that organisations should not accept donations where they believe the donor cannot make an informed decision. If concerns later come to light, the donation may need to be returned. For more on this, read our blog about how to deal with tricky or challenging donations.

2: Planning campaigns carefully

Specific fundraising campaigns, such as building projects or renovation appeals, require additional clarity.

Churches should clearly explain:

• what donations will be used for
• what happens to the donations if too much or too little money is raised
• what will happen to the donations if the project cannot go ahead 

Consistency matters too. Information shared in meetings, online and in emails should all align so donors fully understand how their gifts will be used.

3: Complaints matter too

The Code also requires organisations to have a clear and publicly available complaints process.

Complaints should be investigated fairly, responded to appropriately and reviewed so lessons can be learned. The Regulator also recommends including guidance on identifying and handling unreasonable or malicious complaints.

Importantly, organisations should engage openly with the Regulator if concerns are raised. In recent investigations, churches that failed to engage constructively were criticised for not doing so.

Practical next steps for your church

Three practical steps can make a significant difference:

1. Read the Fundraising Code, the support guides and the Fundraising Regulator’s blog for faith-based charities. These are all clear, practical and helpful.
2. Create or review your fundraising, donor protection and complaints policies. You may find the template fundraising policy, which can be purchased from our online shop, a helpful start.
3. Train staff, volunteers and trustees in the way your church intends to apply the Fundraising Code.

Ultimately, complying with the Fundraising Code is not about ticking boxes. It is about reflecting Christian values in the way we invite and receive generosity.

Done well, following the principles of the Fundraising Code to be legal, open, honest and respectful helps churches and charities not only to be trustworthy, but also to be seen to be trustworthy.