Giving with integrity: Should charities have a donor code of conduct?

You may be familiar with a code of conduct for trustees, but have you ever considered a code of conduct for donors? 

If your charity relies on the generosity of donors to achieve its charitable purposes, then the Chartered Institute of Fundraising recommends that you consider if this approach is right for you. 

In this article, Carla Boaks, solicitor in our sports, education and charities team, outlines the key elements that might be included in a donor code of conduct.

What is a donor code of conduct?

A donor code of conduct would set out:

• The standard of behaviour expected from donors;
• How donors should engage with staff, volunteers and beneficiaries of a charity; and
• The reasons why a charity may refuse, restrict or end a donor relationship.

It could apply not only to the act of giving, but also to donor interactions at events, meetings, online, in correspondence, or when donors represent or are associated with the charity (for example, taking a marathon place and representing the charity).

Why should I have a donor code of conduct?

At this point in time, donor codes of conduct are not commonplace and they are not a legal requirement.  However the Chartered Institute of Fundraising and the fundraising think tank Rogare have published research showing that more than half of the fundraisers they surveyed reported behaviour from donors/supporters that made them feel unsafe.  There are, therefore, good reasons to think about whether this is the right approach for your charity.

Charities have a legal duty to protect their staff, volunteers and beneficiaries. A donor code of conduct could therefore be used to :

• Support trustees to fulfil their duties: establishing a code would demonstrate that trustees have considered the potential risk of harm and put in place clear processes for decision-making;
  
  
• Protect against inappropriate behaviour: to ensure that staff do not feel pressured to tolerate unacceptable behaviour to secure funding; and
  
  
• Preserve independence and integrity: by reinforcing that donations do not buy control or influence over decisions which remain ultimately in the hands of the trustees.

The key components of a donor code of conduct

A donor code of conduct could include: 

• Purpose: a clear statement that donors are invaluable, but the charity has a duty of care to protect its staff, volunteers and beneficiaries from any inappropriate behaviour; 
  Expected behaviour: an expectation for donors to treat staff, volunteers and beneficiaries with respect and to comply with the charity’s safeguarding policies and any harassment-related policies;
  
  
• Prohibited behaviour: a clear, non-exhaustive list of unacceptable behaviours, such as harassment, abuse, inappropriate language, or using the promise of a donation to influence decisions;
  
  
• Consequences: confirmation that the charity reserves the right to refuse or return donations, or end the donor relationship, where appropriate and lawful.   This might include setting limits on the donor’s contact or engagement with the charity, such as excluding individuals from certain events or activities; and

Transparency and fairness: highlighting that the code applies consistently to all donors and is communicated openly, by publishing it on the charity’s website or fundraising materials.

An effective governance tool for charities?

For charities that regularly fundraise, a donor code of conduct could play an important part of modern charity governance in demonstrating a charity’s commitment to protecting its staff and volunteers and setting expectations. It would need to be carefully drafted so as to not discourage generosity or create unnecessary barriers for donors.

Having a code in place may help set the tone for fundraiser/donor interactions, help to avoid misunderstandings and provide a clear message that the charity takes its responsibilities to protect its staff and volunteers from harm seriously. 

If you would like support with drafting or reviewing a donor code of conduct for your charity, please contact Carla Boaks at [email protected] or by phone on 0191 211 7825.