Regulator finds CICs’ fundraisers placed ‘undue pressure’ on the public

The Fundraising Regulator has found that fundraisers for two linked community interest companies placed “undue pressure” on members of the public to donate.

Its probe follows the regulator’s investigation into Atoma Union CIC and its sister union Youth Words Union CIC amid complaints that suggested “a possible patterns of aggressive and pressuring fundraising behaviour” by its fundraisers.

This includes two complaints in London that detailed “verbal and physical altercations with fundraisers”.

“One local authority described fundraisers as very aggressive,” said the regulator.

“We received three complaints referring to behaviour that could be regarded as pressuring and, in one account, particularly aggressive.

“We found that fundraisers representing the CICs were, in some instances, acting in a way that could reasonably be perceived as placing undue pressure on members of the public to donate.”

The regulator also attempted to contact the CICs repeatedly amid concerns their fundraisers did not have the correct licences in place. However, these were not answered.

The regulator found that: “In the absence of any information to the contrary, despite our repeated attempts to contact the CICs, we considered it reasonable, on the balance of probabilities, to conclude that both CICs were engaged in fundraising without the correct licences.

“We based this on stakeholder intelligence, complaints, enquiries about donations, and reports of money being exchanged for nothing in return. We received information from three local authorities indicating that both CICs had been actively soliciting funds.

“Two local authorities issued warnings instructing them not to fundraise without the correct licences.”

Three breaches to the regulator’s Code were found, two focusing on behaviour and the other around a lack of licences and permission to fundraise.

Both CICs have since dissolved but the regulator wanted to publish its findings to highlight its concerns and for CICs and charities to ensure all their fundraisers have “appropriate training”.