2025 Code of Fundraising Practice
Applying in Scotland, the Code came into effect on 1 November 2025. While not legally binding, it is important that charity trustees follow it to demonstrate that their fundraising practices maintain the public’s trust and support. The Code sets out a principles-based set of rules intended to promote high standards of practice in relation to fundraising. The Code uses terms such as "appropriate", "reasonable" and "proportionate", deliberately encouraging fundraisers to consider how their activities meet these principles.
The role of trustees
Trustees must ensure that charitable assets, including funds generated by fundraising, are appropriately allocated and must act reasonably and carefully in matters relating to those funds. According to the Code, trustees’ responsibilities may include:
- Taking overall responsibility for fundraising activities, including those delegated to others.
- Following codes and guidance from relevant regulators.
- Ensuring compliance with data protection law.
- Obtaining appropriate advice when needed.
- Considering the impact of controversial fundraising campaigns.
- Assessing and managing risks that fundraising poses to a charitable institution’s activities, beneficiaries, property, work and reputation.
- Meeting any reporting and accounting requirements relating to donations.
Additionally, the Code notes that trustees should ensure they have effective processes in place to address fundraising complaints and that safeguarding systems are maintained to ensure that any issues are addressed.
In summary, charities should develop appropriate policies, including both an ethical fundraising policy and a policy addressing the safeguarding of those engaged in fundraising activities, and ensure that the funds raised by the charity are applied for charitable purposes.
Foreign Influence Registration Scheme
The Foreign Influence Registration Scheme (FIRS) came into effect on 1 July 2025. Its purpose is to raise awareness of foreign powers' activity in the UK. The scheme requires a party making an arrangement with a foreign power to register that arrangement with the Home Office.
(a) Key concepts
The definition of an "arrangement" and the involvement of a "direction" are key concepts in FIRS.
An arrangement is defined broadly and may include formal and informal dealings. The involvement of a direction implies an obligation for a charity to act. This obligation may be formal, such as a contract, or informal, through an expectation that the charity will receive a benefit in return for taking certain actions.
FIRS categorises arrangements into two tiers: the first being foreign influence activities, labelled the political influence tier, and the second being activities by specified foreign powers in the UK, characterised as the enhanced tier.
(b) The political influence tier
The political influence tier requires the registration of an arrangement with a foreign power when this involves a direction from the foreign power to conduct political influence activities in the UK. For charities to satisfy the requirement for registration, there must be an activity and a purpose. Activities can include private or public communications and distributing goods or services to a UK individual or entity. The activity must aim to influence any UK or devolved government proceedings, including elections, parliamentary decisions, and members of parliament. The UK Government has published helpful guidance for the third sector which provides examples of the types of activities that might require registration. Registration under this tier must be completed within 28 days of the date the arrangement is made.
The enhanced tier
The enhanced tier requires registration of any arrangements with specified foreign powers or entities when they involve a direction to conduct activities in the UK. The current specified foreign powers are Russia and Iran. There are certain limited exceptions to activities involving these powers. Registration under the enhanced tier must be completed no later than ten days after making the arrangement.
Registration
First-time registration can be completed online through the UK Government portal. You will need to create a FIRS account, from which you can register activities and arrangements. Failure to register under FIRS is a criminal offence, and the severity of penalties depends on the tier in which the offence occurred. Offences include failure to register an agreement or arrangement, conducting an unregistered activity or political influence for a foreign power while acting under a misrepresentation, and providing false or misleading information, among others. Under the political influence tier, offences are punishable by up to two years imprisonment and/or fines, while under the enhanced tier offences are punishable by up to five years imprisonment and/or fines.
Summary
The introduction of the 2025 Code of Fundraising Practice and the Foreign Influence Registration Scheme brings new considerations and legal obligations for UK charities. While the Code encourages a principles-based approach to fundraising, placing greater emphasis on trustee accountability and ethical standards, FIRS introduces a new layer of scrutiny around foreign arrangements, particularly those involving political influence or specified foreign powers. Compliance with the Code and FIRS is essential to ensure that charities maintain an ethical approach to fundraising and are accountable for their operations involving foreign powers.
This article was co-authored by Eve Gunson, Trainee Solicitor in our Charities & Third Sector group.
