For many churches and places of worship, collecting donations is a familiar and deeply embedded part of community life. 

Whether this be through weekly offerings, retiring collections, special appeals or online giving links, it is easy to assume that these long-standing, volunteer – led practices sit outside formal regulation. However, the Fundraising Regulator has recently taken steps to remind faith‑based charities that this is not the case. Where money is requested from the public, the Fundraising Code of Practice may apply, even where giving is informal, spiritually motivated or not labelled internally as fundraising.

This is particularly relevant for churches, charity trustees and church leaders who oversee giving and stewardship arrangements.

At what point does collecting money become “fundraising”? 

Whilst many churches may not describe their activities as fundraising, the code may. 

For clarity, fundraising includes any activity that invites people to give money for a charitable or religious purpose. In a church context, this may include: 

• Weekly collections or offerings during services
• Gift Aid envelopes
• Retiring collections or special appeals (for example, for building works or hardship funds)
• Donation boxes within church buildings
• One-off fundraising events organised by or on behalf of the church (even if this is limited to the congregation only and does not engage members of the public). 

If money is being requested with a purpose attached, the fact that it takes place within worship, feels familiar and is accepted as regular practice doesn’t take it outside the scope of regulation. 

Practical steps that can be taken to ensure compliance with the Fundraising Code

The Fundraising Code is designed to be proportionate and recognise the realities of small charities and faith communities. However, there are some core principles that church trustees and leadership teams should ensure are in place. In practice, this means: 

Being clear about the purpose of the giving 

Churches should be transparent about what donations are being collected for and avoid creating misleading impressions about urgency, need or impact of the contributions. 

Explain what happens if the targets are not met 

If an appeal has a specific financial goal, donors should be told what will happen to their money if that goal is not reached (for example, whether funds will be redirected to a general fund). 

Ensuring that giving is truly voluntary

Particular care is needed in worship settings, where people may feel social or spiritual pressure to give. Donations must be freely given, without embarrassment, coercion or undue influence.

Handling donations responsibly 

Make sure that appropriate financial controls are in place so that donations can be recorded accurately and used only for their stated purpose. 

Have a simple complaints process

Churches should be able to explain how concerns or complaints about fundraising can be raised and must handle any complaints fairly and promptly. 

Supporting volunteers

Those involved in collecting or handling donations, even on an occasional basis, should understand the standards that apply and how to interact appropriately with donors, particularly those that might be classed as ‘vulnerable’.  

Putting these measures in practice and ensuring your actions are well documented can go a long way towards demonstrating compliance if concerns are raised. 

Don’t forget data protection obligations!

Collecting donations frequently involves processing personal data, such as names, contact details, bank information or Gift Aid declarations. In some cases, it may also reveal an individual’s religious affiliation.

This means churches must also comply with data protection law, including:

            • identifying a lawful basis for processing donor information

            • providing appropriate privacy information

            • keeping personal data secure

            • respecting individuals’ rights over their data

Trustees should consider fundraising practices and data protection obligations together, rather than treating them as separate exercises.

To conclude…

Giving is often central to church life and an expression of faith, generosity and a shared mission. Churches can continue to encourage generosity while protecting trust, supporting their trustees and meeting their legal obligations but must comply with the Fundraising Code of Practice. 

If you would like support updating your policy on legacies, fundraising and collections, or to review whether your privacy policy covers your campaigns and appeals, please contact a member of the charities team.