Changes in data protection, fundraising rules, and the impact on non-profits

Charity marketing has always been challenging. But as rules around data protection are tightened, with the approach of the GDPR deadline in May 2018, and consumers become more self-selecting, this just became even harder.

In recent years, many people have expressed frustration over the lack of control they feel over how, and how often, they are approached with fundraising requests. We’ve all heard the story of the Olive Cooke, the 92 year old who allegedly committed suicide in 2015 because of charities pursuing her for money. Charities implicated such as Amnesty International, Save the Children and the Alzheimer’s Society insisted that their actions were not to blame for Olive’s death. But many accused the charities of exploiting the poppy seller, with allegations that she was receiving over 260 begging letters a month.

Whilst perhaps this is an extreme example, the Fundraising Regulator is acutely aware of the need to manage the situation carefully.

With the creation of the Fundraising Preference Service or FPS (planned launch in 2017), people will have the ability to opt out – and this will affect not just the general public, but also those people that have actively engaged with a charity’s fundraising campaigns, but perhaps not opted in to marketing communications.

For those that already have a highly engaged supporter database, this is unlikely to prove a significant problem. Yet for those who rely on email and direct marketing to purchased lists or lukewarm data, there is a need to tighten up significantly.

Charities need to stand out - now more than ever

I recently met up with Gillian McKay, Head of Charity and Voluntary Sector at ICAEW (Institute Of Chartered Accountants In England And Wales), who had this to say:

“It’s never been more important that charities stand out with a message that will really engage supporters.

Lots of charities already have very good levels of engagement. In general their budgets are smaller, and their accountability greater than in the commercial sector. While they won’t be able to change the rules, they can certainly prepare for the changes.” 

In a world where the largest non-profits spend ￡millions each year on marketing, it is more important than ever that even the smallest charities work hard to articulate their point of difference – or that they appoint a marketing partner or non-exec director that can help them to do this.

Inbound and social are increasingly vital

Many are now turning away from fundraising emails and direct mail, and are increasingly looking to inbound activity and social media for both awareness and fundraising campaigns.

Creating organic engagement through social media, as well as taking advantage of incentives such as Google Ad Grants, is vital to help amplify the message. And we have been shocked at just how many eligible charities the BH&P team have come across during the past year, that are not yet making full use of the ad grant. This is a simple and extremely effective way we can help our non-profit clients to reach out to those people that are already actively seeking information or looking for ways to support their cause.

Whilst it is true that some organisations may lose valuable existing members when new rules on data protection come in to place, those that are both creative and diligent now, with high levels of supporter engagement, will see little change.

Social media and inbound marketing will continue to offer new and exciting opportunities to engage with supporters. But for many, the biggest challenge will remain in converting awareness and engagement into tangible and financial support.

Update: Complying with the GDPR deadline, of 25 May 2018, is not optional. All businesses that use personal data need to comply and cross the May 2018 GDPR finish line. Brexit and the triggering of Article 50 will not affect this deadline. The Government has already made it clear that even though the GDPR is European legislation it will still take effect in the UK after Brexit.

This is just an excerpt. For examples of our campaigns for non-profits, and to read the full article, visit beckyhollandpartners.co.uk.

Many thanks to Gillian McKay from ICAEW and all those who have contributed to this article.