Data protection changes set to benefit fundraisers

Last month, the government presented the Data Protection and Digital Information Bill (DPDI2) to Parliament.

The Bill aims to clear up some of the confusion surrounding General Data Protection Regulation (GDPR) and make data handling for businesses and charities in the UK more straightforward.

The government claims the Bill will save businesses and charities over £4 billion over the course of the next ten years.

Note: If you want to read the 214-page Bill in its entirety, be our guest. Otherwise, read on for the Cliff notes.

How will the bill affect fundraisers?

There are four key points to note.

1.   Soft opt-in

The laws governing electronic marketing (email, SMS, and telemarketing) are covered in the UK’s Privacy and Electronic Communications Regulations (PECR). Under PECR, businesses can send electronic marketing messages to existing customers without consent. This is known as ‘soft opt-in’.

Currently, the soft opt-in rule can only be used by organisations that are ‘selling something or negotiating to sell something’. And customer information can only be collected during the sales process. This means charities can’t use soft opt-in for campaigning. And, unfortunately, a donation to a charity doesn’t count as a sales transaction – it’s regarded as a transfer of money, rather than a purchase.

Under the proposed Bill, the soft option will be extended to charities, enabling them to communicate with existing donors on the same basis as commercial organisations. 

However, certain criteria need to be met:

• It will only apply to existing donors, not prospective or new ones.

• Marketing communications with existing donors must relate to similar services.

• Existing donors must be offered a simple means of opting out of receiving further communication from you.  

2.   Legitimate interest

The lack of clarity around ‘legitimate interest’ (situations where organisations can process personal data without needing explicit consent) has meant organisations have missed out on opportunities to attract new customers.

Under the new Bill, attracting and retaining donors through direct marketing is identified as a legitimate interest, and extended to charities, meaning you’ll be able to use it as a lawful basis to recruit new supporters. However, donors must have the right to object to marketing if they wish.

Cookie consent

Cookie consent will no longer be required when data is gathered to support website analytics. This means you’ll be better able to track how website visitors interact with your site and make changes to improve its performance.

Final Word

This is good news for fundraisers. It’ll bring electronic communication with supporters in line with print communications, and enable charities to approach supporters on the same basis as for-profit organisations.

If the Bill progresses as planned, the changes are unlikely to come into play until 2024, giving you plenty of time to assess your data protection practices and prepare for any changes.

This is where we come in. If you’re in need of a data-savvy fundraiser to check you’re compliant, we can help. Give us a call on 0203 750 3111 to get the ball rolling.