ACAT Weekly – Week 50 2025

This week’s news summary brings together the latest updates from the Fundraising Regulator, government and FSCS

There’s a reminder about the Code of Fundraising Practice and the changes to the living and minimum wage. There’s also some information about tainted donations, and Unity Trust Bank informs us about a change to the FSCS limit. Lastly, some information about an interesting government announcement to support young people, and a brief reflection on how churches could get involved.

I’m sure there is something here of interest. See you in the new year.

New Code of Fundraising Practice now in effect

New fundraising code now effective

#Charity Governance & Regulation, #News, #Encouraged Action

In our May Newsletter, we included an article regarding the new Fundraising Code of Practice, effective from 1 November. This is a gentle reminder that the new code is based on the following principles.

• Fundraising must meet the requirements of the law. 
• Fundraisers must be clear about their processes and willing to explain them when necessary. 
• Fundraisers must act with integrity and must not mislead people when asking for donations. 
• Fundraisers must respect the people and places they interact with.

The new Code of Practice focuses on three aspects summarised as:

Documenting fundraising decisions

• Only acting within your decision-making powers.
• Using available and relevant information and evidence to inform your decisions.
• Considering issues from different points of view.
• Identifying areas of risk and taking steps to manage them.
• Taking professional advice, where needed.
• Acting in good faith.
• Undertaking due diligence.
• Keeping accurate records and documenting your fundraising decisions

Due diligence and fundraising

• Check the identity, verify the legitimacy and suitability of your donations and donors.
• Check that the donations are not subject to restrictions, prohibitions or sanctions.
• Assess and manage the risks associated with your fundraising activities. 

Monitoring fundraising partners

• Ensure effective processes to monitor fundraising activity carried out on your behalf by fundraising partners.

It is respectfully suggested that members ensure that whoever is responsible for their church’s fundraising is aware of the Code and its requirements. More information can be read in the links below.

National Living/Minimum Wage reminder – Do we pay our church employees enough?

#Finance & Fundraising, #News, #Information Only

Whilst 1 April 2026 is over three months away, members who employ staff should be aware that the Government has accepted the recommendations of the Low Pay Commission in full. The National Living Wage/Minimum Wage will increase from 1 April 2026:

• For those aged 21 & over to £12.71 per hour
• For 18–20-year-olds to £10.85 per hour
• For 16-17-year-olds & Apprentices to £8.00 per hour

Note that the National Living Wage applies to workers over age 21, whilst the minimum wage will still apply for workers aged 20 and under.

This raises an interesting question. Do we pay church employees enough? Some things to consider:

• Churches rely heavily on dedicated staff and volunteers. They are frequently the glue that, humanly speaking, holds churches together. Do we appreciate them and respect what they do?
• Fair pay is only right. – It encourages and rewards effort, retaining quality staff, demonstrating that they are valued.
• Does your church have a clearly defined pay policy?
• Do you research comparable rates of pay and salaries among churches and voluntary organisations?
• Do you carry out annual staff appraisals in a transparent manner in accordance with recommended employment practice?

Does your church governing body formally express its gratitude to the staff and volunteers at the Annual Church Meeting?

Charity compliance & tainted donations

#Charity Governance & Regulation, #News, #Encouraged Action

This is the time of year when charities and churches alike tap into the public’s spirit of generosity.

On 5 December, the government issued an updated guidance note on what is known as “Tainted Donations.” A tainted donation is one in which a UK taxpayer donor seeks to obtain a financial benefit or advantage from the charity to whom the donation is made. 

Three conditions must be met for a donation to be a tainted charity donation.

If all 3 conditions are satisfied, the donor loses any tax relief that they would have been entitled to claim.

An additional charge to tax may also arise where the donation would have been eligible for relief under the Gift Aid Scheme (for individual donors only).

The 3 conditions to be met for a donation to be regarded as tainted are:

• The donation to the charity and arrangements entered by the donor are connected.
• The main purpose of entering the arrangements is for the donor, or someone connected to the donor, to receive a financial advantage directly or indirectly from the charity.
• The donation is not made by a qualifying charity-owned company or relevant provider linked with the charity to which the donation is made.

The detailed guidance, together with examples of tainted and untainted donations, is set out in the government note, which can be accessed by the link below.

Young people to benefit from Government £820 million expanded support – An Opportunity for Churches & Christian Businesses?

#Social Justice & Policy, #News, #Encouraged Action

It is estimated that approximately one million young people will benefit from learning or employment opportunities as a result of a major £820 million funding package announced by the government.

In summary

• Funding for 350,000 new workplace opportunities designed to support young people into employment.
• Additionally, young people on Universal Credit will benefit from dedicated support.
• From Spring next year, a guaranteed jobs scheme will be established in areas with some of the highest need identified as being
• Birmingham & Solihull
• East Midlands
• Greater Manchester
• Hertfordshire & Essex
• Central & East Scotland
• South West & South East Wales

Does this funding offer an opportunity for us to encourage?

• Young people in our churches who may be out of work or on benefits could be encouraged to investigate what support and workplace training is available.
• Church members who are senior business managers or own their companies/organisations could actively participate in the scheme by offering employment to young people if they do not already do so.

Any support the church can offer could be invaluable to helping young people as they become more involved in the ‘adult world’.

FSCS limit raised from £85,000 to £120,000

#Finance & Fundraising, #News, #Information Only

One of our partners in ministry, Unity Trust Bank, informed us that on Tuesday, 18 November, the Bank of England increased the FSCS limit from £85,000 to £120,000, effective from 1 December 2025.

Why does a higher limit matter?

For many, it’s peace of mind. If you’ve been saving for years, planning for retirement, or a big purchase like a home, this extra cover assists in keeping your money secure. And if you’ve just sold a house or received an inheritance, temporary protection now goes up to £1.4 million.

Stronger protection means more confidence in the banking system. That confidence helps banks lend for mortgages and to businesses, to fuel growth across the country.

See the below source of the official announcement from the Bank of England and some more information about the FSCS scheme and charities.