Fundraising failures: lessons from the GOSH charity investigation 

In a significant ruling by the Fundraising Regulator, Great Ormond Street Hospital Charity (GOSH) was found to have breached 11 standards of the Fundraising Code of Practice (Code). The investigation, prompted by concerns raised by an undercover journalist from The Times, revealed serious failures in respect of the oversight of fundraising practices – in particular, the actions of IBA Global (Subcontractor), engaged by GOSH’s professional fundraiser Acwyre (Agency). 

This decision serves as a timely reminder that charity trustees retain ultimate responsibility for all fundraising conducted in their charity’s name (even where the charity itself is not undertaking the fundraising). A charity, therefore, needs to have robust contractual mechanisms in place so that any party undertaking fundraising activities on its behalf operates lawfully and ethically. 

Regulatory findings 

In January 2024, GOSH reported itself to the Fundraising Regulator (Regulator), following the Times’ investigation, which raised concerns about actions driven by a performance-based culture at the Subcontractor, which prioritised sign-ups over ethical standards. In essence, it was found that the Subcontractor was using pressure-selling tactics to drive donations, a clear breach of the Code.  

Although GOSH had in place a comprehensive contract with the Agency, the agreement between the Agency and the Subcontractor lacked sufficient provision to allow the Agency to monitor the Subcontractor’s behaviour. It was also found that the Subcontractor’s training materials were inadequate, lacking in detail about unreasonable persistence, undue pressure and vulnerable circumstances.  

Whilst GOSH demonstrated a strong commitment to monitoring the Agency’s activities, the Agency’s oversight of the Subcontractor was insufficient. The Agency’s approach focused mainly on reacting to complaints rather than proactive compliance checks; this limited the effectiveness of GOSH’s own oversight.  

The Fundraising Code 

In addition to various legal obligations, charities that engage in fundraising will be subject to the Fundraising Code of Practice (Code). The Code, although voluntary, sets out key obligations with which a charity should comply to ensure that its fundraising is legal, open, honest and respectful. Particularly relevant to the GOSH investigation is the general obligation on a charity to ensure that its fundraising is “carried out in a way that reflects positively on fundraising” and this specifically includes “not putting undue pressure on a person to donate” and “not using unreasonably persistent approaches”. 

Where a charity is found to have breached the Code, although it will not face any legal sanctions, it could suffer significant reputational damage as the breach(es) will be published on the Regulator’s website and could be reported more widely by sector and mainstream press. Therefore, breaches of the Code can have significant consequences for a charity, which could see a reduction in revenue as a result of reduced donor confidence. 

The Birketts view 

Following the Regulator’s decision, charities should take the following proactive steps to reinforce compliance, transparency and ethical fundraising. 

1. Review fundraiser relationships 

Charities should reassess how they work with fundraisers, ensuring they have in place: 

• robust agreements that outline monitoring, compliance, and reporting expectations 

• effective oversight of subcontractors’ daily fundraising activities. 

2. Mandate minimum expectations 

Charities should ensure that fundraisers:  

• operate clear processes for monitoring subcontractor compliance 

• require all subcontractors to protect donors and adhere to ethical standards 

• have in place clearly defined reporting mechanisms to track subcontractor compliance. 

3. Strengthen training oversight 

Charities should work with their fundraisers to: 

• review and align training materials with the latest regulatory guidance 

• monitor how the fundraisers’ and any subcontractors’ staff are trained and assessed on compliance with the Code 

• understand the performance culture fundraisers, and their subcontractors, operate within, and require changes to that culture if deemed likely to engender behaviours inconsistent with the Code. 

4. Refine complaints analysis 

Charities should improve how complaints data is used by: 

• establishing clear methods for categorising and interpreting complaints 

• identifying complaint patterns, root causes, and potential risks 

• defining thresholds for concern and linking them to corrective action. 

Conclusion 

The GOSH case serves as a cautionary tale for the sector. As fundraising practices evolve, so too must the governance structures that support them. Charities must remain vigilant, transparent, and accountable, especially when outsourcing fundraising responsibilities. 

If you require advice or support with a review of your fundraising policies and procedures or with any contractual arrangements with professional fundraisers or commercial participators, please contact Ed Bouckley or another member of the Birketts Charities Team.