Fundraising in 2026: Key legal and regulatory changes for charities

As we move through 2026, charities face a range of important legal and regulatory developments that affect fundraising. These include an updated Code of Fundraising Practice, changes to electronic marketing rules, new expectations around Artificial Intelligence (AI), developments affecting subscription-style fundraising arrangements, and changes to charity reporting requirements.

Taken together, these changes reinforce the need for strong governance, transparency and clear decision-making in fundraising activities. Trustees and fundraising teams should ensure that they understand what has changed, what is expected of them, and what practical steps are needed to remain compliant while maintaining donor trust.

Alongside this article, we encourage charities to use the Birketts Fundraising Guide (available on our website), which provides practical guidance for organisations fundraising directly or with commercial partners and other third parties.

At a glance: what should trustees and fundraising teams action first?

Charities should consider the following priority actions:

1. Refresh internal fundraising policies to reflect the updated Code of Fundraising Practice, which has applied since 1 November 2025.
2. Review electronic communications with supporters, following the introduction of new rules designed to make it easier for charities to contact supporters by email (the “charitable purpose soft opt‑in” rules) on 5 February 2026.
3. Identify any subscription‑style fundraising or membership arrangements, such as memberships or regular benefit schemes, and prepare for changes to consumer law expected to be introduced from 2027.
4. Implement or review policies governing the use of AI in fundraising, ensuring appropriate oversight and transparency.
5. Review arrangements with paid third‑party fundraisers ahead of changes to regulatory thresholds expected in October 2026.
6. If running a prize draw, consider aligning practices with the new Voluntary Code of Good Practice for Prize Draw Operators.
7. Prepare for SORP 2026, which applies to charities with accounting periods starting on or after 1 January 2026.

The Code of Fundraising Practice

The Fundraising Regulator’s revised Code of Fundraising Practice came into effect on 1 November 2025. The Code sets the standards the Regulator will apply when considering fundraising complaints received on or after that date.

The revised Code is shorter and more principles‑based than its predecessor, with the aim of making it easier for charities to understand and apply. The core principles remain unchanged: fundraising must be legal, open, honest and respectful. A table highlighting the full extent of the changes is available here.

The Regulator has also published three supporting guides, which should be read alongside the Code. These cover:

• documenting fundraising decisions
• due diligence in fundraising
• monitoring fundraising partners

A key theme running through the revised Code is the importance of record‑keeping and accountability. Charities are expected to be able to demonstrate how and why key fundraising decisions were made. This includes, for example:

• decisions to accept, refuse or return donations
• due diligence carried out on donors
• fundraising risk assessments
• professional advice that has been obtained and considered

In practice, this means charities should ensure their policies and procedures support clear audit trails and that trustees are able to evidence appropriate oversight of fundraising activity. Given that the Code has now been in force for some time, this is an appropriate point for charities to review existing documentation and make any necessary updates.

Direct electronic marketing

From 5 February 2026, charities have been able to rely on new “charitable purpose soft opt‑in” rules for certain electronic communications with supporters. These changes are intended to make it easier for charities to send emails and similar messages in support of their charitable purposes. The new rules do not remove the need to respect supporter preferences, or to limit communications to what donors would reasonably expect.

To rely on the new rules, specific conditions must be met, including:

• the sole purpose of the communication must be to further one or more of the charity’s purposes (and not, for example, to promote unrelated commercial activity)
• the supporter’s contact details must have been obtained because they expressed an interest in, or offered support to, the charity
• supporters must be given a clear and simple way to opt out, both when their details are collected and in every subsequent communication.

These changes apply only to charities and do not extend to other not‑for‑profit organisations that are not charities, such as Community Interest Companies or Community Benefit Societies. The rules are also not retrospective, meaning they cannot be used to justify communications sent before 5 February 2026.

While the new rules are designed to be helpful, they do not remove the need for care. The Fundraising Regulator has emphasised that charities should avoid damaging public trust by sending communications too frequently or without appropriate sensitivity. Complaints may still be investigated under fundraising standards, even where the data protection regulator (the Information Commissioner’s Office) decides not to take action.

Charities should also be aware of research reports which have suggested that if donors consider that communications are received too frequently, this can deter engagement and has the potential to limit future donations.

Subscription contracts – changes expected from 2027

The Digital Markets, Competition and Consumers Act 2024 will introduce a new consumer protection regime for certain “subscription contracts”. While the Act is already in force, the provisions dealing specifically with subscription contracts have not yet been brought into effect, as they require further secondary legislation.

Following a government consultation and the publication of the Government’s response in April 2026, the current expectation is that the new subscription‑contracts regime will commence no earlier than Spring 2027. This represents a further delay from earlier proposed implementation dates and gives charities additional time to prepare.

Subscription contracts are broadly understood as arrangements where a consumer receives ongoing goods, services or digital content in return for regular payments, often with automatic renewal features. For charities, this may include certain membership schemes or subscription‑style fundraising models, although not all such arrangements will necessarily fall within scope and much will depend on the detail of the secondary legislation and associated guidance, once published.

Once introduced, the regime is expected to strengthen consumer rights, including requirements around clearer pre‑contract information, renewal reminders, cooling‑off periods and easier cancellation processes. The Competition and Markets Authority is expected to have enhanced enforcement powers, including the ability to impose significant financial penalties for non‑compliance.

While these changes are not yet in force, trustees and fundraising teams may wish to use this lead‑in period to identify whether any existing or planned fundraising arrangements could fall within the definition of a subscription contract and ensure that consumer‑facing fundraising models are transparent, fair and easy for supporters to understand and exit. Further detail will be set out in secondary legislation and guidance, which charities should monitor as implementation approaches.

Further information is detailed in a previous article, Implications for Charities of the Digital Markets, Competition and Consumers Act 2024. The Birketts Fundraising Guide also provides practical steps and insights for charities, including advice for engaging with commercial partners.

Use of Artificial Intelligence in fundraising

AI is increasingly used by charities to support fundraising activity, from generating content to analysing supporter data. The Fundraising Regulator has published guidance on the use of AI, emphasising that existing fundraising standards continue to apply.

Good practice includes:

• adopting a clear AI policy
• ensuring AI‑generated content is reviewed before use
• keeping records of where and how AI is used
• providing appropriate training or guidance for staff and volunteers

Charities should also be open about their use of AI where it may be relevant to supporters. Transparency helps maintain trust, supports compliance with the principle that fundraising should be open and honest, and reduces the risk of donors being misled about how fundraising materials are produced.

Changes to professional fundraiser thresholds expected in October 2026

A “professional fundraiser” is, broadly, a person who carries out fundraising as part of a fundraising business. Current thresholds are used to determine when someone falls within this regulatory category.

The Government has confirmed that these thresholds are expected to increase by 50% to reflect inflation, with anticipated new thresholds of £15 per day and £1,500 per year. These changes are expected to take effect in October 2026.

Charities working with paid fundraisers or agencies should use this lead-in period to review existing arrangements, contracts, and internal training to ensure they remain compliant with regulatory requirements.

Charities SORP 2026

The Charities Statement of Recommended Practice (SORP) 2026 introduces new reporting tiers for charities with accounting periods beginning on or after 1 January 2026. The revised structure is intended to ensure that reporting obligations are proportionate.

The new tiers are:

• Tier 1: income up to £500,000
• Tier 2: income between £500,000 and £15 million
• Tier 3: income over £15 million.

The updated SORP reinforces the need for clear and transparent reporting on income, including fundraising income, and the costs associated with generating it.

The Charity Commission has published further guidance for charities in preparing annual accounts and reports, which is available here.

Voluntary Code of Good Practice for Prize Draw Operators

Prize draws continue to grow as a fundraising method. In response, the Department for Culture, Media and Sport has published a Voluntary Code of Good Practice for Prize Draw Operators.

The Code recommends, among other things, greater transparency where a charitable contribution is made as part of a prize draw, including publishing information on donation amounts and frequency. Although voluntary, the Code reflects emerging expectations of good practice and should be considered alongside existing legal requirements, including those under the Gambling Act 2005.

The Birketts view

We regularly advise charities of all sizes on fundraising governance, regulatory compliance, and relationships with commercial partners and fundraisers. Our Birketts Fundraising Guide provides detailed, practical guidance for trustees, fundraising teams and senior management. The full 40-page guide can be accessed on our dedicated Fundraising page.

Charities will be best placed for 2026 if they embed good governance, transparency and well‑documented decision‑making into everyday fundraising activity. This article and our Fundraising Guide provide a starting point for reviewing current arrangements. Where issues are complex or high‑risk, obtaining specialist advice can help charities fundraise confidently while protecting reputation and public trust.