The UK government has recently approved an email marketing rule that will pave the way for an estimated £290 million annual boost in charity fundraising. The amendment will allow charities to use “soft opt-in” rules, a privilege that was previously exclusive to commercial organizations only, enabling them to effectively contact supporters without prior consent if their details had been previously collected during a donation or interaction.
A game-changer for charities
The decision was made following a campaign led by the Data & Marketing Association (DMA), which wrote on behalf of charity members to the Science Secretary, advocating for a change to the Data (Use and Access) Bill. Unlike businesses that have enjoyed the “soft opt-in” privileges since 2003, charities were required to obtain explicit consent from individuals before sending a marketing communication until now.
An earlier attempt to extend this rule to charities failed even before the general election under a previous Conservative government. However, Lord Clement-Jones the Liberal Democrat peer has successfully reintroduced the clause, highlighting its ability to transform the charity’s fundraising landscape.
In his statement, Clement-Jones noted that the change would go a long way in empowering charities to connect with their donors as effectively as businesses communicate with their customers. The DMA also welcomed the move, describing it as a “significant step forward.”
“By extending this measure to charities, the government has shown its willingness to listen and act to unlock more fundraising opportunities. This will enable charities to strengthen supporters’ relationships, foster community ties, and enhance their impact.” noted the association in its statement.
Anticipated impact
The amendment is encouraging charities to adopt innovative marketing strategies to expand their donor base while maximizing contributions. The revised bill is currently being debated in the House of Lords and is set to advance to the Commons come February where the DMA expects a smooth passage, signaling a better future for the charity sector.
Charity advocates believe that this rule change will be pivotal in providing critical support amid rising challenges. As experts in the industry explained, charities often face challenges in staying connected to their donors, and this “soft opt-in” rule will offer a lifeline by reducing administrative barriers and promoting more effective communication strategies.
The move has been hailed as a vital measure to empower charities and enhance their ability to serve society better. With this rule change, the sector will stand poised to strengthen its impact while adapting to modern fundraising demands.
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