is unusual in that hostile competition is very rarely practised. The RSPB
and most other charities are aware that their members are also members of
other charities and that the very nature of giving to charity demands a level
of integrity from them.
The level of cooperation between charities is surprising for businesses of
their size. Charities involved in direct marketing meet on a bi-monthly
basis to discuss when mailings are being planned and so coordinate them
to avoid clashes of interest. This was especially useful when the RSPB and
the National Trust celebrated their centenary years and mailings were at a
peak. This meant that other charities could hold back on appeals and send
them when they were likely to be more successful.
Another example of this cooperation was seen in the launch of a charity
CAF (Charity Associations Fund) card account in 1996. Members of the
public can place all the money that they give to charity in one account,
receive a larger covenant on the total amount and then choose to direct the
funds to the charities they wish.
Legal requirements on charities
With the large amounts of money collected by charities, combined with the
diversity of different charitable organizations, regulation is becoming
increasingly more stringent. Charitable status is sought by organizations
because of the favourable tax status it confers. To achieve this status every
charity is required to register with the Charity Commission of England and
Wales. This body is then responsible for the supervision and regulation of
that charity. The Commission will draft and propose any new laws and
guidelines it feels fit and acts as a regulatory body to oversee charity activ-
ities.
In recent years the charities sector has been under increasing scrutiny. In
1993 864 charities were investigated by the Charity Commission for mal-
administration, malpractice and breaching various charities laws. The
activities of charities are also becoming the concern of the public, who give
their money based on trust. Unfavourable publicity on such matters can
unnerve the public and change their perception of charities.
Just such a spotlight recently fell on Guide Dogs for the Blind, who were
found to be holding over £100 million in reserves but spending only £28
million a year on training and care for guide dogs. The money in reserve
represented 16 years of operating costs (£6.25 million is the annual operat-
ing cost) and was in stark contrast to Oxfam, for example, who currently
hold only seven weeks’ operating costs in reserve. This created bad pub-
licity for the charities industry as the generous British public do not expect
their donations to sit in deposit accounts.
Charitable status also means that the benefits cannot be for the members
themselves. In the case of the RSPB, the nature reserves are for the benefit
142 Relationship Marketing