Why do charity fundraising agencies need mystery shoppers?
Charitable giving has always been popular in the UK and after a history of unwanted behaviours which have thrown shade over charities reputation, it’s never been more vital to make sure that people feel confident to continue doing so. Face to face fundraising have had to revamp and adapt, with charity fundraising agencies (who employ fundraisers) making absolutely sure that conduct is consistently by the book.
The Code of Fundraising Practice gives clear outlines about what expected standards of compliant behaviour are, but how can interactions be monitored? Fundraising agencies alone can’t possibly keep an eye on everyone simultaneously! Enter mystery shoppers…
Mystery shoppers definition
So what is a mystery shopper?
Mystery shoppers, sometimes called ‘secret shoppers’, are people employed by professional mystery shopping companies, but can be freelance too.
They’re hired by research companies, retailers and fundraising companies who want to monitor and measure behaviour, service and performance of their employees.
Their purpose is to gather specific data without revealing their identity and purpose to the person being observed so as to get an authentic experience - hence the mystery part!
What do mystery shoppers do?
Basically the mystery shopper will pretend to be a genuine member of the public and go about purchasing a product or service, whilst observing various behaviours and scoring the employee accordingly.
Mostly conducted in person, there are also online mystery shoppers too.
When assessing fundraisers, mystery shoppers will behave exactly as a usual potential donor. They might enquire about the charity, register interest in donating, go through a sign up or even pose a couple of tricky questions.
In the case of professional charitable fundraising, mystery shoppers are required to ensure fundraisers are following the rules set out in the Fundraisers Code of Practice.
They’ll then take their findings back and write up an audit report, giving feedback on a number of pre-set questions as well as providing general comments about fundraiser conduct.
Why charities and fundraising agencies need mystery shoppers
Huge charity organisations have fallen down after blows of scandal and the inevitable poor press coverage. Unfortunately a few ‘bad eggs’ have contributed to a growing negative image and mistrust of charities among the public.
When charities are found to be non-compliant or corrupt, there are often big consequences which unfortunately only really punish those beneficiaries that the charities are aiming to help.
Obviously the good work that the charity sector does can’t be undermined and public image must been redeemed.
One of the ways to do that is through three key organisations, who are all working to restore and redefine the reputation of charities fundraising, as well as regulate charity conduct and how fundraisers operate.
These are:
The Charity Commission for England and Wales who regulate registered charities in England and Wales and maintain the Central Register of Charities
The Chartered Institute of Fundraising (CIOF) - A registered charity founded in 1983 who are also the professional membership body for UK fundraising. Their mission is to support fundraisers through leadership and representation; best practice and compliance, education and networking, whilst championing and promoting fundraising as a career choice
The Fundraising Regulator – The independent regulator of charitable fundraising in England, Wales and N. Ireland, established in 2016, replacing the Fundraising Standards Board
How are The Charity Commission helping to regulate fundraisers?
The Charity Commission created the CC20 Charities and Fundraising Guidance which outlines the 6 fundamental principles of fundraising and the responsibilities and duties of the trustees.
Notably, of the 6 principles, there are 3 that specifically stand out in relation to face to face fundraisers and what they’ll be evaluated against:
Supervising your fundraisers
This is about you and your co-trustees having systems in place to oversee the fundraising which others carry out for your charity, so that you can be satisfied that it is, and remains, in your charity’s best interests.
It means delegating responsibly so that your charity’s in-house and volunteer fundraisers, and any connected companies, know what is expected of them.
If you employ a commercial partner (such as Charity Link) to raise funds for your charity, the arrangement must be in the charity’s best interests and comply with any specific legal rules and standards that apply.
Identifying and following any recognised standards that apply to your charity’s fundraising
These are in the Fundraising Regulator’s Code of Fundraising Practice. The Code outlines both the legal rules that apply to fundraising and the standards designed to ensure that fundraising is open, honest and respectful.
The Commission expects all charities that fundraise to fully comply with the Code.
Being open and accountable
This includes complying with any relevant statutory accounting and reporting requirements on fundraising and using reporting to demonstrate that your charity is well run and effective.
In your fundraising communications it is about being able to effectively explain your fundraising work to members of the public and your charity’s donors and supporters.
How are The CIOF helping to regulate fundraisers?
The CIOF also contributed by created a reference guide called The Mystery Shopping Terms of Reference , which provides guidelines for mystery shoppers when visiting charity fundraisers.
It’s important to note here that the mystery shopper (agent) doesn’t decide whether a fundraiser has been compliant with the IoF Compliance Rule Books, or score them - that’s down to the compliance team at the IoF.
The mystery shoppers job is simply record their observations and interaction with the fundraiser.
The CIOF Mystery Shopping Terms of Reference
Interaction – Observation and Engagement Mystery shoppers (Agents) allow up to one hour to complete the visit. This is to allow time to locate, observe and engage with the fundraisers
Guidance on how to carry out the mystery shop, what to expect during the interaction and what they must take particular notice of, is provided in the Shopper’s Brief which Agents are required to read before beginning the assignment
The Agent will observe all fundraisers working at the site and note any actions which may breach rules such as the 3 step rule, failing to wear visible ID while working, working beyond site boundaries, smoking in branded clothing etc.
If a fundraiser does not engage the Agent, the Agent will approach a fundraiser. The Agent will carry out a sign up. The Agent records key aspects of the interaction by answering the relevant questions in a questionnaire.
The completed report is made available to the IoF Compliance team which will carry out an assessment of the mystery shop
A member of the team will read through the responses to all of the questions noting when responses to questions and comments suggest that a rule has been breached. The compliance manager will then deduct points where necessary adding comments explaining why and give a final score
Once the report has been assessed it is made available on the portals of the agency and charity represented, or in the case of in-house teams just the charity.
Any penalty points are added to the record of the particular agency or company and can result in fines and warnings from the Compliance Head of Standards
How is The Fundraising Regulator helping to regulate fundraisers?
In parallel, the Fundraising Regulator published the Code of Fundraising Practice which is a guide specifically for fundraisers and fundraising agencies to follow.
With regard to mystery shoppers, The Code of Fundraising Practice clearly states requirements for a fundraising agency or charity employers of fundraisers:
7.3. Monitoring that fundraisers are meeting the code
7.3.1 Ensuring that any paid third-party fundraisers or commercial partners you work with to fundraise keep to the code
7.3.2 Make all reasonable efforts to monitor whether the paid third-party fundraisers or commercial partners are keeping to the agreement you have with them (including the conditions of the contract which relate to keeping to the code).
“For the purpose of this code, making all reasonable efforts means that you must carry out effective and proportionate monitoring.”
The code goes on to define what monitoring is expected:
Regularly carrying out (and recording the results of) call monitoring, mystery shopping, site visits or shadowing with the other organisation’s fundraisers.
So we can see here that non-profit organisations and fundraiser employers must mystery shop and cannot decide not to do.
In the fundraising arena, it’s never been more important to maintain integrity and transparency. Whether fundraisers are working in private venues or as door to door fundraisers, the mystery shopper service gives the detailed insight and understanding that’s required.
Mystery shopper reports not only show any non-compliant behaviour, they also identify where opportunities might being lost on potential donations.
Ultimately, they also help increase trust between charity partners, the Institute of Fundraising and of course the general public.
What are mystery shoppers looking for when they visit charity fundraisers?
The things mystery shoppers look for when assessing fundraisers can include
Uniform
ID badge
Equipment and stand both in order
Social distancing
Approach method (How the fundraiser opened a dialogue)
Whether they read the ‘Notifiable Amount Statement’ to explain they’re a paid fundraiser and the amount the charity expects to gain in return vs their investment
Make it clear about how much the requested monthly donation would be
Administrative detail, such as the reason for two different signature boxes on the form
Details on options for cancellation
Emphasise the need for long term donors
Gift Aid explanation and invitation to consent
Data protection statement and how the FRs data will be used
Whether the fundraiser was polite, professional, appropriate and general presence
Not only does this information prove helpful to the fundraising agent to know they’re employing and training in the right way, it’s also a great way for the fundraisers themselves to know where they might be going astray.
In an industry where it’s vital to stay aligned with the expectations, mystery shoppers give an insight that’s simply not available through any other medium.
Do all mystery shoppers ask the same things?
No, there are different types of mystery shopper although the premise is the same. Some charity fundraising companies choose to do mystery shopping themselves, while others choose a consultant.
It goes without saying that by choosing an independent firm, keeping the identity of mystery shoppers will be easier and the work behind the ‘shop’ is someone else’s responsibility.
Depending on what the specific requirements are, mystery shoppers will observe and note different things. Mostly, results will be given in standard written reporting and the recipient will be scored according to which criteria they’re being assessed on.
The audits include a total score which is given as a percentage.
Anything that’s been identified as a problem is then discussed between the manager and the employee and if necessary further guidance and training is given.
Conclusion
The bottom line is that you can’t remedy a problem that you don’t know about!
The reputation of any charity is governed by how donors see you and fundraisers are your representative.
Regardless of your latest fundraising campaign, for a true reflection of how you’re presenting to potential donors, mystery shopping is clearly best and possibly only option.
The best mystery shopper companies aren’t seeking to criticise every micro detail, but to give a positive and balanced evaluation. And without a vested interest in the charity, mystery shoppers are completely impartial, interested only in looking at compliant behaviour.
That’s why secret shoppers visits should always be viewed as a real opportunity to grow and improve, rather than be demoralising for fundraisers.
Additionally, when fundraisers know that any passer-by is potentially a mystery shopper, the overall quality of performance rises.
Any good employer knows that reinforcing good behaviours and rewarding compliance will always help overall motivation and create a better work culture.
Charity Link are among the UKs top fundraising companies and we are so proud to offer charity fundraising jobs that are as ethical and compliant as possible.
Our industry leading training academy defines the importance of compliance from the very beginning and we have worked hard to help fundraisers avoid any misdemeanours and take pride in doing their work honestly and well.
In fact, our mystery shopper record is pretty exceptional and we know it’s because we only recruit the very best!
If you’re a people person and interested in a charity fundraising job and think you could be a good fit, we encourage you to read more about what’s involved
Alternatively, if you’re a charity that thinks we might be able to bring excellence to your standards, we’d love to hear from you too
