Charities rely on donations from the public. However, relying on money from the public comes with its issues. The public trust that the charity will ensure the money is collected in the correct way and also used for the correct purpose in which it was offered. Trustees have the overall responsibility and are accountable to the charity for how they conduct their fundraising. They play a key role in setting the approach to fundraising and how the monies are spent. The trustees must always act in the best interest of the charity, manage resources responsibly and act with reasonable care and skill.
In order to achieve this when fundraising there are 6 principles in which trustees are to consider:
- Plan effectively
The trustees are responsible for agreeing, setting and monitoring the overall fundraising approach. They need to consider the risks involved and also consider the wants and needs of the donors. A plan also needs to be in place to monitor the systems in place.
- Supervise fundraisers
The trustees have to be responsible for the fundraisers; these could be charity staff, volunteers and also companies who raise money for the charity. If something was to go wrong then the trustees are accountable, this is why systems need to be in place to monitor all fundraising activities. It is very important that all volunteers understand the rules on fundraising as they are representing the charity and the trustees need to ensure the reputation of the charity is not harmed in any way.
- Protect the reputation, money and assets of the charity
The trustees have a duty to protect and manage the charity’s reputation, money and assets. They need to be able to identify risks and work to mitigate those risks as quickly as possible. The Trustees are also responsible for monitoring costs so they need to be able to justify the fundraising costs.
- Ensure compliance with laws and regulations
There are legal requirements which apply to various types of fundraising, these can be very detailed and complex so the trustees need to ensure the charity is complying with all the legal rules such as data protection and licensing.
- Recognise any standards that apply
The trustees must ensure that the charity follows the Fundraising Regulators Codes of Fundraising Practise Standards, they guarantee that the fundraising is open, honest and respectful. The Commission expects that all charities comply with the code and the trustees are accountable for this.
- Ensure the charity is open and accountable
The trustees have to be able to, using reporting, demonstrate that the charity is running effectively and ensure that they are able to explain the fundraising work performed.
Please contact Lucy Hatton if you have any questions about charity fundraising.