In order to promote your charity as an honest, trustworthy and worthwhile cause, you need to ensure that your fundraising efforts are ethical and transparent. For example, a charity’s reputation can be damaged irreparably if it is discovered that funds raised do not benefit the stated cause. When times are tough, it is more important than ever to ensure that your charity’s fundraising is ethical.
Charities should regularly review their fundraising policy to ensure that donors can be confident in the way their money is used. Fundraising publicity should be truthful and avoid exaggeration or underestimation of the facts. Fundraising material should describe how and where the money will be put to use.
Fundraising activities and administration of the charity should be undertaken as cost effectively as possible. Reporting on financial activity should adhere to the highest accountancy and legal standards and be entirely transparent. The amount of gross income spent on raising funds and on administration should always be made public.
If you pay your fundraisers a commission, you should ensure that you disclose this fact. There are mixed views on whether commission payments are ethical or not, because some people consider that they promote personal gain over the needs of the beneficiaries. As a charity, you also need to ensure that donations from ethically questionable sources, or sources that are inconsistent with the charity’s aims, are also addressed in your fundraising policy.
For expert advice on your charity’s fundraising policy, contact us.