Accepting, refusing, and returning donations
Financial support from individuals and organisations is essential to deliver the aims of MindFood and we welcome partnerships with, and gifts from, a wide range of supporters. In exceptional circumstances, however, it may be necessary to refuse support if acceptance would compromise on our mission, values and aims, or threaten our reputation.
Compliance
As a registered charity, we comply with all relevant UK laws and regulatory guidelines, including those issued by the Charity Commission, HMRC and the Fundraising Regulator. In soliciting funds, we will not knowingly mislead or provide false information, nor put undue pressure on a donor, particularly if he/she may be vulnerable.
Policy details
MindFood is committed to making decisions in the best interest of the charity, participants, and staff. We transform lives each year with the help of our volunteers and the generous support of donors.
This policy ensures that we do not compromise on our mission and values when it comes to raising income. This policy governs the acceptance and refusal of donations by MindFood where there is perceived risk to our programming, staff, reputation, financial position, or brand in accepting a donation.
No personal views, or external pressures not related to our purposes, will influence us to act in a way that is not in our best interests. Any choice we do make will be adequately informed and evidenced.
By implementing this policy, we have a robust and informed decision-making process for all donations/partnerships/opportunities that are deemed high risk. This policy is reviewed regularly by our Board of Trustees and Directors. This policy applies to the activities of MindFood.
Our process
When deciding to accept, or reject, a donation we balance the impact on our beneficiaries of not accepting the funding, against the impact to MindFood in accepting a donation. That may include risks such as harm to participants interests or staff, reputational damage, loss of public trust and the risk of breaking the law.
Carrying out appropriate risk based due diligence, to mitigate risks to an acceptable degree assuring the provenance of any funds, and the people and partners we work with to identify and manage any associated risks.
We will consider the risks involved in refusing or returning the donation, and how likely and serious these are. These include negative financial impact, ability to deliver services and ability to attract donations in future. Alongside the risks involved in accepting or keeping the donation, and how likely and serious these are. These include the likelihood of reduced support or reputational harm, particularly among supporters or beneficiaries ensuring any decision aligns with our purpose. We will mitigate any risks by negotiating terms of any conditional donation with the donor with supporting explanations for any decisions.
We reserve the right to refuse any donations or terminate partnerships where the activities of the organisation or individual conflict with our goals.
All multi-year partnerships will be reviewed if any apparent risk is identified that a partnership has changed materially.
Individual donations will be accepted in good faith, presuming that the donation is acceptable, unless there is evidence to the contrary. Factors we will consider in making this decision will include any physical or mental-health condition, disability or learning difficulties the person may have, whether the person is facing times of stress or anxiety, whether a donation is likely to affect the person’s ability to sufficiently care for themselves or leave them in financial hardship, how well the person can speak and understand English, whether the person is under the influence of alcohol or drugs and the person’s age.
We will also take all reasonable steps to avoid asking for regular donations (for example, by direct debit) from anyone aged under 18.
Refusal of Donations
We will not accept a donation where there are reasonable grounds to believe:
- The individual or organisation holds views or is involved in activities incompatible with our values as a charity.
- The donation may be an attempted scam, or to launder money or evade tax, or is in some other way illegal.
- There may be private benefit linked to the donation, such as an obligation to purchase goods or services form a specified company.
- Conditions attached to the donation are so inflexible that they undermine our independence or are so onerous as to compromise our effectiveness.
- The cost of accepting the donation would exceed its value.
Fundraising and vulnerable people
MindFood has a full policy relating to fundraising and vulnerable people. Staff, volunteers, and partners follow this policy to ensure that vulnerable individuals are identified and communicated with appropriately.
Anonymous donations
The Charity Commission is clear that we are free to accept anonymous donations where there are no suspicious circumstances.
However, in line with guidance from the Charity Commission, donations over £25,000 where we cannot identify the donor are reported to the Charity Commission as a serious incident. We adhere to the Know Your Donor guidelines from the Charity Commission to ensure that donations are not received that may be linked to, or the proceeds of, criminal activity.
Restricted donations
We are happy to restrict funding (in certain circumstances) to specific areas of work. We may, however, refuse donations with restrictions that cannot be met, but will always seek to communicate with the donor, or the executors in the case of a legacy, taking advice from the Charity Commission if appropriate.
Equality Act 2010
We may also accept donations that limit benefits to people who share a protected characteristic under the Act, although this may exclude people with other protected characteristics. In keeping with the Act, MindFood will ensure that such cases will:
- Tackle disadvantage where it exists, and/or
- Achieve a legitimate aim in a proportionate way
Such donations would support planned charitable activity in keeping with our overall aims and strategy.
Gifts from employees, volunteers, and related individuals or organisations
We value support from all individuals and groups, this does not hold any additional benefits or preferment beyond the usual recognition and stewardship offered to all our donors.
Corporate Partnerships
These partnerships are an important way for businesses to show support, as well as involving their employees and customers in charitable activities. Any partnerships with companies will refer to the Modern Slavery Act, ensuring that they comply, and this is addressed before any partnership is undertaken. Care will be taken to review the benefits and risks to all parties before entering any partnership.
Recognition and Private Benefit
We welcome donations from commercial organisations, but will not accept donations where, in the view of the trustees, the purpose might reasonably be considered commercial gain. That is, by enabling the company to use its connection to MindFood to market itself to its customers and the public as ethical and an active supporter of our work, when it is not. For example, by promoting its support for our work when its own working practices, products or services do not reflect our values and activities.
The recognition given to funders will be no more than the normal thanks provided to any other similar donor. Nothing in addition to this is either expected or has been asked for – therefore we can be confident that any private benefit will be no more than incidental.
Money Laundering
Any evidence of money laundering is considered through due diligence, in line with the Know Your Donor guidelines from the Charity Commission, and Anti-Money Laundering regulations.
We will always question unusual donor requests (such as returning gifts via a different method to which they were received) as suggested within the Charity Commission advice.
Relevant external bodies and advice
Our policy is informed by the following external advice:
- Charity Commission:
https://www.gov.uk/government/publications/charities-due-diligence-checks-and-monitoring-end-use-of-funds - Chartered Institute of Fundraising:
https://ciof.org.uk/IoF/media/IOF/Policy/iof-acceptance-refusal-and-return-a-practical-guide-to-dealing-with-donations-(5).pdf?ext=.pdf - UK Government:
https://www.gov.uk/government/publications/proscribed-terror-groups-or-organisations–2 https://www.gov.uk/government/publications/financial-sanctions-consolidated-list-of-targets https://www.gov.uk/guidance/accepting-refusing-and-returning-donations-to-your-charity?utm_medium=email&utm_campaign=govuk-notifications-topic&utm_source=01776758-a4aa-4798-ae0d-c0f770217521&utm_content=weekly
Any updates to this advice will be taken into account when reviewing this policy.
Contact
Please let us know if you have any queries or concerns whatsoever about fundraising by emailing MindFood’s Director of Fundraising and Development Sarah Jones at sarahjones@mindfood.org.uk
Updated & approved March 2024