Charity Fundraising Agreement

It is illegal for a commercial participant to claim, as part of an advertising project, that he or she is giving money to a not-for-profit organization, unless the claim is in accordance with a written agreement with the non-profit organization for which he or she is collecting funds. The agreement must be in writing and signed by both the business participant and the not-for-profit organization for which they collect donations. If your third-party fundraiser has or may have a conflict of interest, you cannot enter into an agreement with them without the permission of the person or organization whose interests conflict with their interests. If there is a significant conflict of interest, both parties must determine whether it is appropriate for the relationship to continue. You must have a written agreement in place with each paid third party or business partner you work with to collect donations. In England, Wales and Scotland, you must do this if the paid third-party service provider or business partner you work with falls within the legal definition of a “professional fundraiser” or “business participant”. In the case of a fundraiser, when the fundraiser verbally requests a donation, but the person they are asking for is not present (e.B. phone fundraiser), the professional fundraiser must make the appropriate statement during the conversation. In addition, within seven days of the donor`s payment of £100 or more, the professional fundraiser must provide the donor with a written statement with the notice of application and details of their entitlement to a refund or cancellation of the payment. If an agreement with a business partner falls within the definition of a “business participant”, the business participant must have a written agreement with the non-profit entity for which it intends to raise funds and certain information must be included. Third-party fundraisers who do not fall under the legal definition of a professional fundraiser must indicate the actual amount and how the payment is calculated in a proposal or agreement, and fully clarify all fees, expenses and other related costs, how their fees are calculated and the payment deadline. A professional fundraiser or business participant who has an agreement with you must allow you to view their books, documents and records related to your nonprofit upon request.

Examples of situations in which a fundraising company would act as a “professional fundraiser” would be when it is hired by a charity to obtain donations from new donors to the charity by: You must make all reasonable efforts to monitor whether paid third-party providers or business partners are complying with the agreement you have with them (including the terms of the contract, that relate to compliance with the Code). A “professional fundraiser” is defined in the Charities Act as any person or organization that carries on a “fundraising business”, that is, “a business that is carried on for profit and that is wholly or primarily engaged in the solicitation or obtaining of money or other property for charitable purposes, charitable or philanthropic”. You must agree on all procedures with professional fundraisers before fundraising takes place, including procedures for processing donor data and creating and using fundraising materials. If the third-party provider sells goods or services, a written agreement must be entered into that governs the relationship between the non-profit organization and the third-party fundraiser (even if this is not strictly necessary under applicable laws). In Scotland, solicitation standards apply to professional fundraisers who solicit donations, business participants who make representations, and benevolent fundraisers (other than volunteers) who conduct benevolent fundraisers and need to be tracked. If you place fundraising content on a third party or business partner`s website, you should take the same care as when you place it on your own website. Fundraising agreements between non-profit organisations based in England and Wales and professional fundraisers must also include the following: it is a criminal offence for a professional fundraiser or business participant not to comply with any of these conditions and trustees of a charity may have breached their duty of care if they do not make no statement. You can get more information and advice from the Scottish Regulator`s Office of Charities or you should seek professional advice. indicate in writing whether they will be paid (unless they are a charitable fundraiser and an employee or representative of the benevolent organization or business in question and they are fundraising). This may include the monitoring measures described in section 7.3 to verify that fundraisers are in compliance with the Code. The terms of the agreement should allow you to read and, if necessary, review all relevant policies and procedures that the professional fundraiser has in place that are relevant to the protection of the public.

This may include guidelines for people in vulnerable situations, handling complaints and whistleblowing, training materials and the Code of Conduct for Employees. .