Thanks but no thanks: when is it right for charities to refuse donations?

The RNLI hit the headlines in December last year for refusing a donation from a foxhunting fundraiser.

The Dungarvan Foxhounds Supporters Club, in Co. Waterford, Ireland, had planned to raise money for the lifeboat organisation with ‘a bucket collection boosted by a cap donation’, at a New Year’s Eve meet.

After turning the donation down, the charity explained its reasoning in a statement.

“The RNLI is aware of an independent, third-party local fundraising event planned for New Year’s Eve that would see the proceeds of a foxhound’s hunt meet, go to the RNLI. This is not an RNLI event. As such, no donation for this event has been received by the charity. The RNLI reserves the right to decline donations that are not in keeping with the purpose and the values of the institution.

We will not be accepting any donations from this activity or related activities, now or in the future”.

Well said.

Opinion

Like every other charity in the UK, the RNLI is feeling the financial strain of the cost-of-living crisis.

Under the circumstances, you’d have thought the charity would welcome every donation with open arms.

However, the trustees decided to put ethics before income.

And the charity bagged a ton of positive coverage as a result.

Voice of the regulator

From an ethical standpoint, RNLI made a sound decision, but was it lawful? 

In a word, yes.

On its website, the Charity Commission says, “it is up to a charity’s trustees to make the difficult decision as to whether they should refuse a donation. They must make this decision on the basis of the best interests of the charity. That will include weighing up any issues around how the funds were raised, which may include reputational concerns, against the financial impact on the charity of turning the donation down.

Different charities may legitimately come to different decisions, and trustees can approach the Commission for advice if they are unsure about their approach.”

However, the Commission urges trustees to think carefully before returning or refusing donations.

It says, “the law generally expects charities to accept monies where they are available, in order to deliver on their purposes for the public benefit, and not to refuse or return them without very good reason.”

Further guidance

The Charity Commission is updating its guidance for charities on accepting and refusing donations.

It’s set to be published later this year.

In the meantime, you can familiarise yourself with the rules and regs with the Institute of Fundraising’s Practical Guide To Dealing With Donations.

The guidance outlines “the legal principles that you need to know, goes through the questions that you will need to think about, and provides practical help and advice so that you can make the right decision for your charity”.

Looking to build your fundraising team? You’ve come to the right place. Give us a call on 0203 750 3111 or email info@bamboofundraising.co.uk to get started.