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Please carefully review your Digital Proof download for formatting,
grammar, and design issues that may need to be correct...
The Five “I’s” of Fundraising
Suspects – Sources of Funding
Resources
Turning Suspects into Prospects
Checklist for Identi...
RESEARCH
- INTRODUCE YOUR
ORGANISATION AND
PROJECT
- DEMONSTRATING
LINKS/MEETING
CRITERIA
- ENGAGING
~ INTERACTING
- BUILD...
• Have they donated previously?
- Check computer and paper records.
• What are the objectives of the Trust/Foundation?
- A...
Research is very important, not just into
companies, but also into personal contacts. When
planning an appeal, an importan...
Some basic do not’s when applying to
companies
Do not write indiscriminate 'Dear Sir/Madam’
circular letters to any compan...
How companies reply to you
What sort of reply should you expect? If you do an extensive appeal, you will inevitably get a ...
Picture for a moment the expression of a child’s face and what might be going through their minds reading a airline
magazi...
• Is this project within our policy, priorities
and area of benefit?
• Is it clear - what do they want, why and
when?
• Ho...
• Think in terms of months not weeks
• trusts may meet only twice a year;
• sponsorship budgets may be committed 18 months...
A brief outline of the proposal
• Problem
• Solution
• Funding requirements
• Organisation and its expertise
- Why is this...
Then What?
- When is a decision likely?
- Try a gentle prompt
- Thank them!
- Report back (interest) - Invite to visit (in...
IOF INTERNET FUNDRAISING GUIDELINES
INTRODUCTION
UK charities
have been
using the
Internet
since the
mid-1990’s.
Today, th...
It is also handy to ask for a detailed style sheet
of the site's design so that you know which
fonts and colours have been...
To assess the benefits of proposals from such third-
party organisations it is worth considering the
following:-
Avoid sig...
The level of service, security and customer care
offered by online credit/debit card processors varies
dramatically. When ...
How many appeals can you run simultaneously?
Can they be different e.g. one-off donations,
prompted levels of giving, dire...
FUNDRAISING -FINANCIAL
MATTERS
(1) Find out what they want:
(a) Application/Budget
(b) Regular reports and returns
(c) Ann...
Have you considered the cash flow implications of the funding? When will you receive the
cash relative to when you have to...
Do not be afraid to charge VAT -provided it does not jeopardise your funding - it increases
the amount of VAT that can be ...
The Gift Aid scheme is for gifts of money by individuals who pay UK tax.
Gift Aid donations are regarded as having basic r...
To work out if you have paid enough tax to cover your donations, divide the donation value
by four. For example, if you gi...
Fundraising from Companies & Charitable Trusts/Foundations + Through The Internet
Fundraising from Companies & Charitable Trusts/Foundations + Through The Internet
Fundraising from Companies & Charitable Trusts/Foundations + Through The Internet
Fundraising from Companies & Charitable Trusts/Foundations + Through The Internet
Fundraising from Companies & Charitable Trusts/Foundations + Through The Internet
Fundraising from Companies & Charitable Trusts/Foundations + Through The Internet
Fundraising from Companies & Charitable Trusts/Foundations + Through The Internet
Fundraising from Companies & Charitable Trusts/Foundations + Through The Internet
Fundraising from Companies & Charitable Trusts/Foundations + Through The Internet
Fundraising from Companies & Charitable Trusts/Foundations + Through The Internet
Fundraising from Companies & Charitable Trusts/Foundations + Through The Internet
Fundraising from Companies & Charitable Trusts/Foundations + Through The Internet
Fundraising from Companies & Charitable Trusts/Foundations + Through The Internet
Fundraising from Companies & Charitable Trusts/Foundations + Through The Internet
Fundraising from Companies & Charitable Trusts/Foundations + Through The Internet
Fundraising from Companies & Charitable Trusts/Foundations + Through The Internet
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Fundraising from Companies & Charitable Trusts/Foundations + Through The Internet

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Rough Proof : Guide and reference to fundraising techniques, things to consider, and contacts for new, small, and emerging Groups/ Organisations in the charity sector seeking to improve their engagement with potential funders in the Corporate and Charitable Trusts/Foundations Sectors.

Published in: Government & Nonprofit

Fundraising from Companies & Charitable Trusts/Foundations + Through The Internet

  1. 1. Please carefully review your Digital Proof download for formatting, grammar, and design issues that may need to be corrected. We recommend that you review your book three times, with each time focusing on a different aspect. Once you are satisfied with your review, you can approve your proof and move forward to the next step in the publishing process. To print this proof we recommend that you scale the PDF to fit the size of your printer paper. Check the format, including headers, footers, page numbers, spacing, table of contents, and index. Review any images or graphics and captions if applicable. Read the book for grammatical errors and typos. 1 2 3 Digital Proofer Fundraising From Com... Authored by Mr Gordon Owen 6.14" x 9.21" (15.60 x 23.39 cm) Color on White paper 74 pages ISBN-13: 9781463511623 ISBN-10: 1463511620 Author & Publicist: Mr Gordon Owen • M Inst F • F Inst D • FIBA FUNDRAISING FROM COMPANIES AND CHARITABLE TRUSTS/ FOUNDATIONS & THROUGH THE INTERNET
  2. 2. The Five “I’s” of Fundraising Suspects – Sources of Funding Resources Turning Suspects into Prospects Checklist for Identifying Trusts/Foundations Checklist for Applying to Companies Preparation # Home Work Case Study # Example From the potential Donor’s Point of View 10 Top Tips Getting Beyond the Wastepaper Basket! Common Pitfalls Writing your Application Some Tips on Writing Style Then What? Reporting Procedures Fundraising on the Internet - IOF Internet Fundraising Guidelines About the Author © GPO • 2001. ing - CONTENTS -- CONTENTS - FUNDRAISNG FROM COMPANIES AND CHARITABLE TRUSTS / FOUNDATIONS & THROUGH THE INTERNET - start up costs - need right locality - need right theme - give £1.25 billion per year UK wide - organisational restrictions -sponsorship or PR potential -publicity materials -employee involvement -campaigns in schools -high profile projects - give £200 million per year - highly specific criteria - organisational restrictions – - make grants worth £320 million per year - local authority grants and contracts - ESF - complex – Discuss with the EU Office in Central London - Highly personalised – [Discuss with known sources of contact] Suspects – Sources of Funding - start up costs • Trusts and Foundations -sponsorship or PR • Companies - highly specific criteri i ti l t i t • National Lottery - local authority gr • Government - ESF • Europe - Highly personalised • Individuals © GPO • 2001.
  3. 3. RESEARCH - INTRODUCE YOUR ORGANISATION AND PROJECT - DEMONSTRATING LINKS/MEETING CRITERIA - ENGAGING ~ INTERACTING - BUILDING RELATIONSHIPS © GPO • 2001. The Five "I's" of Fundraising RE INTROD • INVESTIGATE - I O I• INFORM - D L • INTEREST - E ~ I • INVOLVE - B• INVEST - locality (national or local remit & where) - size of grant (match their capacity to your needs) - timing (match frequency of grant making to your schedule) - interests (how much commonality is there?) - degree of competition and likelihood of a grant - work required to submit an application - what relationship already exists - do you have any contacts or a lead in? - which you must check with fundraising before contacting © GPO • 2001. Turning suspects into prospects Steps to work through: locality (national or local remit & whe • in-depth research assessing: d f titi d lik lih d • looking at the bigger picture: - which you must check with fu • a list of prospects: © G • these are your potential donors!
  4. 4. • Have they donated previously? - Check computer and paper records. • What are the objectives of the Trust/Foundation? - Are we eligible to apply? • What is the giving capacity of the Trust/Foundation? - Look at their income and expenditure - what are they capable of giving? • What are the types of grants they normally give? - capital projects, scholarships, fund over several years? • What are their conditions for a grant and what are their exclusions? - Do we have to raise some of the money before approaching them? Geographical constraints? • When do the trustees meet? - Monthly, quarterly, as necessary? How far in advance do they like proposals? • Do they have a formal application form or guidelines? - Do they require a summary of the project first? • Who are the Trustees/Settler/Administrator? - Do we know any of them? • Do we have any Trustee contacts? - Do any of our Trustees know any of theirs? How can we make use of this? • What kind of projects do they like to fund and which part of our work is most likely to find favour? - Look at previous giving history. If unsure, seek advice from the Administrator. • How much should we ask for? - Look at previous history. If unsure, ask the Administrator. • Who is the best person to submit the application? - Director, Chairperson, Secretary, Fundraiser • Who should the letter of application be addressed to? - The Chairman of the Trustees, the Secretary, Administrator • Would the Administrator/Trustees like to visit? - Do they ever visit applicants' projects? Would they like to visit a project as an introduction to our work? © GPO • 2001 Checklist for identifying Trusts / Foundations This section gives basic information for putting together applications to companies. To make an effective appeal to industry you must have a basic understanding of why firms give. This enables you to put forward good reasons why they should support your work. Some companies in this guide receive up to 100 applications each week. You need to make a good case for yours to be successful. A company will not be particularly impressed with a general plea to 'put something back into the community'. They want something more substantial. You should be able to demonstrate a clear link with the company, be it geographical, product, employee contact, or some other connection. The main reason for company giving is often said to be enlightened self-interest, rather than pure altruism and they see their giving as 'community involvement' or' community investment'. The following are some of the reasons why companies give:- • To create goodwill. Companies like to be seen as good citizens and good neighbours, so they support local charities. They also like to create goodwill amongst employees. • To be associated with certain causes that relate to their business. Mining companies often like to support environmental projects, pharmaceutical companies health projects, banks economic development projects and so on. Because they are asked and it is expected of them. They know that other companies also receive appeals and give their support. They will often support trade charities such as a benevolent fund or an industry research organisation; beyond that they will probably pitch their level of giving more or less at that of their rivals. Because the Chairperson or other senior managers have a personal interest in that cause, this is particularly the case for smaller companies. Even where a company has well-established criteria for giving, if you can get a friend of the Managing Director to ask on your behalf, you are more likely to get a donation, even when your cause does not exactly fit those criteria. Generally it is worth emphasising the sheer chaos of company giving. Few companies have any real policy for their charitable giving. Mostly they cover a wide range of good causes or attempt to deal with each appeal on its merits. However, some companies do have a clear policy. Where policies are printed please respect them; dealing with a mass of clearly inappropriately applications is the single biggest headache in corporate giving and has caused some to consider winding-up their charitable support programmes altogether. There are a variety of ways in which companies can support charities:- • cash donations; • sponsorship of an event or activity; • sponsorship of promotional and educational materials; • sponsorship of an award scheme; • joint promotions, where the company contributes a donation to the charity in return for each product sold in order to encourage sales; • making company facilities available; secondment of a member of staff, where a member of the company's staff helps on an agreed basis whilst remaining employed (and paid) by the company; • contributing a senior member of staff to the charity's Management Board; • providing expertise and advice; • encouraging employees to volunteer; • organising a fundraising campaign amongst employees; • advertising in charity brochures and publications. Because they are asked and it is expected them. They know that other companies also receiv Key factors In approaching companies The main reason for company giv be enlightened self-interest, rather Why companies give? There are a variety of ways in w support charities:- What companies give? n gives basic information for putting lic tio s to co i s Even where a company has well-established criteria fo i i if o c t f i d of th M i Applying to Companies © GPO • 2001
  5. 5. Research is very important, not just into companies, but also into personal contacts. When planning an appeal, an important first step is to find which of the people associated with your charity have influence or know people who have. If you can find a link between one of your supporters and a particular company - use it activities to present to potential donors. You can build a percentage of administrative costs into the costs of the project. If you relate what you are doing to a specific time-scale, this again makes what you are applying for more of a project than a contribution to your year-on-year core costs. • One of your trustees/members may be on the board of directors or have contacts there - it will prove useful for them to write or sign the appeal letter. • One of your volunteers or supporters may be an • employee of the company. • Your clients/users (or their parents) may work for the company. Alternatively, you might be able to tie your appeal in to a known personal interest of a director. Generally an appeal through a personal contact will work the best. But if you haven't got a contact and can see no way of developing one, then you will have to come up with another link. As a first step you might contact the company to find out the following:- • who is responsible for dealing with charitable appeals • their name and job title • what information they can send regarding their company • any procedure or timetable for submitting applications • whether they might be interested in coming to see your organisation at work. Visits are useful when discussing bigger donations with the larger companies, but are difficult to arrange for anything small. Almost certainly your appeal will be in the form of a letter. Make this as personal as you can. Circular letters tend to end up in the bin. Make the letter short and to the point. Rather than sending out a circular mailing to 100 or 1,000 companies, you will be more successful if you select a few companies you believe will be particularly interested in your project, and target your application to them and their policy. (Many companies will not consider circular appeals as a point of policy). Find a good reason why you believe the company should support you and include this prominently in money on administration in one form or another, so you need to conjure up projects out of your current You may be able to relate what you are doing as a charity to companies which have some relevance to your work; for example, a children’s charity can appeal to companies, making children’s products companies, a housing charity to construction companies, building societies, etc. Any relationship, however tenuous, creates a point of contact on which you can build a good case for obtaining the company’s support. If there is no relationship, should you be approaching that company at all? There may be occasions where a charity will not want to accept money from a company in a related company's support. If there is no relationship, should you be approaching that company at all? A health education charity may not want to accept money from a tobacco or brewery company or from the confectionery industry, or similarly an environmental group may not wish to accept a donation from a nuclear power company. These may feel that as a result of doing so they would be seen to be compromised. Similarly, a local charity might not want money from a company who has made people in the area redundant. Each charity has to judge where it draws the line. You must be clear about the objectives of the work you are raising money for, particularly its time-scale and how it relates to your overall programme of work. Try to think in project terms rather than seeking money to cover basic administration costs. This can be difficult, because most people spend most of their thinking money, and focusing on the ‘inputs’ and ‘outcomes’ Do not underestimate the persistence factor. If you do not receive a donation in the first year, do not assume that the company will never support you. Go back a second and even a third time. Research is very companies but also i Research Generally an appeal thro k th b t B t if Getting in touch You must be clear about the objectives of the wor i i f i l l i i l Be clear about why you need the money Do not underestimate t not receive a donation Be persistent Rather than sending out a circular m Be specific in your approach If you are going back, mention the fact that you have applied to them previously, perhaps saying that you are now presenting them with something different which may be (you hope) of more interest to them. If they give you reasons for refusing support, use them to help you put in more appropriate applications in the future. If they said that they do not give to your particular type of activity then you know that it is absolutely no use your going back. If they said their funds were fully committed, you can try to find out when would be a better time to apply (although it might only have been a convenient excuse because they did not want to give to you). Note the response to your appeal and use any information you can glean to improve your chances the next time. People respect persistence, so it really is important to go back again and again. The firms to approach must depend on what sort of organisation you are. If you are a national organisation then an appeal to the country's leading companies is appropriate. Local groups should approach local firms and local branches of national companies which have a presence in their area. All organisations can approach companies in allied fields: for example, theatres can appeal to fabric companies. You will find the names and other details of companies in a whole series of useful directories and publications. • The Times 1,000 • The Kompass Register of British Industry & Commerce – [available in regional sections] • Guide to Key British Enterprises • Stock Exchange Official Year Book • Jordan's Top Privately Owned Companies – [2 volumes] • The Directory of Directors and Who's Who are useful for finding out more about company directors. • Corporate Register - updated quarterly - a guide to makers in UK Stockmarket companies. • The appropriate regional section of Kompass. • The local Chamber of Commerce. • Confederation of British Industry – Regional contacts. • The Institute of Directors. Whichever directories you are using make sure they are up-to-date copies. Company personnel and/or donations policies change regularly © GPO • 2001 One big problem is the ownership of seemingly independent companies. Many companies are in fact a part of a much larger concern. In recent years there has been a substantial number of mergers and take-overs, plus the buying and selling of business between corporations. A useful source of information is the directory Who Owns Whom, which has a subsidiary index listing most subsidiaries of companies included in the guide. You can also use company annual reports, which (for most companies) can be obtained on request. These reports provide good background information on the company, and occasionally information on the company's corporate support programme. Some private (and occasionally public) companies will not send out annual reports except to shareholders; in such cases you can go to Companies House to get hold of a copy. The main offices are situated in Cardiff, Edinburgh, Belfast and London, with satellite offices in Birmingham, Glasgow, Leeds and Manchester. Finally there are national and local newspapers which can provide useful information and ideas about who to approach. Informal sources or information may include the local business school, rotary, round table, Chamber of Commerce, Business Breakfast Clubs, as well as clients of your auditor, banker, legal advisor or suppliers. How to find out which firms to approach? The firms to approach must depe organisation you are If you Sources of information: To find key contacts in companies: You should state why ou need the money and exactly how it will be spent. The letter itself should be straightforward. It should include the following information (not necessarily in this order): what the organisation does and some background on how it was set up; whom the organisation serves; why the organisation needs funds; how the donation would be spent if it were to be forthcoming; and why you think the company might be interested in supporting you. The types of companies that give If you want gifts in kind, you should find likely suppliers of what you need. Trade associations will often provide a list of its member companies. Another idea is trade list of its member companies. Another idea is trade exhibition catalogues which give details of all exhibitors.
  6. 6. Some basic do not’s when applying to companies Do not write indiscriminate 'Dear Sir/Madam’ circular letters to any company you come across. Do not use any guide you may have access to as a simple mailing list. Do not write to a company which specifically says it does not support your kind of work. Do not write to a company unless at least one of the following applies:- • The company has a declared policy indicating a specific interest in your group's area of work. • The company operates in the same locality as your group and a clear product link exists between your needs and their supplies. • You have a strong personal link with a senior company officer, or a member of their staff is actively involved in your work. • There is some good reason to write to that particular company. The fact that the company makes a profit and your group needs money is not a sufficiently strong link. Many of the large multi-nationals have global giving programmes. Some have an international structure for managing their giving with budgets set for each country and a common policy for the sorts of activity they are interested in supporting. small budget to spend on charitable projects of its choice. Others may give each country a small budget to spend on charitable projects of its choice. With others, community involvement policy remains a purely local matter for company management in the country concerned. Many support large national charities, of which many have departments set up to raise money from companies. Some make grants through regional offices and most will give preference to charities local to their main operating sites. There are also companies that have a regional remit, such as water, electricity and television companies. The support of these companies is usually confined within these regional boundaries. Almost everyone is targeting the large companies, because good information is available on these for fundraisers and there is little available information on smaller local companies. Many of these are privately owned and the approach will often be through the ‘Chairman Chief Executive’ or ‘Managing Director’, or ‘Senior Partner’. Most of these companies will have no policies about what to give to and may prefer to give in kind, for example a prize for a raffle, or a fundraising event. It might be easier to approach these companies for this sort of support in the first instance; and later on, (once they have given something), to persuade them to make a cash donation. • Think up a project or aspect of your work that the business sector might like to support. Generally, do not appeal for administration costs or a contribution to an endowment fund (although there will be cases where this approach will succeed). Recognise that companies are likely to be interested in some ideas and not others. For exarnple, a drugs charity would be more likely to get money for education than rehabiilitation. An appreciation of the kind of projects that companies like to support will be very helpful to you. Many of the large multi-nationals have global giving Foreign owned multi-national companies There are also companies that have a regional remit, For local companies in addition to this guide:For local companies in addition to th Leading national companies Smaller local companies Constructing an Appeal Letter In any city or region there will be large companies who are important to the local economy. These companies will often feel a responsibility to do something to support voluntary action and community initiatives in those areas, and value the good publicity that this will provide. It is a good idea to form some kind of relationship with larger companies in your area information (not necessarily in this order): what the organisation does and some background on how it was set up; whom the organisation serves; why the organisation needs funds; how the donation would be spent if it were to be forthcoming, and why you think the company might be interested in supporting you. • Think up a project or aspect of your w business sector might like to support G Important points to consider:- Many natio which many have departments set from companies. Some make gran Larger local companies The Application Letter – Checklist • Is it only one side of A4? • Does it state what your link is with the company? • Does it stress the benefits to the company? • Is it clear why you need the money? • Is it clear what you are asking for? • Is it addressed to the correct contact? • Is it attractive to the company? • Is it endorsed? • Applying to companies • Your letter should be as short as possible. Try to get it all on one side of A4. You can always supply other information as attachments. Company people are busy. You can help them by making your appeal letter short and to the point. It should be written clearly and concisely and be free from jargon. Someone not acquainted with what you are doing should be able to read and understand it and be persuaded to act on it. Give your letter in draft to someone outside your charity to read and comment on before finalising it and sending it out. • You should attempt to communicate the urgency of your appeal. Fundraising is an intensively competitive business; there is a limited amount of money to give have to ensure that some of it comes your way. If it appears that although you would like the money now it would not matter terribly much if you got it next year, this will put people off. But do not give the impression you are fundraising at the last minute. Show them you are professional and you have carefully planned your fundraising appeal. You should also try to show that your charity is well-run, efficient and cost effective in how it operates. • As for something specific. It is all too easy to make a good case and then to mumble something about needing money. Many companies, having been persuaded to give, are not sure how much to give. You can ask them to give a donation of a specific amount, (matched to what you believe their ability to contribute to be), or to contribute the cost of a particular item. • You can suggest a figure by mentioning what other companies are giving. You can mention a total and say how many donations you will need to achieve this. Do not be unreasonable in your expectations. Just because a company is large and rich, it does not mean that it makes big grants. • If you can demonstrate some form of’ leverage' this will be an added attraction. Company donations on the whole are quite modest, but companies like to feel they are having a substantial impact with the money they spend. If you can show that a small amount of money will enable a much larger project to go ahead, or will release further funds say on a matching basis from another source, this will definitely be an advantage. • Having written a very short appeal letter, you can append some background support literature. This should not be a fifty-page treatise outlining your latest policies, but like your letter it should be crisp and to the point, a record of your achievements, your latest annual report, press cuttings or even a specially produced brochure to accompany your appeal. • Make sure that the letter is addressed to the correct person at or the correct address. It pays to do this background research. Keep all the information on file as it will make your job much easier next time. • If you are successful, remember to say thank you; this is an elementary courtesy which is too often forgotten. If the company gives you any substantial amount of money, then you should probably try to keep them in touch with the achievements related to their donation (such as a between the lines. • Companies in trying to be polite may in brief progress report or copies of your annual report or latest publications). • If you do not succeed, go back again next year (unless they say that it is not their policy to support your type of Organisation or to give to charity at all). Persistence can pay. If you have received a donation, go back again next year. The company has demonstrated that it is interested in what you are doing and in supporting you. It may well do it again next year, especially if you had thanked them for the donation and kept them in touch with how the 'project' developed. • You should mention why you think the company should support your cause. This could range from rather generalised notions of corporate responsibility and the creation of goodwill in the local community to much more specific advantages such as preventing children painting graffiti on their factory walls or the good publicity companies will get from supporting your cause. If the firm's generosity is to be made public, for example through advertising or any publicity arising from the gift, then emphasise the goodwill which will accrue to the company. Most companies would say that they do not require any public acknowledgement for the contribitions they
  7. 7. How companies reply to you What sort of reply should you expect? If you do an extensive appeal, you will inevitably get a lot of refusals. These will normally be in the form of a pre-printed or word-processed letter or a postcard. Occasionally you will get an individually typed letter of reply. If they say yes, you will get a cheque or a Charities Aid Foundation Charities Trust voucher. But more often they will say no. There may be various reasons given or phrases used by a company for refusing your request. The company may not mean what it says. Funds may still be available for those appeals the company wishes to support; the company may be able to give support and just not want to; or it may not want to now or in the future. You should try to read fact be misleading you if you take what they say at face value. Identify the need and research study • What is exactly required • Why the need • Who will benefit • Provide facts and figures to support the need; area in which it will operate; and the people it is aimed to aid. • Provide all data to grant body in advance to study. • Support with presentation summary + any graphical material possible - • if a building - a visual drawing of what will look like • if children - photo of them showing expression of disappointment of not having the ability to benefit and image the excitement of what the expression would be from the benefits and skills achieved from meeting that need. • Create develop positive image of the scheme • Publicly material • Costings - Broken down into Capital Revenue - Budgets - Projections Shopping list of anything in terms of good needed (with costs) to enable smaller potential contributors to be able to support and be able to identify specifically with what they have given in support. Who appeals will be target at:- - Trust / Companies / Central Local Government Departments/ Lottery / Euro funding Prepare appeal letters and supporting material:- - Identify voluntary statutory authorities who will be invited to be involved. - Identify any other useful contacts to help achieve goals. - Programme - Time-table - Development Plan - Enables (a) Monitoring; (b) Determine strategies to achieve goals © GPO • 2001. Identify the need and research study PREPARTION # HOME WORK
  8. 8. Picture for a moment the expression of a child’s face and what might be going through their minds reading a airline magazine on holiday about other children travelling abroad on exchange trips. Imagine their thoughts when such opportunities are disappointingly not been available to them. Given the opportunity and resources that this project provides - Imagine - the expression of excitement and happiness on the face of a child who is told - here is a chance for you to participate. Think of the educational and cultural value helping them to understand and value others as people. Determine need: - What is the Project? A outer London Borough with a population of around 27,100 - high-rise flats, terraced housing. But it is home to the people and families. The people live happily engaging in professions, activities and interests with a host of skills. Along side this for the young are some 200+ youth clubs organisations that make-up the youth service in the Borough. Trips to a variety of places in and around London, counties and even countries are organised by different youth organisations - to sight see, bike, camp and so on. We visit these places but rarely do we have the time, chance or inclination to meet, talk and live in these places for educational trips. The hostel currently provides accommodation to enable educational exchange trips to be complimented in situations where reciprocal visits are not possible because families do not have the space to accommodate visiting people from other counties and countries. It is designed and caters for groups of between 12 - 30 people, as distinct from individuals. Sought assistance from Local Authority Architects to produce conceptual drawing to create visual concept of what the building would look like once converted. Negotiated Lease Building Agreement for 15 years (with option to continue) with the Local Authority - therefore have the land. Engaged (at no cost), Architects Quantity Surveyors to design and cost-out the building works of existing phase I of the project Worked with architects and QS to prepare works specifications and tenders. Liaised and work with final appointed contractors and sub-contractors to complete works. Worked through processes to expedite Building Regulations approval and Planning Permission. The Phase I initial official opening was so successful that no less then 50 Trusts alone, apart from another 100+ dignatories attended securing relationships for the future in terms of support and future funding. Some even offered more help at the time and subsequently helped again. . Had a scale model of the building made to exhibit for consultation with youth organisations and schools in the borough. Also took this model to some presentation meetings with Trusts. Proved successful. Picture for a moment the expression of a child’s face and what m NEWHAM YOUTH LODGE HOSTEL PROJECT: CASE STUDY # EXAMPLE Sought assistance from Local Authority Arch the building would look like once converted. Work Involved -- Historically: Other promotional and publicity produced to include brochures with list of contacts to arrange direct exchanges, information on hostelling and graphics/photos. Plus: translated material languages + in Braille for the blind. Initiated and designed logos to project image of the project. Met and subsequently registered with the English/London Tourist Board and British Tourist Authority who included the project in their handbooks translated for a number of countries to generate interest and future use. This task has successfully underpinned revenue income. Feedback from youth groups and schools were initially mixed but enough to qualify the project being forthcoming. Clearly the building would be used - others uncertainties from some potential users with in-house commitments - later a significant number of these came on board and participated. Visits made to each group to coordinate. Secured arrangements with local City airport for groups and have made many visits using the airport to discuss future arrangements. During the VE/VJ commemorations earlier this decade, worked in partnership with the International Duke of Edinburgh’s Award and hosted a group of people from some 14 countries around the world and a informal dinner for some 150. Co-ordinated arrangements with the main activities in Hyde Park and arranged trips for visitors. So successful was this venture that a invitation from the Duke of Edinburgh and Prince Edward to attend a Garden Party at Buckingham Palace was received and attended. Thousands of people, representing youth groups from all over Europe, Asia, Africa, Scandinavia, US, Canada, Australia and latterly the former Eastern block now visited the Borough putting them and the Organisation clearly on the map - moreover, think of the children young people who benefited as a result from the Borough! • Feasibility Study [So as to be official recognised and accredited] - Grant-aided by CAF. Made shopping list of items required within the building to furbish, equip and furnish hostel. Sent this list to a initial host of some 500 manufacturing companies with information about the project, a brochure and covering appeal letter. Prepared and submitted grant-aid applications to the Local Authority, Department of the Environment and a variety of Trusts researched for initial funding required of £250k. Applications were successful and total monies needed raised. Building also took on needs for disabled and separate funding secured to provide for this, e.g. wider doors, disabled toilets showers, ramp, easier access to phone etc. Before the decision of this was known a quarter of the manufacturing companies written to had positively responded pledging a variety of furnishings and goods for the buildings, including carpet tiles, bunk beds, office equipment, kitchen equipment etc. Successfully secured sponsorship from the British Council to personally visit the Borough’s twin-town in Germany to carry out study and to promote the project. This included producing a brochure translated in German to distribute. Subsequent to approval, received invitation to be a civic guest of the town by the Oberburgermeister (Lord Mayor). In the early stages we spent fruitful week visiting hostels and youth groups in and around town. Secured a scholarship through the Churchill Foundation to extend study to the US and visited a variety of hostels operated and again promoted project. Conceived idea of aesthetically improving the external of the building by introducing figurative murals on the external walls. Engaged a artist to produce concept ideas based on the history of the Borough. Later secured monies and paints/materials to bring this to reality and some 7 12ft high murals painted based on different historical elements of the Borough - introducing a new element in terms of companies/organisations who would otherwise not have become involved and who were interested - plus excellent publicity! This included dealing with all the processes for further Planning Permission with the Local Authority. Secured revenue funding from the former LDDC for salary to employ first member of staff, e.g. Administrative Secretary to facilitate the project. Prepared job advert and job description/ specification + contract for this post. The project has provided a real need for almost two decades. Now reached a cross-road with entire site under a new development with the intention of demolishing school and hostel and build purpose built accommodation - exciting future ahead. The proposed new purpose built hostel for international youth exchanges will cost a quarter of a million pounds. The research in support of this has been supplied. Equipping furnishing will not be such a costly task with existing resources from the current building being moved into the new complex when complete. Part of this exercise is underway in terms of upgrading and replacing old items so as to suitable compliment the needs of the new building. • Feasibility St Funding:
  9. 9. • Is this project within our policy, priorities and area of benefit? • Is it clear - what do they want, why and when? • How do we know they can do it? • Who are they- do we know this organisation? • What are the implications for the future? • Has anyone else supported this project? • Do we expect to get anything in return? FROM THE DONOR'S POINT OF VIEW 1] Address your appeal to the right person 2] Tailor your appeal to the prospect 3] Include a clear statement of Organisation's work and objectives 4] State clearly how much money you need and include a budget 5] Tell them what the money's for 6] Break a large appeal down into realistic chunks for particular items 7] Include the latest accounts 8] Offer to go and see them and follow up the letter within a week 9] State the benefits for them 10] Be positive and upbeat about the Organisation and your ideas © GPO • 2001. 10 Top Tips
  10. 10. • Think in terms of months not weeks • trusts may meet only twice a year; • sponsorship budgets may be committed 18 months ahead. • Read up on their policy and priorities. • How much do they normally give? • Find out the right contact name • When is the best time to apply? • Do they issue guidelines • How do they like to be approached? • Identify unique selling points • Package specific needs • Prepare a proper budget • Is it cash you need? • Is it sponsorship or a donation? • Consider unit costs or a choice of costs • Sponsorship benefits • Organise your information • Gather supporting documents • Decide on a format • Avoid jargon • Bring out human interest • Generate emotion, belief and commitment • Break up the text include a summary • Do not forget enclosures © GPO • 2001. GETTING BEYOND THE WASTEPAPER BIN! • Think in terms of m PLAN AHEAD • Read up on their policy and prior • How much do they normally give RESEARCH THE DONOR • Identify unique selling points • Package specific needs PACKAGE YOUR PROJECT • Decide on a format NOW YOU CAN WRITE IT! • Organise your information PLAN THE PROPOSAL Common Pitfalls • Dear Sir/Madam. There is no excuse for not addressing a named correspondent and preferably the correct name! Circulars waste time and money. • Long-winded and vague appeal letters. Be concise and precise - most letters will be scanned. • Not understanding the commercial world. Companies want to know what they will get out of it. Companies expect some good publicity, even from a donation. • Not stating what you want. Many appeals give lots of information, but the donor is left wondering what you actually want from them. Be very clear what you are asking for and why. • Insufficient time. Plan ahead and appeal in good time. If you want the money next week it suggests bad planning, • Wrong address. Appeals may end up on the right desk, but a two week delay is unhelpful and creates a bad impression. • Tactical error. When sending photographs to Kodak in support of an appeal, do not send a Fuji film! • Not valuing their time. Applications should consist of a short letter. Do not say all the information is in the enclosed video! • Being unrealistic in what you ask for. • Lack of professionalism. Appeals, particularly by telephone need to be carefully thought through. Trying to make them feel guilty rarely produces a positive response. © GPO • 2001.
  11. 11. A brief outline of the proposal • Problem • Solution • Funding requirements • Organisation and its expertise - Why is this project necessary? • The problem - evidence of need, facts and statistics • Who are you helping? - comments and quotes from beneficiary group/s • Why is the issue important? • What would be the consequences if nothing was done to address the need? - Nuts and bolts Show the project will be implemented • Objectives • Methods • Staffing and administration • Monitoring and Evaluation - what will they get out of it? • Business benefits, e.g. value of press coverage and PR • Corporate citizenship, and how it fits with their aims • Opportunities for employee involvement through volunteering • Opportunities for in store/branch promotion • Branding on promotional materials • Networking and contact with key government figures - Financial description of the project • How much the project will cost in total? • How much will you need from the funder? • Income already received or expected - Introduction and background to your Organisation • History • Main activities • Location and size • Aims and objectives • Beneficiaries and services - Summary of the proposal 's main points WRITING YOUR APPLICATION A brief outline of the proposa EXECUTIVE SUMMARY • Problem • Solution THE STATEMENT OF NEED - Nuts and bolts Show the project w PROJECT DESCRIPTION - what will they get out of it? BENEFITS FOR THE PROSPECTIVE DONOR - Financial descripti BUDGET - Introduction and background ttt • History ORGANISATION INFORMATION - Summary of the propos CONCLUSION • Use shorter sentences and avoid overly complicated sentences • Use a PC/Mac and the spell check! • Include a summary • Improve the visual appearance and readability by using shorter paragraphs, headings, sub-headings and indented tabulations • Ask someone to check it for errors, typos and clarity • Vary the length of sentences and paragraphs - it makes it easier on the eye and helps the reader • Use smaller rather than longer words • do not forget the enclosures! • Avoid unsubstantiated superlatives, such as woefully inadequate • Avoid jargon. Write as though you are presenting the information to a friend who has no knowledge of what you do • Write for the reader, with an understanding of their level of knowledge and their perception of the issue • Avoid the use of words or concepts that may be controversial • KISS - keep it short and simple, but say all that you need to say. They may have stacks of requests to sift through • Make it clear and logical © GPO • 2001 se shorter sentences and avoid overly complicated sentences Some tips on writing style
  12. 12. Then What? - When is a decision likely? - Try a gentle prompt - Thank them! - Report back (interest) - Invite to visit (involve) - Send Action etc – [inform] - Thank them! - Speak to them (interest) - Invite to visit/meet (involve) - Send Action etc – [inform] © GPO • 2001 Wh i d i i lik • KEEP TRACK T tl t • NO REPLY? - Thank them • YES Th k th • NO • Follow any given reporting guidelines/requirements. • If these are not clear, clarify with the funder. • Ensure you report to the funder on time. • Invite the funder to become involved where appropriate (attending launch events etc). • Keep reporting information brief and to the point, with a fuller report at the end of the grant, including whether the objectives of the work were met. • Enclose relevant information with your report such as financial update, publicity materials and photographs. • Offer the funder the opportunity to discuss the work or to request more information at any time. • If there are problems with the work, keep the funder fully informed. • If you are planning any changes to the way you are going to spend the money from what was originally proposed, seek the funder’s permission first. Be prepared to change your plans or payback the money if they decline permission. • Inform the funder of any key staff changes or funding information. © GPO • 2001 Keep the funder informed of the progress of the workKeep the funder informed of the progress of the work REPORTING PROCEDURES
  13. 13. IOF INTERNET FUNDRAISING GUIDELINES INTRODUCTION UK charities have been using the Internet since the mid-1990’s. Today, the number of charities using the Internet in increasingly diverse ways is mushrooming, and with it grows the range and number of online fundraising opportunities that they are being offered. Charity web sites spring up in different ways, and very often the 'advisor' or the 'expert' being used can have little or no knowledge of the charity and its fundraising practice. It is therefore timely that charity fundraisers are given some guidelines on best practice and the opportunity to take a full and informed role in the development of their organisation's online conduct. The committee which developed this guide brought together a wide range of relevant skills. These included legal, consultancy, online donation handling, online event management, trading, research, and web publishing. Fundraisers and suppliers/agencies were both represented. The guidelines presented here address Internet fundraising in two parts. Firstly, they cover your charity's own organisation's web presence in terms of its web site(s) and e-mail communications. Secondly, they cover relationships with third parties who provide charities with a wide range of online services. They are designed to be used by all members and affiliates of IoF. A basic awareness and experience of the Internet is assumed but otherwise the guidelines are designed both for those new to using the Internet to fundraise and for those with more experience. Many of the guidelines will be familiar, since rules covering data protection, trading, contracts and other legal requirements apply as much to online fundraising as to traditional fundraising. Ethical considerations are included also but for the largest part the guidance is of a practical nature. The Internet is a vast field and, whilst not every aspect can be covered here, in their entirety the guidelines may still appear onerous to some organisations. Not all of what is contained here will apply in every case. The guidance can easily be prioritised into what is law, what is specifically recommended by the IoF and what is understood to be best practice. Charities must balance the information offered here with their organisation's overall context and priorities and form their own judgements. Nevertheless, we would caution IoF members and affiliates to pay attention to the fact that managing your charity's Internet presence and fundraising is also about managing your charity's reputation and risk. Charities have been known to mischaracterize their relationship with a dotcom as philanthropic or to fall into unrealistic contracts but, as with any contract for service, charities should consider all their online agreements carefully and enlist the advice and expertise of relevant people where they have any doubts or concerns. There can simply be no replacement for due diligence in both the short and the long run for any charity embracing the web. Finally, these guidelines focus explicitly on fundraising using the web and e-mail and do not specifically address other new media issues and channels such as digital TV, mobile telephones and handheld devices. The advice here is intended to be general enough to be useful when considering other media. We have made every effort to avoid built-in obsolescence wherever possible. FUNDRAISING ON THE INTERNET We would encourage anyone who has a query, an issue or an addition to these guidelines to contact the IoF. It is our intention to ensure this document is updated at appropriate intervals, to keep pace with the inevitable changes in online fundraising practice. The capture and handling of personal data online can be a sensitive area, particularly when it comes to the methods used to capture information on visitors. Transparency is usually the best policy. The Data Protection Act 1998 specifically covers the handling of personal data using the Internet. Do not use unencrypted pages for taking credit card payments or donations. Do not use unencrypted e- mail to send or receive credit card payments or donations and actively discourage people from e- mailing their credit/debit card numbers to your charity. State clearly on your Web site, e-mail list or other communication how you will use individuals' personal data e.g. to mail or e-mail supporters with information related to your charity or other organisations' sites, products or services to contact supporters in the event of a necessary communication exchange requested by you or initiated by your charity, such as to confirm or check supporters' donation details to use in aggregate form, that is not personally identifiable, for analysis to help your charity improve its services and products. Ensure that any consent obtained complies with the Data Protection Act. Explain clearly how individuals may edit or delete their details at any time, or request such changes. Personal data should either be held offline and not on the live Web server or be held securely behind a firewall or in a non Web-accessible database to prevent unauthorised access. IOF recommends that you be as transparent as possible, for example in declaring how you intend to use personal information collected by your charity's Web site. Cover how your visitors' movements/activities are tracked (if at all) and whether income is generated simply by clicking through links to commercial participators. Fundraisers should at no time use or encourage unsolicited commercial e-mail (spam), where individuals have not given their consent for their details to be released or used. Fundraisers should understand that currently even the use of legitimate donor resentment and damage public confidence in the sector. In using the Internet to fundraise and conduct other activities charities will give Internet access to paid staff and volunteers. In doing so charities should act to protect both the organisation and individuals from any use or misuse of this access. Charities should seek legal advice on establishing such an Acceptable Use Policy. Such a policy could include the following issues:- Whether personal use of the Internet is acceptable, and if so at what times. Instruction in responsibilities with regard to adhering to copyright and other intellectual property legislation. Whether access to certain Internet resources e.g. pornographic Web sites are not permitted from a charity PC/Mac or other access device. Staff should be expected to monitor and respond to e-mail messages within a set period. Compliance with requests to remove e-mail addresses and other personal data from your charity's database. The transmission of e-mail that may be deemed harassing, libellous, defamatory, obscene, threatening, abusive or hateful to recipients. Avoidance of propagating chain e-mail letters, virus warnings, and other inappropriate attachments. The more advanced the site, the more chance that all sorts of different copyright works have been used e.g. photographs, music, film, sound, graphic design and animation. Check you have the necessary global permission to use any copyright works not created by employees of the charity. If your Web site has been designed by an agency, get them to warrant that the site does not infringe any third party rights and that you have the necessary licences to use all the software involved in running the site. Some specialist software companies will give permission free of charge to charities. Check as well that all assets and integral components e.g. scripts, used to create the sites are assigned to you on delivery; this should be clearly stated in the contract. For example, components could include copy, code, programs, images and sound files. However, this may not be always possible. Some companies share code across clients, and therefore cannot assign the intellectual property rights to a single client. In these instances, you should insist that your charity is given a lifetime licence to use the code and develop it 'for non- commercial gain'. FUNDRAISING USING YOUR CHARITY'S INTERNET PRESENCE The capture and handling of personal data online can be Online handling of personal data We would encourage anyone who ha issue or an addition to these guidelin Acceptable Use Policy
  14. 14. It is also handy to ask for a detailed style sheet of the site's design so that you know which fonts and colours have been used. You could should not infringe someone else's intellectual property in other ways e.g. words used as metatags can infringe registered trade marks (so ensure that you have permission to use them) linking to other sites without permission could give rise to copyright infringement claims. It is good practice to seek such permission. You might also choose to ensure that external sites linked to on your charity's site should open in a new, separate browser window, so that you do not alter the external site's page layout in any way. If your Web site includes a chatroom, or noticeboard, guestbook, or archived copies of e-mail discussion lists, then you could be held liable if you allow libellous statements to be published on the site, however temporarily. IOF recommends that you speak to your legal advisor and your charity's insurance company to establish what kind of AUP best suits your charity. This will help you to identify areas where you need to protect yourself or your staff and limit any liability you may have. In most cases you can assume your Internet activities are excluded from your insurance cover unless you have asked explicitly for them to be assessed. Minimum legal statements for a Web site IOF recommends that all applicable items from numbers 1 to 6 should be included on your web site and that a copyright symbol should appear on every relevant page. • Company registration number • Privacy policy • Security statement (on personal data handling) • Copyright statement. • Terms and conditions of use, and disclaimers e.g. regarding accuracy or currency of data, and external links to third-party Web sites. Charities should also consider displaying prominently and consistently their logo or trademark, together with the logos of any relevant membership organisations or kitemarks to which they belong or subscribe. Copying from Web sites happens all the time and is difficult to prevent. However, if you use the © symbol on all your pages, it shows that the charity is the copyright owner of material on the site and acts as a warning against copying. On the other hand, there are some pages you might want actively to encourage visitors to copy e.g. sponsorship or donation forms, so make it clear which pages can be printed off. If your organisation is a registered charity with gross income in the last financial year of more than £10,000, then its status as a registered charity must be stated in English on all documents soliciting money (Charities Act and use search engine for relevant wepage(s)). It is sensible to assume that documents soliciting money include web-sites and emails soliciting money. Anyone who designs a site and fails to include this is guilty of an offence and liable to a fine of up to £1,000. The charity number should also be included as a matter of course, as this will give some donors a sense of security that their money is going to a regulated charity. Of course, some charities may wish to have the site owned by their trading subsidiary. Remember that codes of practice such as the British Codes of Advertising and Sales Promotion apply equally to the Internet. Charities that are companies should also show their registered company number, status and registered office address. Authorising payment by credit or debit card securely on the Internet requires expensive, complex hardware and software systems. It is much easier and substantially less expensive to contract a third party to authorise credit and debit cards online for your charity. Before you can accept credit/debit card donations via the Internet you should have:- • A bank business account • An online merchant ID (arranged by the bank) • Optional online BACS authorisation for paperless direct debit • A Web site These are not essential, but will reduce costs and increase the number of suppliers who will deal with you if you have them. Once these elements are in place, you will need to set up a secure payment system, where credit/debit cards are authorised online. Remember that codes of practice such as the British Codes of Advertising and Sales Promotion apply Setting up secure/encrypted online donation systems There are more than a dozen companies that securely authorise credit card payments/donations via the Internet in the UK. Some companies will charge a set up fee (anywhere from between £100 to £2000), others will not. Most companies will charge between 0% and 5% of each donation to maintain the service: 5% is the commercial rate and 2% is the average charity rate. If you receive a free service, you might not be entitled to much support. See Appendix 1 for a checklist on selecting a secure online credit card handling supplier in terms of range of services, security, handling of fraud, administration and reporting. IOF recommends that you read the contract with your Internet credit card payment provider carefully. Check to see where you are required to indemnify or otherwise protect the company against any legal action or injury. Consider your rights and responsibilities, the company's and the customer's. Do not sign anything with which you are not entirely happy. If in doubt, ask the service provider to give you examples of what particular clauses could apply and ask if any cases have arisen already. Current legislation prohibits the sale of charity society lottery tickets via the Internet. This is because the lotteries legislation prohibits sale of society lottery tickets by machine. If you are selling goods via the Internet (for example, you have included your usual catalogue on the charity's Web site), then you must make sure you comply with The Consumer Protection (Contracts Concluded by Means of Distance Communication) Regulations 2000. These came into force on 31st October 2000. If you are advertising fundraising events run by the charity's trading subsidiary (such as challenge events) or if you are advertising merchandise sold through the trading subsidiary, you do not necessarily need a separate site for the trading company's activities (though there may be VAT benefits to doing this). But the relevant pages should make clear they are activities carried out through the trading company. The charity should recover from the trading subsidiary a proportion of the costs involved in setting up and servicing the site. One of the difficulties with the Internet is that while you could (and should) make sure that your Web site complies with all relevant UK law, it currently seems an impossible task to ensure a Web site complies with the laws of every country from which it could be accessed. However, some countries (and in particular some US states) are taking active steps to require Web sites accessible by their nationals to be compliant with their local laws. - make clear that your site is only intended for fundraising in the UK - ensure you can react quickly if a problem arises and you need to change the content of your site. Charities are receiving offers from third-party organisations such as companies and non-profits to provide online fundraising services. These include online shopping malls, cause related marketing programmes, online events management, donation handling services and many other services. However, some countries (a Global issues One of the difficultie you could (and sho Practical There are more than a dozen companies t securely authorise credit card payments/donatio Ways to minimise risk include:-
  15. 15. To assess the benefits of proposals from such third- party organisations it is worth considering the following:- Avoid signing exclusivity agreements as these can limit your charity's options. Is the organisation's contract flexible enough to cover your charity's requirements and concerns? Will the organisation adapt it to meet your needs? Would you as an individual buy in to the proposed service? Can you work with the staff at the organisation? With new start-up companies without a track record, this can be one of the few key elements on which you can judge them. Will the site be accessible to people with disabilities using the Web? Do not deny yourself a large market: for example, 1.7 million people in the UK have serious uncorrectable sight loss. Is the organisation aware of the Web site amendments required to address this issue, and will they undertake to address them? Promote accessibility of all fundraising materials to all Internet users irrespective of disability. Ensure reasonable backward compatibility of material with regard to browser software and type of hardware. This is most easily done by providing a text only version of the site. RNIB publishes guidelines at www.rnib.org.uk/access. Alternatively, sites can be checked using a free service from CAST at www.cast.org/bobby. Conduct due diligence checks to find out if the organisation and its business are sustainable. How is it funded? What commitments does it owe to its financial backers and shareholders? Is its business plan realistic? Seek references from the organisation's bank and from other participating charities and business partners where possible. What does the organisation ask of participating charities in terms of marketing? Is the marketing planned by the organisation realistic and sustainable? Avoid organisations that expect charities to conduct all the marketing activity on their behalf. Can the organisation provide you with statistical reports on the number and quality of visitors generated by its marketing? How will you allow your charity's name and brand to be used by the organisation in its efforts at audience acquisition? Is there a limit on the number of charities or the number per market sector? On some sites this will increase income for participating charities, on others it will limit it. Does the organisation's site take other forms of online payment in addition to credit cards e.g. direct debit payments from bank accounts? This could expand the number of supporters likely to make an online transaction at the site. Have they taken into account tax efficiency issues and are they able to offer online tax reclamation of any donations? What is unique about the organisation's offer? Why should your charity work with them and not similar online fundraising companies? With regard to trading Web sites, does the organisation offer a customer charter covering issues such as their delivery commitments and their returns and/or refund policy? Is this acceptable? What is the revenue split in shared revenue schemes between the organisation and your charity? How long will it take the money to reach your bank account? Does your charity incur any costs e.g. for marketing, bank fees, receipts of acknowledgements to donors? Does your charity need to consider acquiring insurance or indemnities with regard to liability? Consider preparing a response to offers and enquiries from Internet fundraising companies. Set out your fundraising plans and minimum requirements from organisations you are prepared to work with. For example, do you have ethical trading criteria? What documents do you expect to see from an organisation? This checklist will help you assess approaches made. A response to an approach from an online fundraising organisation could be: Compare the proposal with your charity's checklist e.g. exclusivity, financial data, ethical concerns, your fundraising priorities. Educate them and request that they submit a proposal specifically for you. Evaluate the proposal and decide on the options available. If you decide to continue, perform due diligence and sign a contract that reflects your charity's requirements. IoF recommends that you take care not to confuse offers and arrangements with dotcoms or commercial services providers as philanthropic initiatives. Avoid services where the company cannot offer you some evidence of its sustainability and audience potential. These things can be more time-consuming and wasteful than they appear at first! Conduct due diligence checks to find out if the organisation and its business are sustainable. How FUNDRAISING USING A THIRD-PARTY'S INTERNET PRESENCE To assess the benefits of proposals from such third- Trading - selling goods or services via the Internet Is there a limit on the number per market sect Contracts Contracts can be time-consuming and difficult to understand. The Internet arena is no exception. All the more reason to exercise due diligence and consult with others to ensure that you are comfortable with what you are signing up to and that you are being treated fairly. IoF recommends that you show any agreement to your charity's compliance officer, financial director, legal firm or insurance company before signing. Consider drawing up your own contract or seek amendments to the standard contract offered by the organisation. Avoid signing Non Disclosure Agreements. Consider offering written confirmation that all conversations, whilst active, are commercial and in confidence and will not be shared. Contracts with online fundraising organisations may need to comply with the Charities Act 1992 and its definitions of commercial participator or professional fundraiser. In these cases, the obligations to make statements and have agreements covering minimum terms will apply. Be clear what your charity's liability could be should anything go wrong. A formal agreement should specify the degree of liability which the Internet-based service provider assumes to the donor, the charity and third parties for information, transaction handling and losses related to the Internet-based service provider's administration of a donation. Consider financial losses and brand reputation. Include a termination clause in the Service Level Agreement, such that the contract can be terminated if customers are not receiving a sufficiently high quality of service. Immediate termination should come into place if the partner brings the charity's name into disrepute, and income from existing customers should still be protected even though the active agreement fails. Contracts should specify explicitly data ownership, not only of standard personal data but of related data e.g. tracking of individuals' preferences and movements throughout a site via cookies and other methods. Contracts regarding licensing or syndicating content should include delineating responsibility for a charity's content on an external/third-party site. In certain cases, service level agreements should be established. These should make clear issues such as:- - Will you have a dedicated account manager? - If yes, how many other accounts does he/she manage? - Can you speak directly to the technical support team? - What levels of service are guaranteed? - How are you compensated if they are not met? - How important is your organisation to the supplier? If your business accounts for less than 0.1% of the supplier's turnover, you are unlikely to receive a premium service so you might do better with a smaller supplier. - Computer Misuse Act 1990 - Data Protection Act 1998 - Copyright Designs and Patents Act 1988 - Consumer Protection (Contracts Concluded by - Means of Distance Communication) Regulations 2000 - Broadcasting Act 1990 - Contempt of Court Act 1981 - Universal Copyright Convention, Geneva 1952 - Berne Convention for the Protection of Literary and Artistic Works, Berne 1886 www.computeruser.com/resources/dictionary/ - High-Tech Dictionary from ComputerUser www.cafonline.org - Charities Aid Foundation (tel. 01732 520 000) www.charitycommission.gov.uk - Charity Commission for England and Wales (tel. 0870 333 0123) www.dataprotection.gov.uk - Data Protection guidance tel. (01625 545745) www.fundraising.co.uk - UK Fundraising (tel. 020 8640 5233) www.horwathcw.com - Horwath Consulting (tel. 020 7583 1577) www.rnib.org.uk/access - RNIB's advice on accessibility in electronic publishing (tel. 0845 766 9999) www.scvo.org.uk - Scottish Council for Voluntary Organisations (tel. 0131 313 2488) www.the-dma.org/library/privacy/ - help in constructing an online policy document. www.fundraising.co.uk/other_fr/scams.html - possible fundraising frauds/scams http://www.gowenandco.org.uk/ - Host of sources contacts for nightshelters homeless. - Computer Misuse Act 1990 Some relevant legislation www.computeruser.com/resour - High-Tech Dictionary from Useful resources
  16. 16. The level of service, security and customer care offered by online credit/debit card processors varies dramatically. When choosing an online credit card processor, it would be advisable to ask the following questions:- 1. Do they process both credit and debit cards, including Switch cards? It is advisable to go with a supplier that processes both. 2. Can they process donations of any amount? Or is there a minimum amount? It's advisable to go with a company that offers a zero floor limit. Does the usage charge increase for small payments? 3. Do they process in multiple currencies? If you choose to process only pounds (you are charged for each additional currency), this does not mean that people using foreign credit cards won't be able to donate, it just means that all donations will be made in pound amounts and the donor will have to do the maths. Do they charge extra for processing multiple currencies? 4. Can they process tax efficient donations e.g. Gift Aid donations? Very few online credit card processing systems are designed with charities in mind - it is advisable to ensure that the company you chose can meet your special requirements. 5. Do they offer paperless direct debit? Very few online credit card processors currently do. This may also have a very high set-up and running cost. 6. Can they process transactions where donors have come straight into the donation page from an affiliated web site (this can cause security issues, so needs to be carefully handled). 1. Do they process credit card payments for gambling or pornography web sites? The majority of online fraud occurs in these areas and charities may choose to avoid online credit card processors that are involved in these industries. 2 When credit card payments are processed, what kind of security is in operation? Is online live authorisation of cards (involving no storage of details) sent over a Secure Sockets Layer-encrypted (secure) link? Are all card details inputted on their site sent through both offline (expiry date and hot/stolen card server) and on-line (hot/stolen card server, sufficient funds, authorisation) to prevent use of stolen or lost cards on their site? Can a maximum number of failed attempts to make a donation with one credit card be set? Can a maximum number of successful donations made with one credit card be set? Can a maximum number of failed attempts to make a donation from one IP address, which details the location of a specific computer, be set? Is the donor's e-mail address validated before the credit card is authorised? 1. Credit card fraud is a major problem on the Internet. Fraudsters typically obtain credit from lists of stolen cards published on the Internet, or by using illicit programmes to produce lists of algorithmically allowable card numbers. Fraudsters use charity sites to test stolen credit card numbers, because they don't have to go through the lengthy process of purchasing a product. Once they've used you to authorise a card, they'll abuse it on other sites. 2. It is currently against the Data Protection Act in the UK and Germany to capture and cross-reference someone's postal address with his or her credit card number on the Internet. As a result the billing address of credit cards used online are not verified by the online credit card processing company. 2 When credit card payments are processed, Choosing a secure online credit card processorThe level of service, security a Range of servicesRange of services APPENDIX 1 1. Do they proc gambling or Security . It is currently aga in the UK and Fraud 3. Because this law has made online fraud in the UK and Germany easy, the credit card companies, banks and UK government are re-evaluating the law. In the mean time, if you plan to ship goods to someone who has purchased them via your Web site, you should always verify that the address provided is the billing address associated with the credit card. 4. When should you be suspicious that a donation could be fraudulent? The same credit card number is being used from different countries. The same e-mail address is being used in conjunction with different credit card numbers. The same postal address is being used in conjunction with different credit card numbers. Many donations are made in rapid succession from the same IP address (an IP address details the location of a specific computer). The donation is very small (£1 donations should be carefully examined). A free web-based e-mail address is used, such as Yahoo, Google, or Hotmail. Many are legitimate, but when combined with any of the above the donation should be very carefully examined. The e-mail address does not match the IP address of the machine the donation was made from. 5. If credit card fraud occurs, what can your online credit card processing company do to stop it? Can they:- Block the fraudster's IP address? Remember that the computer could be located in an Internet cafe, or large organisation such as AOL or Orange, where many computers can appear to have the same IP address. Block the fraudster's e- mail address? Most fraudsters use free, Web based e-mail such as Hotmail -- some online credit card processors will send you a warning when a donation has been made by somebody using this kind of e-mail address. Implement an intelligent software system that develops a profile of typical donor behavioural patterns and warns you if a donor's behaviour varies from this norm? If fraudsters continued to use stolen credit card numbers to purchase products or make donations to your organisation, can the online credit card processor implement what is known as a deferred payment system? Deferred payment systems ring fence funds that have been donated on the individual's credit card -- but do not actually debit the card for five days. During this time the charity can decide whether it thinks the donation is fraudulent or not. If the charity thinks the donation is fraudulent, it can un- ring fence the funds. If it thinks it is genuine, it can debit the card. However, fundraisers should be aware that this procedure could add significantly to the administrative burden. Although online credit card processing companies are not liable for credit card fraud, it would be advisable to ensure that your contract with them states that they will do everything in their power to limit fraud and to co-operate with your bank and international police to track down fraudsters, once they have been identified. 5. If credit card fraud occurs, what should you do to stop it? Report the stolen card numbers to your bank. Reimburse the cards that have been fraudulently used. Ask your online credit card processing company to block the fraudsters' e-mail and IP addresses. Implement a deferred payment system if the fraud continues What kind of online administrative systems are provided? Can you edit the layout and content of your secure payment pages via the Internet? Can you use this system to launch one or more new appeals in a matter of minutes? What kind of online are provided? Administration
  17. 17. How many appeals can you run simultaneously? Can they be different e.g. one-off donations, prompted levels of giving, direct debit/regular gifts? If you are a membership organisation, how many membership ID numbers can they provide you with? Can you view reports about the number, quantity, and origin (donor details) of donations online at your convenience? Can you reimburse credit cards that have been fraudulently debited via the online system? Can you reimburse credit / debit cards for other reasons, not only due to fraudulent use? Can you utilise the deferred payment system online to un-ring-fence or claim donations? What kind of security at your charity and at the payment service provider is used to ensure that only authorised personnel have access to the above systems? Passwords? Certificates (digital)? Certain IP addresses only? - What kind of confirmation does a donor receive after having made a donation? - An e-mail sent instantly by the credit card processing system? - Can this e-mail be customised or changed? - Can your charity do this over the Web? - Is there a charge for this? - How long does the change take to effect? - Can different e-mails be sent to different people? How do they report back to you about donations:- - Is an e-mail sent to you every time a donation is made? - Is a daily report e-mailed to you about all the donations that have been made that day? - Is a monthly report e-mailed to you about all the donations have been made that month? - What information is provided about donors? - IP address? Resolved IP address? - How are the donation reports formatted? It is advisable to ensure that the online credit card processing company can supply you with reports in a format that is compatible with your internal donor database so that every record doesn't have to be keyed in by hand. A method of encoding sensitive data, such as donor records and credit card numbers, so that it might be stored or transmitted safely. A private or restricted access computer network usually operated by an organisation. Unlike an intranet, an extranet is made accessible to other relevant organisations or individuals such as suppliers as well as to the organisation's employees. A standard method of naming and identifying a particular computer connected to the Internet using a unique series of numbers. The shorthand IP is more common. A private or restric usually operated b Extranet: How do they report b Is an e ma Reports A standard method of nam particular computer connecte Internet Protocol: A method of encoding records and credit card Encryption:Encryption: APPENDIX 2 How many appeals c Glossary A private restricted access computer network usually operated by an organisation. Information is stored and retrieved in the same method as the Internet but access is restricted usually to company employees. See Internet Protocol. Hidden information within a Web page that describes the content and other qualities of that Web page. The information does not appear when the Web page is viewed, but is used by search engines to interpret further the text content of Web pages. Not connected to the Internet or other computer network. Connected to the Internet or other computer network. A server that features encryption facilities. Documents stored and information entered on a secure server can be encrypted and protected from unwanted access. A standard and widely used method of data encryption. Computer that is connected to the Internet and on which documents are stored. It serves or publishes these documents when requested by other computer users. A standard method of defining how text and graphics should appear on one or a series of Web pages, including font size, colour and alignment. See World Wide Web A method of storing and retrieving information, including text, graphics, video and sound. Relevant documents on multiple computers are linked using hypertext, a global standard method of connecting. © GPO • 2001 Hidden information describes the content Meta tags: A private restricted operated by an or Intranet: See Internet Meta tags: IP: Not connected to network. Offline: Connected to th network. Online: A server that feature Documents stored and i Secure server: A standard and widely used encryption. Secure sockets layer: Computer that is which documents Server: A standard method of d should appear on one Style sheet: e World Wide Web Web: A method of storing and including text, graphics, vide World Wide Web:
  18. 18. FUNDRAISING -FINANCIAL MATTERS (1) Find out what they want: (a) Application/Budget (b) Regular reports and returns (c) Annual Project accounts (d) Parent Body accounts (e) Does the funder understand the relationship between the individual Project and Parent Body. It is essential that the application is based on fact land reality and not on last year's” application plus a built-in element for contingencies. This is not only to ensure that the figures and costings are reasonable and based on up-to- date information, but also to ensure a consistency in the various figures supplied to the funder. Any variances between the application and the accounts supplied ma, at best result in a query, and at worst result in a withholding of funds. (1) Is the expenditure in the correct cost centre? (2) Is the income in the correct cost centre? (1) How much detail does the funder require? (2) Are all our expenditure headings acceptable? For example, are your on-costs, (e.g. audit fee), charges to be included or re-categorised. (3) Are annual accounts sufficient or do we need to provide quarterly accounts? (4) Is the funder's financial year different to Project/Parent Body and do we have to adhere to this rather then our own It is essential that the application is b 2. APPLICATIONS/BUDGETS (1) Find out what they want: 1. REPORTING TO FUNDERS (1) How much detail does the funder require? 3. PROJECT ACCOUNTS/REPORTS (5) What is the funder's timescale for reporting? (6) Are separate salary details required, if applicable. (7) Does the funder require the individual Project accounts to be separately audited or will they be satisfied with an extract from the audited accounts. A separate audit certificate for a project can be arranged during our normal audit in June, but at an additional cost to the Project. However, if the auditors have to make a special visit this adds to the cost. Therefore try to persuade funders to accept an 'extract' in preference to a separate audit. Some funders may consider the level of a project's reserves, (or Parent Body reserves as a whole), are too high and that we have no need of further funds. You may need to explain that most funding is project specific and therefore only available for use on the project for which it was specifically given. Accounts generally show three sorts of reserves: (a) Restricted Funds (b) Designated Funds (c) General Funds Only General Funds are freely available, but it must be noted that an organisation the size of some Parent’s Body’s, (albeit perhaps deemed a ‘small charity'), must have a level of reserves to ensure its survival. As a well run and prudently managed organisation a Project/parent Body should be aiming at reserves sufficient to cover three months operating expenses at least. A further point is that reserves are not necessarily matched by cash in the bank; they are tied up in other assets such as property, debtors and office equipment. These are dealt with in the note on VAT, Tax and Gift Aid matters. Wherever possible prepare a written contract which should include the following: (a) The cost or fee subject to VAT where applicable. (b) Payment terms (and interest?). (c) Financial reporting requirements. These are dealt with in the note on 4. VAT AND TAX ISSUES Wherever possible prepar 5. CONTRACTS
  19. 19. Have you considered the cash flow implications of the funding? When will you receive the cash relative to when you have to incur the expenditure? If all requirements and deadlines are agreed in advance it should be relatively easy to keep everyone happy -Funder, Project and even the Treasurer/Finance Director. These notes are intended as an aide-memoir for some of the various tax and VAT problems you may encounter. This list is not comprehensive and there may be further points which need to be added. Nor is it intended to give you the answers which would take a lot of paper; it is intended to alert you to potential problems so that you can then seek further advice from a qualified person, e.g. Accountant where appropriate. This is given as a guide only and no responsibility will be taken by the publisher for any inaccuracies and consequences arising out of the information below. All matters relating to VAT should be discussed and verified with the local H M Customs Excise VAT Office before acting, unless otherwise professionally advised. Similarly, matters relating to other Taxation should be referred to the HM Revenue Customs – (HMRC) • Charities office at Bootle, unless again advised otherwise by a professionally qualified person or business. Is it a donation, a contract or sponsorship? Straight gift with no strings (i.e. the Project/Parent Body is providing NOTHING in return) no tax or VAT implications. Could it be made more effective? (a) Consider Gift Aid or Deposited Covenant for 'one-off’ gifts (b) Deed of Covenant for regular gifts Is the Project/Parent Body providing a service or something in return for the funding? If so, it will undoubtedly be subject to VAT. This need not always be a problem if the funder/sponsor is made aware at the start. These notes are intended as an aide-memoir for some of the various tax and VAT problems VAT TAX MATTERS Have you considered th 6. CASH FLOW If all requirements and deadlin 7. AVOID SURPRISES Is it a donation, a contract 1. FUNDRAISING Straight gift with no string (i) Donation Is the Project/Parent Body (ii) Contracts E.g: £1,000 + VAT means the funder will have to pay £1,175 (£175 of which they may be able to reclaim) but £1,000 VAT inclusive means you only end up with about £851. BUT there are a few exceptions e.g. the provision of care. Always prepare a written contract which should include the following: (a) The cost or fee should always be subject to VAT where applicable. (b) Payment terms (and interest?) (c) Financial Reporting requirements. Is the Project/Parent Body providing the funder with publicity? If so this will probably constitute sponsorship. The inclusion of a funder's logo on printed matter etc will always constitute sponsorship. Sponsorship is VATable. As this is in effect a contract there should be a written contract as in (ii) above. Donations in kind, (e.g. secondees or studio facilities), could fall into any of the above so make sure that you AND the funder/sponsor are clear which it is. Just because no cash changes hands doesn't mean there are no VAT implications. The provision, otherwise than for profit, if: (a) Education or research of a kind provided by a school or university; or (b) training or re-training for any trade, profession or employment is exempt from VAT. This is not necessarily to our advantage - [see 6 below]. Where, for example NVQ training is provided to individuals they can be charged the 'net of tax' price. e.g. if the cost of a course was £100, the Project/Parent Body would only charge the person £75 and we would reclaim the other £25 from the HM Revenue Customs – (HMRC) • Charities. VAT is chargeable on all sales of goods (e.g. tapes, vans, computers) with a very few exceptions (e.g. books, cars). Is the Project/Parent Body tit t hi Th (iii) Sponsorship Donations in kind, (e.g. secondees 2. DONATIONS IN KIND The provision, otherwise than for profit, if: 3. TRAINING COURSES AND CONFERENCES Where for example NVQ training is provided to indiv 4. TAX RELIEF ON VOCATIONAL TRAINING VAT is chargeable on all s 5. SALE OF GOODS
  20. 20. Do not be afraid to charge VAT -provided it does not jeopardise your funding - it increases the amount of VAT that can be reclaim, if registered for VAT. It should not be a problem for the funders if they are able to reclaim the VAT we charge, and most of them can. Generally, the nature of the goods or services supplied determines whether or not a transaction is VATable and not the status of the supplier or 'customer'. Does what you are proposing to do fall within ~'s charitable objectives? (Is it primary purpose?) Trading profits could be taxable, (and the Charity Commission might object). The following uses of energy all count as domestic and are VAT rated at 5%. VAT at 5% also applies where the energy is resold by landlords to tenants for domestic use. Houses • Flats • Chalets • Caravans • Houseboats and other Dwellings. Homes or institutions providing residential accommodation with personal care for reason of old age, disablement and past or present dependence on drugs or alcohol Hospitals which only provide long term residence and palliative treatment (treatment intended only to relieve and not to cure). 7. Self-catering accommodation. 10.Premises used by charities for non-business purposes. Do not be afraid to charge VAT -provided it does 6. VAT is not necessarily all BAD news. 7. GENERAL VAT RULE FOR INCOME Generally, the nature of the CHARITY TRADING The following uses of energy all count as domestic and are VAT rated at 5%. VAT a 8. NOTES FOR COMPLETING THE VAT CERTIFICATE DOMESTIC USE Homes or institutions providin old age disablement and pas 1. Children's homes. Hospitals which only 2. Hospices. 3. Residential accommodation for students and school pupils. 4. Residential accommodation for members of the armed forces. 5. Monasteries, nunneries and similar establishments. 7. Self-ff catering accommodation. 10.Premises used by charities for non-business purposes. 6. Any other institution which is the sole or main residence of at least 90% of its inhabitants. The following uses count as non-domestic and are liable for VAT at 20%: a) Ordinary hospitals; b) Prisons, secure units and maximum security hospitals; c) Hotels, Inns and similar establishments’ d) Show Homes. The following count as business activities for charities, these are liable for VAT at 20%. a) The sale of donated goods; b) The rental of charity run buildings, i.e. for weddings, christenings or to other charitable organisations etc; c) The provision of membership benefits by clubs, associations or similar bodies’ d) Any, property for which an entrance fee is charged i.e. museum, art gallery, etc. **When completing the certificate, the percentage used for qualifying must be given as a percentage of energy used i.e. 5% or 100% etc. It is not acceptable to put 5% or 20% VAT is charged at 20% on energy used for all other purposes. Should you require further information regarding your VAT liability, please contact your local HMRC ~ Excise Office : http://search2.hmrc.gov.uk/kbroker/hmrc/locator/locator.jsp © GPO • 2002
  21. 21. The Gift Aid scheme is for gifts of money by individuals who pay UK tax. Gift Aid donations are regarded as having basic rate tax deducted by the donor. Charities or CASC’s take your donation - which is money you have already paid tax on - and reclaim the basic rate tax from HM Revenue Customs (HMRC) on its 'gross' equivalent - the amount before basic rate tax was deducted. Basic rate tax is 20 per cent, so this means that if you give £10 using Gift Aid, it’s worth £12.50 to the charity. For donations between 6th April 2008 and 5 April 2011 the charity or CASC – (Community Amateur Sports Clubs) will also get a separate government supplement of three pence on every pound you give. [For more information, queries, or other question, refer to the Gift Aid Web site @ http://www.stewardship.org.uk/Carry Back of Gift Aid donations v2b.pdf or Gift Aid Calculator at http://www.itforcharities.co.uk/gaidcalc/hightax.htm.] © GPO • 2002-13. GIFT AID MATTERS The Gift Aid scheme is How the Gift Aid Scheme Works © HM Revenue Customs – (HMRC) • Charities In order to make a Gift Aid donation you will need to make a Gift Aid declaration. The charity will normally ask you to complete a simple form - one form can cover every gift made to the same charity or CASC for whatever period you choose, and can cover gifts you have already made and/or gifts you may make in the future. A Gift Aid declaration must include: 1.Your full name 2.your home address 3.the name of the charity 4.details of your donation, and it should say that it's a Gift Aid donation You can use Gift Aid for gifts you make jointly if you tell the charity or CASC how much each of you is giving and if you each make a Gift Aid declaration. Making sure you have paid enough tax to use Gift Aid You can use Gift Aid if the amount of Income Tax and/or Capital Gains Tax you have paid for the tax year in which you make your donation is at least equal to the amount of basic rate tax the charity or CASC is reclaiming on your gift. A tax year runs from 6th April one year to 5th April the next. If you make a number of Gift Aid donations, you will need to consider the tax you’ve paid on each donation on an accumulative basis. If you do not pay enough tax you may be required to pay any shortfall in tax to HMRC. You do not necessarily have to be working to be paying tax. Apart from tax on income from a job or self-employment, the tax you have paid could include: 5.tax deducted at source from savings interest 6.tax on State Pension and/or other pensions 7.tax on investment or rental income 8.Capital Gains Tax on gains But only UK tax counts. Revenue Customs – (HMRC) • Charitie GIFT AID In order to make a Gift Aid donation you will n How to make a donation using Gift Aid You can use Gift Aid for gifts you make jointly if you te Gifts made jointly by people living together
  22. 22. To work out if you have paid enough tax to cover your donations, divide the donation value by four. For example, if you give £100 in a particular tax year you will need to have paid £25 tax over that period. (£100/4 = £25). (Note that this calculation is based on the basic rate tax of 20 per cent). If you do not think you have paid enough tax this year, you may be able to carry back your donation to the previous tax year. See the later section 'Carrying back Gift Aid donations to the previous tax year. If you pay higher rate tax, you can claim the difference between the higher rate of tax 40 and/or 50 per cent and the basic rate of tax 20 per cent on the total 'gross' value of your donation to the charity or CASC. For example, if you donate £100, the total value of your donation to the charity is £125 - so you can claim back: • £25 - if you pay tax at 40 per cent (£125 × 20%) • £37.50 - if you pay tax at 50 per cent (£125 × 20%) plus (£125 × 10%) You can make this claim on your Self Assessment tax return, if you were sent one. Carrying back Gift Aid donations to the previous tax year You can ask for Gift Aid donations to be treated as being paid in the previous tax year if you paid enough tax that year to cover both any Gift Aid gifts you made that year and the ones you want to backdate. Your request to carry back the donation must be made before or at the same time as you complete your Self Assessment tax return for the previous year but no later than the filing deadline for the tax return, which is 31st October if you file a paper tax return, or 31st January if you file online. If you do not complete a tax return you can ask your Tax Office to send you a form P810 Tax Review - you must send this by no later than 31st January after the end of the tax year to which you wish to carry back your gift. Mr Owen makes a Gift Aid donation of £1,000 on 1st June 2009. He can either treat the donation as being for this tax year (2009-10) or carry back the relief to last tax year (2008- 09). As he paid enough tax last year to cover both last year’s donations and this one, he chooses to carry the relief back. He has not yet completed a tax return for 2008-09, so he makes his carry back election and claim on that return and files it online before 31st January 2010. Mr Owen makes Example To work out if you have paid enough tax to cover How to check if you have paid enough tax If you pay higher rate tax, you can and/or 50 per cent and the basic ra Claiming back higher rate tax But if Mr Owen had already sent back his tax return for 2008-09, he would only be able to ask for the donation to be treated as Gift Aid for the year 2009-10. You cannot change a tax return in order to carry back a donation. Gift Aid - effect on age-related Personal Allowance, age-related Married Couple's Allowance or tax credit claims If you claim the age-related Personal Allowance or Married Couple's Allowance or tax credits, it is important to let HMRC know about any Gift Aid donations. They will subtract the amount you donate plus the basic rate tax (that is, the ‘grossed’ up donation) from your total income and use the reduced figure to work out the value of your allowances or tax credits. This may have the effect of increasing these allowances or credits if your income was above the relevant 'income limit' that applies. Follow the links below to find out more about these income limits. From 6th April 2000, Gift Aid certificates were replaced by new, simpler and more flexible Gift Aid declarations. Before a charity can reclaim tax on a donation by an individual, it must have received a Gift Aid declaration from the donor containing certain information and confirming that the donation is to be treated as a Gift Aid donation. Without this declaration, a donation from an individual will not qualify under the scheme. In advance of their donation, at the time of their donation, or at any time after their donation (subject to the normal time limit within which tax can be reclaimed -normally around six years) to cover a single donation or any number of donations in writing (e.g. by post, by fax or electronically through the Internet) or orally (e.g. over the phone or face to face). The amount of information required by law on a Gift Aid declaration has been kept to the minimum consistent with proper administration of the tax relief and the need for the charity to be able to show an audit trail. Charities may well wish to add further information and notes of their own on their declaration forms. It may also be necessary for the charity to add further information to satisfy other legal requirements. If the charity plans to use the information provided by the donor for any use other than reclaiming tax, the Data Protection Act 1998 requires you to explain this if a registered charity in England and Wales incorporates the Gift Aid declaration in appeals literature, the Charities Act 1993 requires a charity to include a statement that it is a registered charity. Under Scottish law, Scottish charities are required to include a statement that they are recognised charities. The HM Revenue Customs – (HMRC) • Charities has no objection to charities incorporating declarations into other documents, such as standing order mandates or Deeds of Covenant. These documents may contain more than the minimum requirements laid down in the legislation. From 6th April 2000, Gift Ai Gift Aid declarations: introduction In advance of their donation, at the time of their donation, Donors will be able to give the charity a declaration: If the charity plans For example:

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