Introduction

This Policy has been set out by the Trustee of Cheka Sana Foundation. It is a public guide to how Cheka Sana Foundation makes decisions on accepting or refusing all kinds of donation including cash, donations in kind, legacies, shares, pro bono work, sponsorship and corporate donation and the procedure to follow.

As part of our constitution, we are tasked with raising income for charitable purposes. Thus, the Trustees must act in the best interests of the Charity when deciding to accept or refuse all kinds of donation. 

Each year, we will raise an increasing amount of our income from all kinds of donation to support our work and to fund major charitable projects, including core costs in the UK and Africa.  Thus, this policy is aligned with the Code of Fundraising Practice, which is detailed here – Fundraising Regulator.  As well as New guidance on when to accept or refuse donations (The Institute of Fundraising, 2018). See, The Institute of Fundraising.

The Cheka Sana Foundation wish to uphold the highest standard of fundraising practice and to abide by the Fundraising Regulator’s key principles and behaviours of a fundraising organisation; to be legal, open, honest and respectful. 

The Trustees undertake to comply with relevant law and regulations, including the Proceeds of Crime Act, Data Protection, Tax and Gift Aid legislation, and Charity Commission guidance. All CSF employees abide by the CSF Fraud, Bribery and Corruption policy.  

This Policy makes clear the Trustees’ legal obligations with regard to acceptance and refusal of all kinds of donation. It outlines the procedures that need to be adhered to and ensures that decisions are not taken on an ad-hoc basis, but are in support of Cheka Sana Foundation strategy and objectives.  Also, it sets out the principles and approach we take to considering all kinds of donations accepted.

The Trustee’s Legal Obligations with Respect to the Acceptance or Refusal of All kinds of donation

• The Trustees take overall legal responsibility for decisions relating to whether a donation is accepted or refused.

• The Trustees must be able to demonstrate that they have acted in the best interest of the Charity in each and every case.

• The Trustees have a duty to consider carefully, on the basis of the evidence made available to them, whether Charity’s interest will be better served by accepting or refusing a donation and to act accordingly.

• The judgement must not promote any Trustee or employee’s moral agenda or interest, and the Trustees must not allow individual or collective personal, political or ethical issues, which are not directly related to the interests of the charity, to affect their judgement.

• Trustees must derive no personal benefit (individually or collectively) from any kinds of donation including, cash, pro bono work, sponsorship, corporate donations, donations in kind, loans or other material support offered to the Charity.

Procedures

On a day-to-day basis, the Charity’s Board of Trustees delegates the responsibility to accept or refuse any kinds of donations to the Charity’s Head of Foundation, assisted by the Senior Management Team (SMT).

In the first instance, the Head of Fundraising, Marketing and Communication (HoFMC) is responsible for ensuring any potential corporate or individual donor are supporting the Charity in accordance with this policy.  If any element of the policy is contravened the Head of Fundraising, Marketing and Communication (HoFMC) will make recommendations to the Head of Foundation on the acceptance or refusal of suggested donations. 

The Head of Foundation will ensure that the Board of Trustees is informed on any donation that he/she judges could potentially raise questions to why the Charity rejected it or accepted it. The Head of Foundation, assisted by the SMT will present the case, any evidence and share the key decision points and procedure that was followed in that particular case in order for the Trustees to make a recommendation of acceptance or refusal.

DONATION AND SPONSORSHIP ACCEPTANCE 

Guiding Principles

The Cheka Sana Foundation has a high profile nationally and internationally, and we seek support from a wide range of individuals, corporations, and organisations to assist in achieving our objectives. 

A suggested any potential donations individually must be clearly evaluated in order to establish whether it would be in the best interest of Cheka Sana Foundation to accept or refuse it. Any kind of donation will be evaluated against these factors:

• Any kinds of donation should contribute towards Charity’s overall strategy and plans

• The Charity should be able to successfully deliver the agreed activity and advance its mission under the conditions tied to the donation, such as schedule and channelling of payment(s), required co-funding if any, reporting requirements and other legal aspects of the contract.

• The donor’ objectives or activities must not appear to be incompatible with Charity’s vision, mission and values, particularly if this risks causing significant damage to Charity’s integrity, public image or professional reputation.

• The Charity will not accept any donations from organisations, companies or individuals whose wealth is known to result from illegal activities or where there are indications of corruption and related economic crime.

Cheka Sana Foundation will refuse any kinds of donations in the following circumstances:

• Where the activities of a donor are directly contrary to the objectives or agreed policies of the Charity or the Charity suspects that the gift has been donated to facilitate money laundering or other criminal activity.

• Where it can be clearly shown that the cost to the Charity of accepting all kinds of the donation will be greater than the value of the donation or sponsorship itself, and that acceptance of the donation or sponsorship will directly lead to a net decline in the assets of the Charity.

• Where the offer of support is dependent upon the fulfilment of certain conditions placed upon the Charity and any condition:

• In itself contrary to the objectives of the Charity 

• Is regarded as needing an unreasonable level of support from the Charity especially in relation to the size or impact the donation or sponsorship will have on the Charity’s charitable activities

• Will divert the Charity from pursuing its current objectives, policies or work priorities as a necessary result of the fulfilment of the conditions alone.

The Trustees will take great care and consideration in deciding whether to accept or refuse a donation:

• Where an offer of support is dependent upon the Charity first spending its own money or resources in order to facilitate the conditions of the donation or sponsorship, as this might place Charity’s assets under undue and inappropriate risk. Any donations should preferably be given in full up-front or alternatively in instalments linked to an agreed contract and work plan.

• Where the support, while reflecting Charity’s objectives, is untenable. For example, if the Charity does not have the resources to maintain the running costs associated with the donation.

• Where the support consists of goods, services or property which the Charity cannot lawfully use, convert, exchange or sell in direct support of its charitable objectives.

Policy concerning specific industries

 Tobacco Industry

Cheka Sana Foundation would not accept any kind of corporate donation, sponsorship or support from a tobacco company.  This includes a Charity of the Year partnership, corporate sponsorship and matched giving for any employee fundraising.

However, if an employee of a tobacco company, due to personal circumstances, wishes to support and donate to the charity from personal efforts, this is acceptable. Not accepting their donations on the basis of who they work for would be unacceptable discrimination.

Alcohol Industry

Cheka Sana Foundation would not accept funds from an alcohol company if it involved a consumer promotion (for example a Cause Related Marketing (defined as a type of marketing involving the cooperative efforts of a for-profit business and a non-profit organisation for mutual benefit) campaign including on-pack promotion or where the Charity receives funds raised from the sale of a specific alcoholic product) as this could easily be construed as Cheka Sana Foundation promoting increased consumption.

However, we would be willing for an alcohol-related company to support our project or events through charity of the year, or the donation of products to be used at our event (which we would monitor), or corporate social responsibilities or sponsorship. This policy also applies to companies such as supermarkets, off licenses and pubs where alcohol (as well as other) products are stocked.

Also, if an employee of an alcohol company, due to personal circumstances, wishes to support and donate to the charity from personal efforts, this is acceptable. We would accept matched giving of employee donations from the company. Not accepting their donations based on who they work for would be unacceptable discrimination.

Pharmaceutical industry

We accept financial donations from pharmaceutical companies to fund specific areas of our work, all of which adhere to the Association of the British Pharmaceutical Industry (ABPI) Code of Practice for the Pharmaceutical Industry 2015

Pharmaceutical funding must not:

• Exceed 5% of our total budgeted income of the financial year. This includes donations, gifts in kind, pro bono, cash or sponsorship. It does not include staff fundraising initiatives.

• Cover sponsorship of staff attending parliamentary party conferences

• Give a platform to representatives from pharmaceutical companies as part of one of our campaigns

Any funding must sit within the Charity’s agreed strategy for the given period.

Relevant Legal Framework

As a way to pre-empt possible disputes and/or negative publicity in potentially difficult cases the Charity, as a UK registered charity, has the option of applying to the Charity Commission for an order authorising Cheka Sana Foundation to refuse all kinds of donation. This is contained within powers conferred on to the Charity Commission by Section 26, Charities Act 1993.

Whilst in general it is not sufficient cause to refuse a donation on the grounds of a general objection to the potential donor, Section 62, Charities Act 1992, Part II, does provide some leeway in this respect. However, precise procedures must be followed if injunctions from the courts are to be obtained.

Section 61, Charities Act 1992, Part II, provides for the return of donations of more than GBP 50 made by credit/debit card within a seven day ‘cooling off’ period.

An ex-gratia payment is a payment made to discharge a compelling moral, but not legal, obligation. This type of payment needs to be authorized by the Charity Commission under Section 27, Charities Act 1993. See Commission’s leaflet, Ex-gratia Payments by Charities (CC7).