Approved: 2nd April 2022
Version: 1.0
Content owner: Fundraising

As Sew Ready volunteers, staff, members or trustees you understand how vital our fundraising is to us.

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Donations help us continue to give everyone a great sewing led experience that can help shape lives. Our aim is to make sure our fundraising is legal, open, honest and accountable - and in our best interest.

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Sometimes we may need to refuse a donation – most times we can accept. This policy explains to all Sew Ready volunteers, staff and trustees how Sew Ready approaches accepting and refusing donations.

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What legislation do we follow?

Trustees have the ultimate responsibility for decisions about accepting donations. There is no legal statute to guide trustees on this matter, but there is legislation that trustees and advisers must make sure is met when deciding whether or not to accept donations.

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Relevant legislation includes:

• The Charities Act 1992: in relation to commercial participators and professional fundraisers.

• The Charities Act 2011: in relation to seeking the views of the Charity Commission on whether to accept or refuse a particular donation, or an order to sanction the trustees’ dealings with charity property.

• The Bribery Act 2010: in relation to bribery offences.

• Finance Act 2011: in relation to tainted charity donations.

• Proceeds of Crime Act 2002: in relation to suspected money laundering.

• Terrorism Act 2000: in relation to disclosures of beliefs or suspicions of terrorism offences.

• Trustees must also take decisions relating to the acceptance or refusal of donations in the best interests of the charity.

 

What types of donations can Sew Ready accept?

• Cash of any amount.

• Publicly traded shares at fair market values.

• Land and buildings.

• Personal property.

• Gifts in kind such as - but not limited to - venues, catering and advertising.

• Sew Ready may also be named as the beneficiary of planned gifts:

• Residuary legacies – a gift made of some or all of the remainder of an estate after all other gifts have been handed out and debts paid off.

• Pecuniary legacies – a gift made of a fixed sum of money.

• Specific legacies – a particular named item left as a gift in a will, for example shares, property, jewellery, furniture or a painting.

 

Due diligence

Sew Ready must undertake due diligence on potential partners before donations are accepted. However we don’t need to know the identity (or try to find out the identity) of each small cash donor.

Sew Ready takes a risk-based approach to due diligence. This means we must identify and weigh up risks and benefits to Sew Ready with our due diligence checks.

 

When can Sew Ready refuse donations?

Sew Ready can only refuse a donation - as explained by the Institute of Fundraising - when:

It would be unlawful to accept it (for example the gift comprises the proceeds of crime).

Accepting the donation would be detrimental to the achievement of the purposes of the Sew Ready, as set out in our royal charter. Such detriment or anticipated detriment has to be set against the benefit of having the funds from the donor, which enable Sew Ready to pursue its purposes.

 

When can Sew Ready return donations?

Under charity law, and in common with all registered charities, Sew Ready is only able to refund donations in certain circumstances including:

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If the terms and conditions of the gift provide for it to be returned in particular circumstances; or

Where the law specifically provides for the gift to be returned in particular circumstances; or

by way of an ex-gratia payment.

 

Depending on the circumstances, there may be restrictions on whether a donation can be returned, and the relevant charity regulator may need to allow such returns by issuing a specific order.

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