Gift Acceptance and Donation Policy

As a registered charity, [Charity name] is committed to accepting gifts and donations in a manner that is ethical, transparent, lawful, and consistent with its charitable objectives.
This Gift Acceptance and Donation Policy sets out the principles and procedures governing the acceptance, refusal, management, and reporting of gifts and donations received by the Charity.

The Trustees recognise their responsibility to protect the Charity’s integrity, reputation, independence, and public trust while ensuring that all donations support the delivery of the Charity’s charitable purposes.

Purpose of the Policy

1.1 The purpose of this Policy is to:

Establish clear criteria for accepting or refusing gifts and donations.
Ensure compliance with charity law, HMRC requirements, and regulatory guidance.
Protect the Charity from legal, financial, ethical, or reputational risk.
Promote transparency and accountability in fundraising and donation management.

1.2 This Policy supports trustees in exercising their fiduciary duties and provides clarity to donors, staff, volunteers, and third parties engaged in fundraising activities.

Scope of the Policy

2.1 This Policy applies to:

All trustees, employees, volunteers, and agents acting on behalf of the Charity.
All gifts and donations offered to the Charity, whether solicited or unsolicited.

2.2 The Policy covers:

Cash and monetary donations.
Non-cash gifts and gifts in kind.
Legacies and bequests.
Corporate and major donations.
Online, international, and anonymous donations.

Definition of Gifts and Donations

3.1 For the purposes of this Policy, a gift or donation is defined as:

Any voluntary transfer of money, property, assets, services, or other benefits to the Charity without expectation of material return.

3.2 Gifts may include, but are not limited to:

One-off or regular monetary donations.
Shares, securities, or other financial instruments.
Property, land, or other tangible assets.
Goods or professional services provided free of charge.
Legacy gifts made by will or intestacy.

General Principles of Gift Acceptance

4.1 The Charity will only accept gifts that:

Support or are compatible with the Charity’s objects.
Do not compromise the Charity’s independence or governance.
Are lawful and comply with applicable regulations.
Do not expose the Charity to unacceptable financial or reputational risk.

4.2 The Charity will not accept gifts that:

Require the Charity to act unlawfully or unethically.
Impose conditions inconsistent with the Charity’s purposes.
Could damage public confidence in the Charity.
Create conflicts of interest or undue influence.

Due Diligence and Risk Assessment

5.1 The Charity will undertake proportionate due diligence on:

Large or unusual donations.
Donations from overseas sources.
Donations that may carry legal, ethical, or reputational risk.

5.2 Due diligence may include:

Verification of donor identity where appropriate.
Assessment of the source of funds.
Review of any attached conditions or expectations.
Consideration of anti-money laundering and counter-terrorist financing obligations.

5.3 The level of due diligence will be proportionate to the value, nature, and risk profile of the donation.

Conditional and Restricted Gifts

6.1 The Charity may accept gifts subject to restrictions or conditions only where:

The conditions are lawful and achievable.
The restrictions align with the Charity’s objects.
The Charity is able to administer the gift effectively.

6.2 Restricted donations will be:

Clearly recorded in the Charity’s accounting records.
Used solely for the specified purpose.
Reported transparently in financial statements.

6.3 The Charity reserves the right to decline or renegotiate conditional gifts that impose unreasonable obligations.

Gifts in Kind

7.1 Gifts in kind may be accepted where they:

Are useful and relevant to the Charity’s activities.
Do not create excessive storage, maintenance, or disposal costs.
Do not expose the Charity to health, safety, or legal risks.

7.2 The Charity reserves the right to:

Decline gifts in kind that cannot be used or responsibly managed.
Dispose of accepted gifts in a manner consistent with its charitable purposes.

Legacy Gifts

8.1 The Charity welcomes legacy gifts that support its long-term sustainability.

8.2 Legacy donations will be:

Managed in accordance with trustee duties and legal requirements.
Treated as unrestricted unless expressly restricted by the donor.

8.3 The Charity will not provide legal advice to potential legacy donors and will recommend independent professional advice.

Corporate and Sponsorship Donations

9.1 Corporate donations and sponsorship arrangements will be accepted only where:

They align with the Charity’s values and reputation.
They do not compromise the Charity’s independence.
Any recognition provided is appropriate and transparent.

9.2 The Charity will not enter into arrangements that:

Endorse political activity or commercial products inappropriately.
Create dependency on a single donor without mitigation.

Anonymous and International Donations

10.1 Anonymous donations may be accepted where:

They do not raise concerns regarding legality or source of funds.
They comply with applicable regulatory requirements.

10.2 International donations will be subject to enhanced scrutiny where appropriate to ensure compliance with UK laws and regulations.

Refusal or Return of Gifts

11.1 The Charity reserves the right to refuse or return any gift where:

Acceptance would breach this Policy.
Legal or regulatory concerns arise.
Continued acceptance would damage the Charity’s reputation.

11.2 Decisions to refuse or return gifts will:

Be taken by the Trustees or delegated authority.
Be documented with reasons recorded.
Be handled sensitively and professionally.

Acknowledgement and Stewardship of Donations

12.1 The Charity will:

Acknowledge donations promptly and appropriately.
Provide receipts where required.
Treat donors with respect and confidentiality.

12.2 Personal data relating to donors will be processed in accordance with data protection legislation and the Charity’s Data Protection Policy.

Governance and Responsibility

13.1 The Board of Trustees has ultimate responsibility for this Policy.

13.2 The Trustees may delegate day-to-day implementation to senior management while retaining oversight.

13.3 All fundraising activity must comply with:

This Policy.
Relevant fundraising regulations and codes of practice.

Monitoring and Review

14.1 This Policy will be reviewed:

At least annually, or
Following significant regulatory or operational changes.

14.2 Any amendments must be approved by the Board of Trustees.

Conclusion

By adhering to this Gift Acceptance and Donation Policy, [Charity name] ensures that all gifts and donations are managed responsibly, ethically, and in the best interests of the Charity, while maintaining public trust and compliance with legal and regulatory obligations.

Signed: ………………………………………
Chair of the Board of Trustees

Date: ………………………………………

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Disclaimer:

Naail & Co provides these policy templates solely as guidelines or standard templates to assist charities in developing their own policies in accordance with Charity Commission England & Wales compliance. These templates are not intended to serve as legal or professional advice, and Naail & Co cannot be held responsible or liable for any outcomes arising from their use. It is essential that each registered charity carefully tailors and customizes these policies to reflect its specific needs, structure, and legal obligations. We strongly recommend that charities seek independent legal or professional advice to ensure compliance with all relevant laws and regulations.

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