Legalities?Not a registered charity

shelovestobuystuff

I have just had an e-mail from a lady I do fundraising for saying that because the dog rescue work she does is not a registered charity I cant raise funds for it?Is that correct?Appararantly its advice from her accountant who says "all donations and fundraising has to go directly through him" and she says what I am doing is illegal?
I have 3 labrador rescue people I fundraise for and none of them are registered as charities,they do lots of good work and just operate either by themselves or with the help of a few friends,local vets etc.
I set myself up as a fundraiser and am not a registered charity either.I set up a treasurers account and myself and a couple of friends have set up a fundraising group and distribute anything we get between these 3 people.
So am I doing something illegal?My bank didnt have any problem with letting me set up the account when I told them what it was for anyway and I really think they ought to know the legalities of fundraising as they offer treasurers accounts.I thought anyone could fundraise for anything.Am I wrong or is this womans accountant a bit dodgy perhaps?

fengirl_2

There is nothing to stop you raising funds for anything or anyone as long as you dont describe the beneficiary org as a charity when it is not. You have to make it clear exactly where the money is going and for what purposes. If it is a business you have to say so. However, if the org you are fundingraising for asks you to cease then you must do so.
You cannot set up a charity to fundraise, so what you are doing is fine.

shelovestobuystuff

Okay so as far as I can work out I am classed by scottish and U.K. law as a benevolent fundraiser and thats okay.I have stated the 3 benevolent groups I am raising funds for both in my documents for the treasurers account at the bank and in any fundraising literature,web links or work I do.So I am acting legally.
I have a donations page on my business website so maybe I have to double check that so see I am complying fully with all the infoi I need to give,including stating that I dont keep any of the fundraising money myself.
I need to check exactly what the accountant has told this lady because I really want to raise funds for her.

anamenottaken

shelovestobuystuff wrote: »

I . . . saying that because the dog rescue work she does is not a registered charity I cant raise funds for it?Is that correct?Appararantly its advice from her accountant who says "all donations and fundraising has to go directly through him" and she says what I am doing is illegal?

I really think there must be a misunderstanding here. How would sending all donations and fundraising direct to the accountant put him in any different position legally from the donations and fundraising being channelled through you?

shelovestobuystuff

Is it legal for me to accept donations to be distributed between the 3 groups via my website?The lady has said her account requested I remove the fundraising link as its not legal,not just the mention of her own group but the whole thing.
I have a click to donate link there.I dont use any of the groups logos,I dont pretend to be them,I clearly state I am an independant fundraiser working to raise funds to distribute between these 3 benevolent groups.I state clearly that any and all funds raised are split between the 3 benevolent groups.
Should I be doing anything else with that to make it fully legal?

MrsManda

Do you state or imply anywhere on your website that you are fundraising for a charity?

shelovestobuystuff

No.I say benevolent funds and make sure I say I am an independant fundraiser.My website is set as my homepage on my profile if you want to double check but I think its all okay.
At the side theres the list of stock depts,boys clothes,girls clothes,baby things etc and at the bottom theres a section entitled DONATIONS,thats where I have the lab rescue bit.Its just a snippet of info when you click then you have to click on "read more" for the full description.I am sure I have full info there and nothing is misleading as far as I can see.I would appreciate fresh eyes reading it through please as clearly the ladies accountant has seen something wrong with it.

fengirl_2

Benevolent fuinds is not a legal term - only the term charitable exists in English and Scottish law. You need to state whether the org you are raising funds for is charitable or not.
What you are doing is not unlawful, although if a group you are fundraising for asks you to desist, then you must do so.
I assume you would be prepared to make your accounts available to each of the charities and the public?

shelovestobuystuff

Okay thanks.I will add info to clearly state the groups are not charitable,not registered charities.
I do keep all my bank statements etc and have 2 copies of each.Have no problem making public and sending copies to the groups I am trying to help if they require that.

shelovestobuystuff

Right,so the lady got back to me and now says her wording may have been misleading.I am not acting illegally afterall.Well I wish she had chosen her words more carefully and not used the word causing me to spend hours researching today,double checking I was within the law.
Now she says this,"unfortunately I am at the mercy of my accountant right now who says that all fundraising must come directly through me.Its harsh I know but I feel I must do as he says.
It was a lovely idea, and I should have checked it out with him first - which I didnt so its me whose at fault really.
Im so sorry that I didnt check it out first with him because I know you just want to help rescue."

So after reading that I am still very confused.
She is stating on her website that they rely on fundraising and donations but apparantly she is unable to accept these from me for some reason.She wants me to add a link to my site which diverts to the lab rescue site( but they have no donation facility set up).She also says she will put a link on the lab rescue site to advertise my business,but I dont want that at all,I am not doing this to make money for myself or better my business.
Do you think I should just drop them or should I try to find out what the problem is first?

I dont think she actually knows the ins and outs of what she is doing and has taken bad advice on it.

this is some of the first e-mail,she very clearly mentions the word legal a few times.

"...Been a few changes with rescue - I took professional advice so things will run even smoother - one outcome im afraid arghhhhhh is that the Accountant has spotted your site with donations to lab rescue etc - Im afraid darn it we are not allowed to do that

All donations and fundraising has to be done directly thru him - so hes asked for it to be removed from your site - Ive no choice I have to do the legalities

Its a shame because it was such a lovely idea of yours and you only want to help - but because we are not a regd charity things have to be done differently

I feel really bad about it as I saw no harm in it but I have to abide by what he says we can legally do".

That to me very clearly is saying that my asking for donations via my website is not legal because they are not a registered charity.Maybe she needs a new accountant.

fengirl_2

I am not clear why she is being dictated to by her accountant - there is no legal basis for donations to go through him or indeed direct to the organisation.
Is she a business or an association, who else is involved in managing the organisation? You dont have to be a registered charity to accept donations for your organisation.
If she is not a business, then I think she needs to speak to her local CVS who will explain the legalities.