Sponsorship and individuals

DaisyFlower

Hi, am hoping somebody may have knowledge of this as didnt find anything on google.

If a group decide to fundraise for a charity (their choice and not organised by that charity) can they legally deduct large expenses from that sponsorship money and do they have a legal obligation to inform those who sponsor them?

Savvy_Sue

Actually there's an additional thing you haven't mentioned. If you are using a charity's name to raise money, you should ask the charity's permission.

When you do that, there may be guidelines.

However, the answer is then probably 'it depends'. We have organised skydives in aid of the charity I work for, for which the 'fee' is £200. We tell jumpers that if they raise £400, they can deduct that £200 from their sponsorship money. Whether they all tell their sponsors that this is what they're planning to do, I wouldn't know!

DaisyFlower

Thank you.

After hours of googling I found the answer. Its not for me but somebody asked me the question and I didnt know the answer so hoped somebody would know.

You are correct in that they have to ask the charities permission and they must hand over all the sponsorship money and then claim back any agreed reasonable expenses.

oldtoolie

The Institute of Fundraising, the professional body for fundraisers says this in its' guidelines on charity challenge events:

"It is a key issue of public concern for those events where the participant does not
personally pay the whole cost of the trip, but uses some of the sponsorship money
for this purpose.!!!
• In this case it is particularly important to make sure that the participant
recognises that this MUST be made clear to every donor if you are to avoid
accusations of misrepresentation."
http://www.institute-of-fundraising.org.uk/Codes_and_regulation/Codes/codes-directory

This guidelines is aimed at international challenge events but the principle remains true for UK events.