Timeline to spend funds

sams247

Hello.  I work for a charity and helped to organise a fundraiser for them for a specific cause. It was to redecorate an area used by people using the charity.   The main donation was made in July 2023 and the rest came in January 2024.  There have been so many excuses why the money has not been spent - mainly based on not finding a decorator able to do the work.  So my concern is, and my question is - how long can the charity keep the money and not spend it?  Its very embarrassing for me to keep saying to people no we havent done it yet. 

OutdoorQueen

Each provider will have their own terms which I thought would have been provided when the money was donated.   

Many grants would state the money has to be spent within 12 months or by end of financial year, 31 March.   However, others could be longer but normally this is made clear.  

Have you checked any paperwork that was provided when the donations were given?

I do know of some charities who have had to give money back because it was not spent on the agreed materials / services within the agreed time limit.  

sams247

I have asked for paperwork but none has been provided yet.  In my memory it was a year, but thats passed...... hence my concern.  

Thank you

Savvy_Sue

Unless the money came from a grant which would - most likely - have conditions, there may be no time limit. If the money came from individuals, they could ask for it back, although a canny charity might have wording to indicate whether or not a gift was 'restricted' to a particular purpose, eg the charities where you 'buy' chickens etc may state explicitly that your purchase may be used to fund any of their work.

So, is the money still set aside for this purpose in the accounts? Are there any restricted funds listed?

Is there definitely now enough money to cover what's needed?

And what is your role in the charity? And your relationship to those who might reasonably be expected to organise the work?

It can take a while to organise larger projects, and even getting quotes can be difficult. Best practice would generally need 3, and tradespeople don't always want to quote if they're not fairly sure they'll get the job.

EnPointe

if it is designated funds   without a  time frame to be used by  the charity MUST keep it until it can spend it on the designated project. 

if you believe that the  the charity is actign improperly in delaying the project in the hope of  de-designating the funds that's a different  tray of times of of worms  

sams247

EnPointe said:

if it is designated funds   without a  time frame to be used by  the charity MUST keep it until it can spend it on the designated project. 

if you beleive that the  the caharity is actign improperyl in delaying the project in the hope of  de-designating the funds that;s a different  tray of times of of worms  

Thank you!  Thats very good to know.

sams247

Update - I now know that the deadline is March 31st, having extended it by a year already.  I have been told that the money has to then be returned or reassigned.  And I have been advised that this can only be with the permission of the fundraiser, who is me.  But the charity are saying that they can make that decision as they are the benefactors.  The whole thing is weird as they have never even tried to spend this money on what it was allocated for I have discovered.  What can I do?

Savvy_Sue

A few questions before attempting to answer that: 

How much are we talking about? 

Are you a volunteer, or a member of staff? I think you are a member of staff (you said you 'work for' a charity), is there a colleague with primary responsibility for money? And a manager responsible for their work? 

sams247 said:

But the charity are saying that they can make that decision as they are the benefactors.  

Who is saying that? Managers, or Trustees? 

Are you affiliated to a national organisation? (For example, I know that AgeUK operates independently in each area but there is a national office as well.)

How is this amount shown in your annual accounts since it was raised?

sams247

We are talking £1400
I am staff.  I have a manager and they are aware
The Finance department are saying that, a manager from there
Yes we are affiliated
Amount has been kept separate from national funds in separate account

Savvy_Sue

sams247 said:

Yes we are affiliated
Amount has been kept separate from national funds in separate account

So it sounds as if the national organisation knows nothing about this money - but they might have a view on it not being spent. 

And in your local accounts, is this money shown as 'restricted', 'designated', or not really shown at all?