MEMORANDUM TO THE TRUSTEES Fundraising Policy

Transcription

1 DECISION REPORT CRT 20 MEMORANDUM TO THE TRUSTEES Fundraising Policy 1. Introduction We are very aware that British Waterways did not have policies to cover individual fundraising and related activity because this was not part of its activities. With this in mind, in the run up to the creation of the Trust, we have created a Fundraising Policy Working Group to consider some of these issues. 2. Purpose of this Paper To report on progress with this work and to ask the Trustees to endorse formally the Terms of Reference for the Working Group as well as three initial pieces of work: Ethics Statement and Code of Conduct Fundraising Code of Conduct Acceptance and Refusal of Donations Donor Promise. 3. Terms of Reference: Fundraising Policy Working Group (Appendix A) The Group is constituted to include relevant professional advice from fundraising, finance (including audit), legal and procurement. It also takes account of the reputational and communications issues with representation from marketing. 4. Ethics Statement and Code of Conduct (Appendix B) This is simply an adaptation by the Head of Audit of the existing British Waterways Code of Conduct (itself based on the Nolan principles ) to take account of the existence in the new charity (for instance) of supporters as well as customers, partners etc. 5. Fundraising Code of Conduct Acceptance and Refusal of Donations (Appendix C) This takes a pragmatic approach to the issues involved in the acceptance or refusal of donations. Much of it deals with everyday practicalities (e.g. the refusal of donations that would require the Trust to undertake illegal activity). However, Trustees should note in particular that it is suggested that in regard to refusal of donations for ethical reasons the policy takes a pragmatic approach allowing Trustees to refuse a donation where it is clear that the activities of a donor are directly inimical to the charitable objects of the charity, the agreed policies of the charity, or to the beneficiaries of the charity. This was preferred to exclusions of specific activity (e.g. tobacco industry) because the activities of the Trust are so wide ranging thus making it easier to assess each case on its merits.

2 6. Donor Promise (Appendix D) This allows us an agreed way to describe our golden pound fundraising commitment. We are able to make this because we already have significant unrestricted income. We have discussed this with the Institute of Fundraising who are comfortable with it. 7. Recommendation That the Trustees endorse the: Terms of Reference Ethics Statement and Code of Conduct Fundraising Code of Conduct Acceptance and Refusal of Donations Donor Promise set out in the Appendices to this paper. Simon Salem Marketing & Fundraising Director March 2012

3 APPENDIX A FUNDRAISING POLICY WORKING GROUP TERMS OF REFERENCE Membership The working group comprises the following:- Simon Salem Ruth Ruderham Caroline Killeavy Ed Fox Kate Longhurst Keith Labbett Nigel Habben Jackie Lewis - Marketing Director - Head of Fundraising (Chair) - Head of Community Engagement - Head of Communications - Finance Manager (Marketing and HQ) - Head of Internal Audit - Head of Procurement - Head of Legal The working group is responsible for the following:- Discussing and agreeing organisational policies for fundraising including ethical positions and ways of working. Ensuring that all fundraising policies meet our legal obligations and comply with or exceed best practice within the charitable sector Communicating the importance of fundraising and our policies surrounding fundraising to the business at large, Making and communicating business decisions on issues escalated by the Head of Fundraising Approving changes to policies Keeping the group advised of strategic business changes that may impact fundraising The working group will meet quarterly to agree policy and more frequently if required. The group will not review live issues unless they are elevated by the Head of Fundraising. Other colleagues may be invited to working group meetings if required by the agenda.

4 APPENDIX B ETHICS STATEMENT AND CODE OF CONDUCT The Canal & River Trust will be known for the highest standards of business ethics. We will treat our customers, supporters, employees and suppliers and business partners with honesty and integrity at all times. Ethics Statement The Trust subscribes to moral principles and standards of behaviour which create a harmonious and effective working environment. Continued subscription to these values will ensure the Trust is one of the best organisations and will be ideally positioned to deal with the challenges of the future. We work together so that we can achieve our objectives. Such teamwork requires us to: allow each individual to maximise his or her inherent skills, competencies and knowledge, and create the conditions where all groups within the Trust pull in the same direction. As we go about our tasks we: have mutual respect for each other, cooperation and flexibility in how we work honour confidentiality deliver customer care secure the waterway heritage and environment for the enjoyment of the nation. We will achieve our tasks by: being motivated and performance focused responding quickly and flexibly to new issues reducing waste, and improving productivity. We will strive for continuous improvement by: involving all employees sharing experiences throughout the Trust refining quality processes, and developing employees. We will conduct ourselves with courtesy, efficiency, impartiality and consideration to all with whom we come in contact during the course of our duties other employees, our customers, supporters and our suppliers. Code of Conduct Employees throughout the Trust have a history (in British Waterways) of giving a high quality level of service and a high standard of integrity. This has been a key aspect in its successful development. Each individual is responsible for regulating his or her own conduct in all aspects of their work and seeking advice where apparent conflicts arise.

5 To assist in the maintenance of such standards, the Trust has adopted seven principles (the Nolan principles ) which should be followed by employees in their day to day duties. They affect the way we deal with each other, with customers and with our suppliers. In addition to demonstrating that our actions are in the public interest, adherence to the code of conduct will protect employees from being unnecessarily and unfairly accused of impropriety. 1 Selflessness Employees should take decisions solely in terms of the public interest. They should not do so in order to gain financial or other material benefits for themselves, their family or their friends. Self interest Employees should not participate in, or otherwise influence, in any way the administrative processes leading up to the award of a contract or other matter in which the employee has a direct or indirect pecuniary or non pecuniary interest. Any such pecuniary interest, such as a debt or significant investment, in an external organisation should be declared in writing to the local waterway or departmental manager. Employees should also declare in the same manner any non pecuniary interest which could also be construed as influencing the way in which they carry out their duties. Indirect interests are where the employee: is a partner in, retained or employed by another organisation has a wife, partner, friend or close relation which, or who, proposes to enter into a contract with the Trust. 2 Integrity Employees should not place themselves under any financial or other obligation to outside individuals or organisations that might influence them in the performance of their duties. Such influences include: advice to, or advocacy for, individuals or organisations with a commercial relationship or adversarial position with the Trust outside interests that might conflict with the Trust. 3 Objectivity In carrying out their duties, including procurement of goods and services, recommending awards and benefits, and raising invoices, employees should make choices on merit and in the public interest. Objectivity is the state of mind that requires reference to all considerations relevant to the task in hand but to no other. Objectivity could be adversely affected if: business gifts or hospitality have been received. 4 Accountability Employees are accountable for their decisions and actions to the public and must submit themselves to whatever scrutiny is appropriate. Accountability includes ensuring: authorisation to ensure that proper responsibility is taken for all transactions and activities before they take place and are in accordance with delegation arrangements including the giving of any commitments made to the donors in return for their donation separation of duties, especially between those who place orders and those who receive the services, and those who authorise payments and between those who initiate income and donations and those who bank the remittances.

6 5 Openness Employees should be as open as possible about all the decisions and actions they take. They should give reasons for their decisions and restrict information only when the wider public interest clearly demands. Competition While bearing in mind the advantages of maintaining a continuing relationship with a supplier, any arrangement which might, in the long term, prevent the effective operation of fair competition, should be avoided. No special treatment should be given to current or recent employees or their partners in awarding contracts to them. 6 Honesty Employees have a duty to declare any private interests relating to their public duties and to take steps to resolve any conflicts arising in a way that protects the public interest. Declaration of interest Any personal interest which may impinge or might reasonably be deemed to by others to impinge on an employee s impartiality in any matter relevant to his or her duties should be declared in writing to the individual s line manager. When it is not easy to decide between what is and is not acceptable in terms of gifts or hospitality, the offer should be declined or advice sought from your line manager. Having raised this matter with your line manager you may be asked to agree specific safeguards to minimise the risk of conflict. Such information will remain confidential within the Trust. 7 Leadership Employees should promote and support these principles by leadership and example.

7 APPENDIX C FUNDRAISING CODE OF CONDUCT ACCEPTANCE AND REFUSAL OF DONATIONS Context Ultimate responsibility in respect of the acceptance or refusal of all donations, even when decision making has been delegated to staff, rests with the trustees of Canal & River Trust. The trustees have a duty to carefully consider, on the basis of the evidence available to them, whether the interests of the Canal & River Trust will be better served by accepting or refusing the donation and to act accordingly. In making these judgements, trustees and their authorised decision makers must not allow individual or collective personal, political or commercial interests, or personal views on political or ethical issues, which are not directly related to the interests of the charity, affect their decision. They are, however, permitted to take practical and ethical factors into account as long as they are ones that are likely to affect the specific interests of Canal & River Trust. Purpose The purpose of this Code of Conduct is: To allow the trustees of Canal & River Trust, and the staff who support them in relation to fundraising, to make clear and consistent decisions regarding the acceptance or refusal of donations, that comply with legal regulation To avoid confusion between trustees, fundraisers, volunteers and staff as to who has the authority to take decisions in differing circumstances To help to ensure that decisions are not made on an ad hoc basis but are grounded in the mission and charitable objects of the Canal & River Trust To provide a clear objective standard against which external regulatory bodies can judge the actions of the charity in cases of potential or actual dispute; To provide a clear unambiguous policy statement making decisions intelligible, easier to justify and credible to the public at large; and To protect the reputation of the Canal & River Trust against adverse public reaction from existing or potential supporters Principles The following principles will be used to determine when a donation might be refused: 1. Where Trustees, or their authorised decision-makers, would derive personal benefit (individually or collectively) from donations, loans or other material support offered to the charity and where material benefit is tied to support, the Trustees MUST decline the support, the benefit or both. 2. Where the Trustees, or their authorised decision-makers have reason to believe that the donation consists of money, goods, property or services obtained by unlawful means the Trustees MUST decline the donation. 3. Where the offer of support is dependent on conditions placed on it, the fulfilment of which would require the charity to take any action which is unlawful the Trustees MUST decline the donation. 4. Where it is clear that the activities of a donor are directly inimical to the charitable objects of the charity, the agreed policies of the charity, or to the beneficiaries of the charity, the Trustees CAN refuse the donation.

8 5. Where it can be shown clearly that the cost to the charity of accepting a donation will be greater than the value of the donation itself, the trustees (in promoting the best interests of the charity) CAN refuse the donation. 6. Where the Trustees can demonstrate the tangible fact that they have grounds reasonably to believe that acceptance of the donation will itself directly lead to a net decline in the asset base of the charity, they CAN refuse the donation. 7. Where the offer of support is dependent upon the fulfilment of certain conditions placed upon the charity, the trustees CAN refuse that support. Such cases might exist where: any condition linked to the support is, in itself, contrary to the objectives of the charity; any condition linked to the support is regarded as unreasonable in relation to the nature of the support in terms of its size or impact on the work of the charity; conditions linked to the support will divert the charity from pursuing its current objectives, policies or work priorities as a necessary result of the fulfilment of the conditions alone; 8. Where an offer of support is itself dependent upon the charity first spending its own money or resources in order to facilitate the execution of the original offer of support, great care SHOULD be taken by the trustees who may be placing charitable assets under undue and inappropriate risk. 9. Where a donation is made of a value of less than 5,000, which is restricted to a specific project or programme of work not already identified and prioritised by Canal & River Trust, the trustees CAN refuse the donation on the ground that it will not be in the charity s best interests to accept a donation that requires work to be carried out that would not otherwise have taken place. In such circumstances the donor will be asked to re-purpose their donation towards a prioritised project. 10. Practical considerations may mean that an otherwise acceptable donation is refused. Such cases might exist: Decision-making Process where support is tied to a particular project or activity which, whilst reflecting the charity s objects, is nevertheless impractical, given the current standing of the organisation. Examples of such a case are where support is offered to restore a canal, but Canal & River Trust has no resources with which to maintain the running costs associated with it OR where a heritage boat is donated on the condition that the Trust restores and maintains it, but the Trust has no resources with which to meet this condition. where the support is presented in an unconventional manner and the cost of processing the donation exceeds the value of the donation. An example of such a case is where a charity is offered a wheelbarrow of penny coins. where the support consists of goods, services or property which the charity cannot lawfully use. The following decision-making process clarifies where decisions are made in relation to the acceptance and refusal of donations, and what the process is for ensuring that potentially contentious donations are appropriately investigated. Examples of what may constitute a contentious donation are: A donation that is made by a company defined by our own criteria as high risk A donation that is made with unconventional restrictions, conditions or caveats A donation that is less than 5,000 but which is restricted to a specific project or programme of work not already identified and prioritised by Canal & River Trust Day to day decisions Day to day decisions about the acceptance and refusal of donations will be made by staff within Fundraising or Supporter Care, who solicit donations and handle income. All staff working in these teams will be briefed on this Code of Conduct and expected to make their day to day decisions on the basis of the principles within it. All staff who take day to day decisions will be expected to proactively elevate any donation that they consider, on the basis of the evidence available to them, may be contentious. Any donation over 50,000 must also be elevated.

9 Elevation process: Step 1 The first point of elevation for potentially contentious donations is the Head of Fundraising. The Head of Fundraising (or her delegate) should be alerted of any contentious donations within 24 hours of them being received, and prior to them being accepted. She will make a decision on the refusal or acceptance of this donation, on the basis of the evidence available to her, in light of the principles contained within this Code of Conduct and following consultation with at least one member of the Directorate of the Canal & River Trust. If she is unable to make a decision she will elevate the decision. She must also elevate any donation over 100,000 Elevation process: Step 2 If the Head of Fundraising is unable to make a decision about a donation she can elevate the decision to the cross-organisational working group on Fundraising Policy and Ethics. This group will convene an emergency meeting, at which at least four members must be present, to discuss the donation and to make a decision on the basis of the evidence available to them and in light of the principles contained within this Code of Conduct. If they are unable to make a decision they will elevate the decision. They must also elevate any donation over 1 million. Elevation process: Step 3 If the Fundraising Policy and Ethics group is unable to make a decision they can elevate the decision to a delegated group of Trustees. They can elevate the decision with or without a recommendation. The group of Trustees will discuss the donation and make a decision on the basis of the evidence available to them and in light of the principles contained within this Code of Conduct. In order to pre empt possible disputes and/or negative publicity in complex or potentially difficult cases, trustees may wish to apply to the Charity Commission for an order authorising the charity to refuse a donation. Circumstances where such an order might be of particular benefit are those where: it is not immediately clear what the best interests of the charity are in relation to the proposed donation; large sums of money or property are involved; the trustees have reason to believe that a decision taken by them might be subsequently challenged in the courts; and the trustees wish to use the authority of a Charity Commission order to mitigate against the threat of negative publicity engendered by the refusal of a donation. Returning a donation Where a donor requests the return of all or part of a donation made to the Canal & River Trust, the decision will be immediately elevated to the Head of Fundraising. She may consider returning the donation if: If it was made by credit or debit card within the previous seven days in response to an appeal by a professional fundraiser The terms and conditions of the gift provide for it to be returned in particular circumstances which have demonstrably been met The law specifically provides for the gift to be returned in particular circumstances It is by way of an ex gratia payment to discharge a compelling moral, but not legal, obligation It s refusal or delay is with a view to persuading the donor to make the gift in a more tax effective manner (e.g. by Gift Aid), provided that the charity explains the tax advantages accurately to the donor. In cases where the value of the donation to be returned is greater than 100,000 the Head of Fundraising MUST elevate the decision following the process above.

10 Prevention of unauthorised fundraising Whilst the Canal & River Trust will generally welcome and support those who seek to fundraise on behalf of the charity, the Charities Act 1992 does permit all charities to obtain a court order preventing unauthorised fundraising where an individual is using fundraising methods to which the charity objects, or where the charity believes that the individual is not fit and proper to raise money on their behalf. If Canal & River Trust were to pursue a Court Order of this kind, a delegated group of Trustees would be asked to approve the decision.

11 APPENDIX D DONOR PROMISE We promise that every penny you donate will be spent directly on work to conserve, restore, enhance and educate people about the waterways. We will produce an independently audited report every year that will set out clearly how we have spent your money and what difference it has made to the waterways and to the people and wildlife that use them. Donor Charter We will: - Ensure that every penny you donate is spent directly on work to conserve, restore and improve the waterways that we manage in England and Wales - Be transparent with you about how your donations are spent, producing a report every year that outlines how we used your money and what difference it has made - Acknowledge your gifts and respond to your enquiries promptly - Not pass on your details to any other organisation - Respect your wishes if you ask us not to communicate with you through any specific channel, and ensure that, if you do want to learn about the great work you are helping us to do, there are plenty of ways you can find out more