Review Date 01/01/2017 Director of Finance and Information Director of Strategy and Transformation Expiry Date 27/01/2018 Withdrawn Date

Transcription

1 Policy No: OP04 Version: 5.0 Name of Policy: Charitable Funds Policy Effective From: 05/02/2015 Date Ratified 28/01/2015 Ratified Trust Board Review Date 01/01/2017 Sponsor Director of Finance and Information Director of Strategy and Transformation Expiry Date 27/01/2018 Withdrawn Date This policy supersedes all previous issues.

2 Version Control Version Release Author/Reviewer Ratified by/authorised by 1.0 February Trust Board 2002 Date February 2002 Changes (Please identify page no.) 2.0 February 2006 Trust Board February December 2009 Pam Oliver Director of Finance and Information November /10/2012 Angela Green/ Tracey Preece Charitable Funds Committee September 2012 Minor changes and amends throughout /02/2015 Lucia Hiden/ Angela Green Trust Board 28/01/2015 Re writing of original policy in line with new strategic direction for charity Charitable Funds Policy v5 2

3 Contents Section Page 1 Introduction Policy scope Aim of policy Duties (Roles and responsibilities) Definitions Charitable Funds Policy Opening a charitable fund and merging and deleting existing accounts Restricted, unrestricted and designated funds Principles that apply to the stewardship of funds Income from charitable trading Application of funds (expenditure) Purchasing/ donation of goods VAT Purchasing staff training Spending approval process and limits Authorising officers and the charitable funds accountant The reserve policy and annual spending plans Cash management Fundraising Charitable collections Raffles and lotteries Donations from external companies Fee waivering/donation of personal income Paying donations in Gift Aid Reserves of charitable funds Fund signatories changes to funds Reclassification or closure of funds Investment policy Management and administration services Reporting Insurance Complaints and concerns Legacies Training Equality and diversity Monitoring compliance with the policy Consultation and review Implementation of policy (including raising awareness) Charitable Funds Policy v5 3

4 12 References Associated documentation (policies) Appendices APPENDIX ONE Charitable Funds Committee Terms of Reference APPENDIX TWO Confirmation of Publication of Results from Charitable Research APPENDIX THREE Request for Charitable Funds expenditure form APPENDIX FOUR Donation form APPENDIX FIVE Charitable Funds authorised signatory form APPENDIX SIX Application to merge Charitable Funds APPENDIX SEVEN Charitable Funds Committee reporting structures APPENDIX EIGHT Approval for expenditure at charitable funds committee form APPENDIX NINE Charitable Funds Operational Group Terms of Reference Charitable Funds Policy v5 4

5 Charitable Funds Policy 1 Introduction The Trust runs a charity under the name of Gateshead Health NHS Foundation Trust Charitable Funds with a charity registration number of The objective of the charity is to hold funds for any charitable purpose relating to the NHS wholly or mainly for the services provided by the Trust. The charity was established in 2001 following the merger of Gateshead Hospitals NHS trust charitable fund and Gateshead Healthcare NHS Trust charitable fund. It was given the name Gateshead Health NHS charitable fund until April 2005 when it was amended to reflect the trust s new foundation trust status. The charitable fund is administrated and managed by the Trust as a corporate trustee. This means that the directors of the Trust, acting collectively, exercise the duties of the Trustee. Executive and non executive directors become trustees of the charity upon appointment. Information about the charity and advice on the role of a trustee is provided in recruitment packs for these roles. The responsibility to manage the charity has been delegated to the charitable funds sub committee. The Trust manages the charity by setting up individual funds for wards and departments which are managed locally by a fund manager and signatories under delegated authority from the charity. Each fund is classed as an ear marked fund of the charity. The main sources of income are donations, legacies, investments income and proceeds of fundraising activity. Monetary donation/ contributions are gifts given free from consideration to the Trust in recognition of the treatment/ care provided. Specifically excluded from this are private patient fees, NHS Category 11 income, sponsorships of drugs trials or any contribution which is given in return for a service provided (or to be provided) in return for the contribution. Monies must not be accepted for the personal benefit of any individual staff member. 1.1 Charitable purpose 2 Policy scope Health Service bodies are not themselves charities, only the funds and property they hold on trust for exclusively charitable purposes constitute charities. Section 3 of the Charities Act 2011 states that for a fund to be a charity it must have purposes which are exclusively charitable. Charities administered by health bodies fall into the category of the advancement of health or the saving of lives. QE Gateshead Charitable Funds is not set up for the relief of financial need. A purpose is not charitable unless it is for the public benefit. It must be of actual benefit, and must benefit the public as a whole or a sufficient section of the public. A purpose is not charitable if it is wholly or mainly for the benefit of specific individuals. The purpose of the policy is to: Give general information on charitable funds to all staff within the Trust Give guidance on how to apply to open a fund and the general management arrangements for running a charitable fund Give information on how further information can be obtained for charitable funds. Charitable Funds Policy v5 5

6 3 Aim of policy The aim of the policy is to: Ensure that charitable funds are managed in a consistent manner across the Trust in accordance with charity legislation Ensure that proper financial controls, governance and procedures are adhered to Support in the objectives of the charity to enhance the services and facilities provided by the Trust to patients and staff. 4 Duties roles and responsibilities Trust Board The Trust Board is the corporate trustee (see definition in section six) and takes responsibility for the charity. Charitable Funds Committee This is a sub committee of the Trust, which oversees the Charitable Funds activity within the organisation. It has powers to recommend changes in the way Charitable Funds are invested and spent, and reviews the systems in operation. The Terms of Reference of the Charitable Funds Committee are attached at Appendix 1 of this document. Chief Executive The chief executive is a trustee of the charity and has a duty to ensure that team members who are fund managers know and understand their responsibilities and execute their duties accordingly in line with this policy. Executive Director The executive directors are trustees of the charity and in some cases are signatories to funds or fund managers. The director of finance and information and the director of transformation and compliance are jointly responsible for the charity. The executive directors have a duty to ensure that their teams who are fund managers know and understand their responsibilities and execute their duties accordingly in line with this policy. Heads of Department Heads of department have a duty to ensure that they and their teams who are fund managers know and understand their responsibilities and execute their duties accordingly in line with this policy. Fund managers The fund manager can be any member of staff who accepts delegated responsibility for an earmarked fund in accordance with the Trust s guidance for managing charitable funds. This is available on the charitable funds section of the Trust intranet at The income and property of the fund must be applied in furtherance of the purpose of the charity and for no other purpose. All staff Staff need to be aware of the role of the charity within the hospital and understand where to direct members of the public who wish to make a donation and other fundraisers. Charitable Funds Policy v5 6

7 5 Definitions Charitable Fund: A specific ear marked fund created to benefit patients, staff or both. Earmarked funds are unrestricted in nature but are to be used within a specific ward or department at the discretion of the trustees who ultimately have responsibility for the fund. Fund Manager: A member of staff with delegated responsibility for an individual fund. Charitable purpose: The charitable purpose of the charity is the advancement of health or the saving of life (Charities Act 2011). Corporate Trustee: If an NHS body holds charitable funds as sole corporate trustee the board members of that body are jointly responsible for the management of those charitable funds. Members of both the Trust Board and Charitable Funds Committee are not individual trustees under charity law but act as agents on behalf of the corporate trustee. 6 Charitable Funds policy A guide for managers, which aims to answer some of the everyday questions fund managers may have about running a fund, is available on the charitable funds section of the Trust intranet at Opening a charitable fund and merging and deleting existing accounts Any manager wishing to open a charitable fund should write to the charitable fund manager for approval. The letter should include a brief description of the purpose of the fund and the names of the people who will manage the fund. There should be at least three members of staff who will take responsibility for the fund. These should be a medical representative, a nursing representative and the service line manager or equivalent. Any variation to these representatives must be authorised by the Charitable Funds Operational Group. The form Application for the creation of a new charitable fund (available from the charity office) should be completed. The form will be returned if it has not been fully completed and a new fund will not be created unless a material amount of funding is to be paid in. Care should be taken to ensure the charitable purpose of the proposed new fund is not already covered by an existing fund. The purpose of the fund should be specific enough to ensure that the funds are used in accordance with the original aims but at the same time should not be too restrictive in case it limits future use of the fund. If the fund is to be used for research purposes a special declaration form needs to be signed. A copy is attached at appendix two. This will confirm that the outcome of the research will be published in a recognised journal and publicised to demonstrate accountability to Gateshead residents. When it is agreed that a new fund is appropriate (at the Charitable Funds Operational Group), the finance department must be informed as each charitable fund must be allocated a separate accounting cost centre. The merger of existing funds is encouraged by the Charity Commission where funds have very similar purposes. Where the purposes of a fund have been met and there is no need to continue the fund, it should be closed. The fund manager should continually monitor funds and inform the charitable funds manager if there is a case for the merger or deletion of a fund. Charitable Funds Policy v5 7

8 Funds that have continuously had a balance of less than 500 will be merged with another fund of a similar purpose providing that there is no restriction applied to the fund for purpose. 6.2 Restricted, unrestricted and designated funds Restricted funds are funds which either: Must be used for specific purposes (set out by, for example, donor(s) at the point of donation (including legacies) or by the terms of a public appeal or a grant or Are subject to a restriction on expenditure (also known as permanent endowment or expendable endowment depending on the exact terms of the restriction). Unrestricted funds are those funds which are given to the charity (whether solicited or unsolicited) without any restrictions imposed by the particular donor or grant maker and may be spent at the discretion of the trustees, in furtherance of the objects of the charity in which the funds are held, without any distinction between capital and income. Designated funds for the majority of the Trust s funds where unrestricted funds are set aside for designated purposes in relation to a particular ward, department, speciality or service. Designation of funds is used where donors have expressed a preference without imposing a formal restriction. Designated funds are recorded within the summary of unrestricted funds in the charity s accounts. 6.3 Principles that apply to the stewardship of funds Charitable funds must be applied for the purposes set out (to provide additional support for patients and staff, to buy capital items and support medical research and support staff training in some circumstances).the following principles apply: The income and property of the charity must be applied with fairness and to persons who are properly qualified to benefit from it The Trustee must act reasonably and prudently in all matters relating to the charity and must always bear in mind the interests of the charity Personal views or prejudices must not affect conduct The same degree of care in dealing with the administration of the charity should be exercised as would be exercised managing the Trust Board s affairs Fund managers and signatories are actively encouraged to spend in line with the purpose of the charity as funds will not be permitted to merely accumulate income. Anybody wishing to apply for spending from within charitable funds must have the approval of the fund manager for that spend before a bid is submitted. 6.4 Income from charitable trading Income received whilst carrying out the purposes of the charity is regarded as charitable trading. This includes income from training and lectures connected to the charity and income from coffee shops or similar directly provided by the charity as a service to patients, relatives and staff. Charitable Funds Policy v5 8

9 6.5 Application of funds (expenditure) Before deciding to apply to spend charitable funds, fund managers must consider: Whether alternative sources of funding are appropriate. As a general guide it is not appropriate where a Trust revenue budget is normally used for the expenditure or where the expenditure is in respect of goods and services that are funded through service level agreements Whether the expenditure is for a charitable purpose in line with the criteria stated, most notably that it will be of benefit to patients The wishes of the donor, and any restriction or designation placed on the fund Whether charitable funds may be used where Trust funds have been used to partially fund a project. This can include additions to basic levels of goods, services, equipment where the needs and requirements of patients are only partially met through exchequer funding The number of individuals who will benefit from any expenditure. A purpose is not charitable if it is wholly or mainly for the benefit of specific individuals. Further information is provided in the application to access charitable funds form which is attached as appendix three. All requests for charitable funding must be completed in advance of the purchase of goods or services. Retrospective applications will not be accepted and the funding for those items will need to come from revenue budgets. It is expected that income generated is spent within two years. If it is not spent, funds may be subject to scrutiny by the charity which may decide to merge or close a fund. 6.6 Purchasing/ donation of goods Official orders must be raised for all goods and services purchased from charitable funds except for small items bought out of petty cash. The normal system for procuring goods and services for the Trust should be applied when buying items from charitable funds i.e. raise an e requisition. The only difference is that the requisition should be approved by an authorised signatory of the charitable fund (note this may be different to the normal approved signatures for departmental items) and the value/ estimated value of the goods or service should be added. Once an e requisition has been approved by a fund manager it will be checked by the finance team to ensure that there are enough funds and it has been appropriately authorised. They will then allocate an approval number and forward to the supplies department for processing. It is important that when items are purchased from charitable funds or when families/ friends wish to purchase items for ward usage that the appropriate health and safety standards are applied before completing requisitions. The supplies department will provide a list of approved hospital suppliers that meet health and safety standards and/ or put requisitioners in touch with those personnel who can answer any queries, e.g. estates for electrical goods, ergonomics advisor or the infection control team for furniture and fittings, clinical staff or medical devices team for medical equipment or the IT department for IT equipment. This will help prevent the purchase of goods that cannot be used in both clinical and non clinical areas. All purchases made from charitable funds belong to the Trust. All equipment etc purchased by the charity remains with the Trust should a member of staff leave. Charitable Funds Policy v5 9

10 E requisitions and study leave forms will not be processed until the finance department has received a fully completed request for expenditure form VAT The charity is allowed to claim zero rating of VAT from the purchase of medical, scientific, computer, video, sterilising, laboratory or refrigeration equipment for the use in medical research, training, diagnosis or treatment. These forms are completed and authorised by the supplies department. The charity can also claim contracted out VAT (the same as for purchases from the foundation trust) for items purchased using charitable funds. 6.7 Purchasing staff training Charitable Funds may be used to partially or fully fund educational or training courses for staff where this is in addition to the provision ordinarily afforded by the NHS. The training must show demonstrable patient benefit. Staff must complete the standard study leave form and forward to the finance department for approval. For further guidance, please refer to policy PP29 Education, Training and Development policy and study leave procedures. The charity will contribute to the costs of the annual staff awards event as recognition of the achievements of staff. 6.8 Spending approval process and limits The application to access charitable funds form, attached as appendix three, must be completed and full authorisation obtained for all charitable funds expenditure before any commitment is made. Charitable Funds signatory Up to 24,999 Charitable Funds Committee Over 25,000 The form also includes information on the appeals process should the requestor or the finance team disagree with the decision made by the spending authoriser. Expenditure over 25k must go through the Charitable Funds Operational Group with a completed approval for authorisation of funding for (attached as appendix eight). Please contact the charitable funds manager with any further queries and to arrange the presentation at the charitable funds committee. 6.9 Authorising officers and the charitable funds accountant For each charitable fund within the Trust, day to day responsibility must be rest with a fund manager with two co signatories. These must be staff of a reasonable level of responsibility. The Charity Commission allows delegation but only to the extent that responsibility for exchequer budgets is delegated. The Standing Financial Instructions (SFI s) set out the rules which regulate the financial arrangements within the Trust. The SFI s apply equally to Charitable Funds and, therefore, must be understood and applied by the Authorising Officers. In addition, members of staff should apply normal ordering, receipting and payment for goods and services procedures to charitable fund purchases. Disbursements from Petty Cash may be made for Charitable Charitable Funds Policy v5 10

11 Funds expenditure when adequate supporting documentation is provided ie. receipts. The hospital cashier will verify such requests and contact the Assistant Director of Finance if specific verification is required. Examples of relevant petty cash disbursements would be individual food items for palliative care patients, small items such as newspapers or fish and chips, art sessions and music therapy or purchases for dementia patients The reserve policy and annual spending plans The charity is expected to ensure that charitable funds are spent, on the purpose for which they were donated, within a reasonable timescale, unless funds are being amassed for a large piece of expenditure. Delays in spending funds may result in a breach of trust and therefore account balances are continuously monitored. The Charity Commission can hold the trustees in breach of trust if funds accumulate without good reason. Fund managers are required to forward their spending plans for the next financial year to the charitable funds manager in line with the requested deadline, for collation and presentation to the Charitable Funds Operational Group Cash management In general there should not be a mix between charitable funds and exchequer funds. Separate bank accounts exist for both funds. Where the exchequer account makes payments on behalf of charitable funds a reimbursement must be made by the Director of Finance from charitable funds as soon as practicable. This should be on a monthly basis as a minimum. Ideally fund managers should indicate any known timing of expenditure so that cash forecasts for charitable funds can be carried out by the Director of Finance or his nominated officer to ensure the liquidity of the total charitable funds cash. This will identify any funds that could be safely added to the charitable funds investment portfolio or alternatively identify funds that need to be returned from the portfolio. The forecasts must include all outstanding reimbursements due to Exchequer funds and any grants, donations, fund raising receipts or legacies which have not been received but which are certain. The information highlighted at section 6.8 above will provide the information needed to assist the process of cash and investment management Fundraising Anyone wishing to raise funds or carry out sponsorship must have the approval of the charitable funds manager prior to carrying out this work. The charitable funds manager will officially log the fundraising activity in accordance with the Charity Commission regulations (this applies equally to internal events on wards and departments). The charitable funds manager will then issue the appropriate agreements and sponsorship forms alongside a fundraising pack and offer further support such as social media and poster templates. Larger fundraising projects will be considered by the Charitable Funds Committee. In all instances, risk assessment and reputational standing should be considered before events are undertaken. It is important money handling is secure and processes are implemented to ensure that staff or volunteers are not put at risk of suspicion. Charitable Funds Policy v5 11

12 6.13 Charitable collections There are many different forms of fundraising collections and all have different rules. Some of the most common are: Street collections: require a licence from the local authority Private collections: if a collection is open to the public but being held on private property such as a shopping centre or railway station, permission must be obtained from the landowner or manager Static collection boxes: Boxes must be secure and tamper proof and require the permission of the business owner House to house collections: Licences must be obtained from the local authority. The Metropolitan Police states: No collection shall be in such a manner as to cause, or be likely to cause, danger, obstruction, inconvenience or annoyance to any person. When collecting in person, identity badges that contain details of the licence and the charity should be worn. These will be made available through the charity office Raffles and lotteries Raffles are a form of lottery and are widely used by fundraising organisations of all sizes, whether organised internally or by volunteers. There are strict laws governing raffles and lotteries. Small lotteries (including raffles and tombola s) are only allowed in the following circumstances: The value of the prizes does not exceed a total of 50 No cash prizes are given The sale and issue of tickets is restricted to Trust premises The results must be announced at the place where the tickets were sold. Any lottery/ raffle/ tombola exceeding the above perimeters must be registered with the local authority. Failure to observe these rules means the charity has carried out an illegal action. The Charity Commission has the power to revoke charitable status if the charity fails to observe the rules/ laws governing the administration of charitable funds. All wards and departments must register lotteries/ tombola s/ raffles with the the charitable funds manager. Further guidance can be sought from the charity team on extensions 6451 or Tombolas, raffles and other events cannot be publicised openly on wards or throughout the hospital because of security. Promotion must be done directly with patients and their families Donations from external companies Companies that the Trust works with may on occasion be invited and asked to participate in fundraising and charitable donations. Other companies may choose proactively to make a donation. Both of these ways of generating income for the charity are acceptable on the understanding that this is an altruistic gift only. Any members of Trust staff or companies trying to use charitable funds as a way to promote a product outside of the Trust s supplies processes may find their fund signatory status removed and companies may be barred from working with the Trust in future. Charitable Funds Policy v5 12

13 6.16 Fee waivering/donation of personal income Some consultants use charitable funds as a way to offset additional income. Any member of staff donating money to the charity does so altruistically. This does not give that person an increased influence on how that fund is spent, regardless of whether they are a fund manager or signatory. All funds remain under the governance of the charity and the charitable funds committee may choose to remove a fund manager if it feels there is a conflict of interests. For tax reasons, individuals wishing to donate personal income must inform the finance team in advance and they will be required to sign an appropriate declaration form. If reports or additional work are carried out during normal working hours the fees payable must be credited to the Foundation Trust and not the charity Paying donations in Cheques paid into the charity should be made payable to Gateshead Health NHS FT Charitable Funds. The fund number/ name of the fund should accompany the cheque to ensure that the money is credited to the appropriate fund. All donations received in wards and departments should be paid into the hospital cashier on the day of receipt, or in the case of a weekend or Bank Holiday on the next working day. It should quote the name and number of the fund. An official receipt will be given. Staff must not hold any monies relating to the charity, even if donated for the use of their department. Donor forms and donor envelopes should be made available in every ward and department and these gift aid opportunities must be encouraged by all ward and departmental staff. No staff should ever take receipt of donations in cash without completing paperwork and taking to the hospital cashier. No ward funds are allowed within the hospital or any of its departments. The cashiers office, located at the main entrance of the Queen Elizabeth Hospital, is open between 9.30am and 1pm and 1.30pm to 4.30pm Monday to Friday. A night safe is available outside of these hours to the right of the cashiers window where charity money can be deposited. Staff should ensure that the details of the donations are included with the deposits. Donations can also be made through the Trust s Just Giving website page at or through the charity s own website Gift Aid If a person donating money pays income tax in the UK then the charity is allowed to reclaim the equivalent of the basic rate of income tax from the Inland Revenue. Gift Aid messages are now incorporated in the donor forms (attached as appendix four) which should be used wherever possible and within the donation envelopes. Both of these documents are available on wards and departments with further copies available through the charity office. Charitable Funds Policy v5 13

14 6.18 Reserves of charitable funds Trustees are under a legal duty to apply charity funds within a reasonable time of receiving them. Trustees need to consider, and regularly review, what level of reserves it is appropriate for them to hold. If reserves are too high, the charity is retaining funds without justification and this could constitute a breach of trust. The reserves policy is attached as appendix eight TBC The charity requests that annual spending plans are produced. If funds build too high reserves with little or no track of income and expenditure, they may be subject to review Fund signatories changes to funds The financial accounting team should be advised, in writing, of any changes to the funds. An authorised signatory form should be completed by all managers and nominated officers of the funds. This can be found on the charitable funds intranet section at and is attached as appendix five. An up to date record of these members of staff must be held by the Charitable Funds Accountant, who must be informed of required changes to fund signatories before a new signatory starts authorising expenditure. This should include the names, designation and sample signatures. The Charitable Funds Accountant simply verifies expenditure and is NOT an Authorising Officer. There should be at least three members of staff who will take responsibility for the fund. These should be a medical representative, a nursing representative and the service line manager or equivalent. Any variation to these representatives must be authorised by the Charitable Funds Operational Group Reclassification or closure of funds When the purpose of a fund has ceased to be relevant or the balance has been spent or reduced to below 500, the charity s operational group will decide if the fund should be closed with the remaining balance transferred to another appropriate fund. This will be decided through a monthly programme of analysis and tracking of every fund within the charity and through identification of any plans highlighted in the spending proforma which each fund manager will be asked to complete on an annual basis. The final decision to close and realign a fund will be made by the Charitable Funds Committee. The application form to merge charitable funds is attached as appendix six Investment policy Under the Trustee Act 2000, trustees are required to have a written investment policy which demonstrates effective management of charitable funds, whether these are invested or held as liquid assets to meet forecast current expenditure. This should be incorporated into the existing operating cash and investment policy with a new section on charitable fund investments. The objective of the charitable funds investments is to generate enough income to cover the cost of administering the funds and over the long term to maintain the real capital value of the portfolio. The policy is in place and was last reviewed by a working group and ratified at the Charitable Funds Committee in January It is available on the charitable funds section of the intranet at Charitable Funds Policy v5 14

15 The charity has determined that no investments should be made in companies whose main business is related to profit from tobacco products, alcohol, pornography, gambling, armaments or energy coal extraction. The charity has adopted a cautious approach to risk, whilst seeking a high and growing income which allows us to maintain the real value of funds held and support the overall objective of expediting the beneficial nature of the funds Management and administration services The charity obtains management and administration services from the Trust for a charge agreed each year. This includes the charitable funds manager s post, financial administration, audit fees, the financial ledger system and Just Giving fees recharged. These charges will be apportioned across the funds at the end of the financial year on a proportional basis alongside the investment income received. Any change is agreed through the Charitable Funds Committee Reporting The Charitable Funds Committee meets quarterly and receives updates on the work of the charitable funds manager, performance of the charity, financial updates regarding income, expenditure and investments. Charitable fund financial reports are sent to fund managers monthly by the finance department. Accounts are produced annually and undergo a full audit from external auditors following this. The charity also produces an annual report which contains the published accounts and provides an annual update presentation to the trustees at the Board. The charity also submits an annual report and annual accounts to the Charity Commission. There are two sub groups which feed into the charitable funds committee; a flow chart for these is attached as appendix seven Insurance The charity does not directly hold any indemnity insurance; however the Trust does have director s indemnity insurance, which covers their responsibilities as trustees Complaints and concerns Any complaints or concerns around the decision making process for applications for spending will be handled following the process identified in appendix three. Any concerns regarding members of the charitable funds operational group or committee should be raised through the deputy chief executive and the Charitable Funds Committee Legacies The charity is informed of an incoming legacy through the financial services team. The charitable funds manager then makes contact with the solicitor to learn more about the reason for the legacy and a thank you and condolence letter is sent to next of kin or executors as appropriate. This is signed personally by the chief executive. Fund managers will receive regular support from the charity team to help them identify where, when and how the money can be spent and to ensure this is done in a timely manner. This is Charitable Funds Policy v5 15

16 7 Training particular important for those legacies which have set restrictions on how this money can be spent. A spending plan should be submitted to the charity within six months of receiving a legacy to indicate where and how the money will be used. Where the money cannot be spent in a reasonable timescale (two years from receiving the legacy), an application will be made to the executors and the Charity Commission to release the funding to another area of the Trust. Every effort will be made to ensure this is done in an area which related to the legator s care within the Trust. If an enquiry is received from an individual who wishes to make a bequest for the benefit of a speciality or ward area in their will, please refer them or their solicitor to the charity finance team on ext It is most important that the wording in a will is correct when leaving money to a charity. This could avoid possible complications at a later stage. All cheques and other assets received from a deceased person s estate, either from a solicitor or an individual must be forwarded together will all correspondence to the charity finance team, which will deal with the formalities that need to be completed with this type of income. In no circumstances should a fund manager or signatory attempt to deal with the administration of a legacy. Appropriate staff within the finance department and the corporate affairs team as well as fund managers and trustees will be trained on this policy. No other formal training is required in relation to this policy. Staff are advised to contact the financial accounting team or the charitable funds manager for advice in relation to this policy or to obtain further guidance on the operation of charitable funds. 8 Equality and diversity The Trust is committed to ensuring that, as far as is practicable, the way we provide services to the public and the way we treat our staff reflects their individual need and does not discriminate against individuals or groups on the grounds of any protected characteristic (Equality Act 2010). An equality analysis has been undertaken for this policy in accordance with the Equality Act Process(s) for monitoring compliance with the policy Standard / process / issue All funds an expenditure are of a charitable nature Monitoring and audit Method By Committee Frequency Review of Finance Charitable Funds applications and team Committee requisitions. Annual independent examination External auditors Charitable Funds Committee In line with Charitable Funds Committee meeting schedule Annual Ensure that all expenditure is approved by an appropriate fund manager Authorised signatory Internal audit review Finance team Internal None Audit Committee In line with Charitable Funds meeting schedule Annual Charitable Funds Policy v5 16

17 10 Consultation and review This policy has been reviewed in consultation with the Charitable Funds Operational Group, the Charitable Funds Committee, Internal Audit, External Audit, finance staff involved with the operation of charitable funds and the Trust counter fraud specialist. It has also been sent to individual fund managers for comment. 11 Policy implementation (including awareness raising) This policy will be circulated by the membership co ordinator and will then be available on the Trust intranet. It has also been presented to the Business Service and Development Committee, the Charitable Funds Committee and the Trust Board. 12 References Charities Act 2011 ( Charity Commission for England and Wales ( Equality Act 2010 ( HMRC charity guidance ( 13 Associated documentation OP27 Policy for the development, management and authorisation of policies PP29 Education, training and development policy and study leave procedure PP20 Policy on hospitality, gifts, inducements, social networking and standards of business conduct for NHS staff PP36 Fraud and Corruption policy Trust Corporate Governance Manual. Charitable Funds Policy v5 17

18 APPENDIX ONE Charitable Funds Committee terms of reference Reviewed at the Charitable Funds Committee December 2014 Approved at the Trust Board January 2015 Next review due September 2017 The Terms of Reference for the Charitable Funds Committee attached to Gateshead Health NHS Foundation Trust are as follows: 1a: The composition of the committee is as follows: Trust Director of Finance Trust Medical Director Trust Deputy Director of Nursing and Midwifery Three non executive members of the Trust Board Representation from the Council of Governors. 1b: The committee will be supported by the following officers who will act as advisors: Deputy Director of Finance Charitable Funds Manager Financial Services Manager. 2: The committee will meet at least three times per annum. The investment advisor will attend at least one of these meetings. 3: A quorum will exist when two members are present, one of which must be an executive member and one a non executive member. 4: The committee is a committee established by the Board of Gateshead Health NHS Foundation Trust and has delegated executive powers to manage the Trust s charitable funds in accordance with the law and best practice, and in the best interests of the Trust, its staff, patients and donors. 5: The committee shall advise the Board in all matters relating to the charity. Final authority rests with the Trust Board who are the appointed trustees. 6: The committee is responsible for advising the Trust Board on all matters relating to the investment of funds. This will include the appointment, and subsequent performance monitoring of any official investment advisors where appropriate. Charitable Funds Policy v5 18

19 7: The charity has a written investment policy and regularly reviews it, and the performance of its investment advisors, to ensure the funds are being managed in the best interest of all connected parties. 8: The committee is responsible for ensuring that the charity is managed in line with all statutory requirements from the charity Commission and Department of Health. 9: The financial administration of charitable funds will be subject to internal and external audit and there will be a formal external audit undertaken on the annual report and accounts prior to its adoption by the Board and submission to the Charity Commission. 10: The committee will advise the Trust Board on the appointment of trustees. 11: At every meeting the committee will review the following finance reports Executive Summary for the preceding three month period Investment Report from the investment advisor Fund Movements and Balances Income and Expenditure over 1k Balance of all Cash and Investments. 12: The Charitable Funds Operational Group will authorise the establishment of any news funds via the charitable funds manager. 13: The Trust s formal registration is as an umbrella/ special purposes charity. Individual funds within the charity are for internal management/ identification only. The committee will have the ability (in exceptional circumstances only) to move funds around within the charity if it is considered appropriate. This in no way should prejudice the wishes of donors. 14: The committee will oversee the administration arrangements for the charity. Charitable Funds Policy v5 19

20 APPENDIX TWO Gateshead Health NHS Foundation Trust Charitable Funds Regn.No CONFIRMATION OF PUBLICATION OF RESULTS FROM CHARITABLE RESEARCH This form should be completed by all charitable funds managers where they intend to use their fund for research purposes. The charity commissioners require that if charitable funds are used for research then the results are published. Failure to publish results could result in the Trust losing its charitable status. Name of Fund Fund Number Name of Fund Manager Summarised details of research carried out by the fund. Please enter details of where you intend to publish the results of the research. Expected date of issuing the results. Signed Date Fund manager Charitable Funds Policy v5 20

21 APPENDIX THREE Request for Charitable Funds expenditure form Name of person completing the form:... Fund No:.. Name:.. Current fund balance:... Amount being requested: Other signatories on the fund:.... Are the other signatories aware of this application?.. Evidence of agreement/disagreement on bid (note: your application will not progress further without this):. Brief overview of what the money is being requested for Demonstrate how the request will meet one or more of the aims of the charity outlined below: Enhance the patient experience over and above statutory and advisable requirements which would come through revenue budgets. Did staff training and development above mandatory requirements through training budgets ( you must include a completed study leave form authorised by OD & Training) Contribute do a registered research programme (demonstrate it is registered) Charitable Funds Policy v5 21

22 Demonstrate how the request meets the aims and objectives of your department and wider division Any other information you think would help Charitable Funds Policy v5 22

23 APPENDIX FOUR Donation form Thank you for donating to the Queen Elizabeth Hospital your kindness is very much appreciated. Please complete this form to register your donation. Name... Address: Post Code.. . Donation Amount.. Purpose Gift Aid Did you know that by ticking the Gift Aid box, we can claim the tax back from your donation and it doesn t cost you a penny? Please treat the enclosed gift of as a Gift Aid donation. Yes No I confirm I have paid or will pay an amount of Income Tax and or Capital Gains Tax for the current tax year (6 th April to 5 th April) that is at least equal to the amount of tax that all the charities that I donate to will reclaim on my gifts for the current tax year. I understand that other taxes such as VAT and Council Tax do not qualify. I understand the charity will reclaim 25p of tax on every 1 I have given. Please notify the charity if you: Want to cancel this declaration. Change your name or home address. No longer pay sufficient tax on your income. Signature.. Date Charitable Funds Policy v5 23

24 APPENDIX FIVE Charitable Funds authorised signatory form Directorate. Fund No:.. Name:.. Fund manager Name... Position . Telephone. Signature.. Date Additional signatory (at least two) Name. Name. Name. Name. Signature... Signature Signature Signature Signatories to be removed:... Authorised by associate director: Name... Signature.. Finance: Actioned. Date.. Charitable Funds Policy v5 24

25 APPENDIX SIX Application to merge Charitable Funds Funds to be merged Reason for merging funds New fund name Fund Manager: Name. Signature Additional Signatures Name. Signature (Minimum 2) Name. Signature... Name. Signature Authorisation from associate director: Name Signature. Date Finance use Actioned by. Authorisation Date. Date. Charitable Funds Policy v5 25

26 APPENDIX SEVEN Charitable Funds Committee reporting structures Charitable Funds Policy v5 26

27 APPENDIX EIGHT: Approval for expenditure at charitable funds committee form Approval for expenditure at charitable funds committee Basic information: Name of the person making the application Appropriate fund name(s) and numbers Department Division Project title or name relating to this bid Contact telephone number About your bid to date: How much are you seeking to use? Are the funds wholly available within the department? If not, please explain where you would seek additional funding from Has your bid been approved at BSDC and/ or new procedures committee? Please provide an overview of any comments made at these meetings Has your bid been approved by the Supplies and Procurement Committee? Will this include the procurement of goods/services? For all procurement of goods/services the following thresholds apply: 5k> 3 Competitive quotations must be obtained. 50k> Formal tenders or further competition via a Framework must be undertaken, this must also be reported to and approved by Supply Procurement Committee. Are all the fund managers and signatories signed up to the application? Are the service line manager and associate director signed up to the application? Charitable Funds Policy v5 27

28 Your bid: Please provide an overview of your project How will this bid improve and enhance the patient experience? How will this bid improve staff skills? Are there any training implications? Are there any financial implications for the charity as a result of this Will this project contribute to any research programmes? Why are charitable funds being requested for this project? What are the ongoing revenue implications attached to this project? Is it expected that ongoing financial costs will be met by the charity or revenue? If the charity, please outline the cost implications and where this will be resourced from including impact on the appropriate fund (ensuring that it is also covered in the fund spending plan) Charitable Funds Policy v5 28

29 What are the timescales for this project? Are there any reasons why this project could not be fully marketed and promoted as a charity achievement? Charitable Funds Policy v5 29

30 APPENDIX NINE: Charitable Funds Operational Group terms of reference Charitable Funds Operational Group terms of reference Reviewed at the Charitable Funds Operational Group December 2014 Approved at the Charitable Funds Committee December 2014 Next review due December 2017 The Terms of Reference for the Charitable Funds Operational Group are as follows: 1: The composition of the group is as follows: Trust Deputy Director of Finance Director of Strategy and Transformation Assistant Director of Finance (Financial Services) Charitable Funds Manager Charitable Funds Accountant. 2: Other people may be asked to attend the group on an ad hoc basis. 3: The group will meet every six weeks. 4: A quorum will exist when two members are present, one of which must be the deputy director of finance or the director of transformation and compliance. 5: The operational group will be where officers of the Trust supporting the charity and the committee can discuss and take forward operational issues relating to the management and development of the charity. It will be chaired by the deputy director of finance and administrated by the charitable funds manager. 6: The group will take responsibility for decision making which advances and maintains the operational management of the charity, compliance with governance and the charitable funds policy and to maximise fundraising opportunities. Projects amounting to expenditure in excess of 25k will come to the operational group before presentation at charitable funds committee. Projects with lower expenditure than this will also be required to come to Charitable Funds Committee if there are revenue consequences, the project exhausts the charitable fund or there are other implications from the purchase of equipment. 7: Actions requiring a swift authorisation from the committee will be done via to the chair of the charitable funds committee and henceforth to any member of the committee as the chair sees fit and the scheme of delegation. Charitable Funds Policy v5 30