In light of the ongoing News of the World phone hacking coverage, Simon Morrison from the IOF debates the acceptance or refusal of donations
Unless you’ve been stuck on the moon, the demise of one of the countries most popular newspapers, the News of the World, can’t fail to have escaped your attention over the past couple of weeks. The all-encompassing fallout has been felt far and wide. It has affected public perceptions of the voluntary sector as well as mainstream media and leading public figures. How? Charities became part of the story after many were offered free advertising – and a few, a share of the paper’s proceeds – in the last ever edition, published on 10 July.
Was this an offer charities, which are still in the midst of a biting recession and keener than ever for exposure, couldn’t refuse? Or did they back away from this special offer having considered the value of their brand, such that they could not be associated with the publication? Whichever side of the fence we sit on, this scenario illustrates the importance of having a process in place when it comes to deciding whether to accept or refuse donations that are offered by external parties.
Timely reminder
From the Institute of Fundraising’s perspective, this was ideal timing to remind fundraisers of the guidance within the ‘acceptance or refusal of donations’ Code of Fundraising Practice. For the record, the Code states that a clear policy on the acceptance or refusal of donations is important for all charitable organisations. Such a policy needs to be acceptable to those associated with the charity and agreed formally by its trustees. The decision as to whether a charity ought to accept a donation or not should be grounded in its mission and policy objectives.
Perception issues, which often have an adverse affect on charities, crop up in the media fairly often. A recent news story in The Guardian headlined ‘A high profile charity gala – but what was it in aid of?’ reported that The Federation Fund laid on a ‘starry event’ in Moscow in the name of charity, even though the paper revealed the charity is “no longer about raising funds, but raising awareness”. Is it any wonder fundraisers feel they sometimes encounter a questioning or critical public?
We see many examples of charities partnering with, or accepting donations from, high-profile corporate organisations.
Charities can be an attractive target for other businesses because of their reputations and the vehicle for positive PR that they represent. Yet, many charity stakeholders will pick up on (and make judgments about) income sources, particularly if they include funds from well-known companies which may deal in fast food or activities that are damaging to the environment or public health.
Charities must be perceived as trustworthy to make the best of their fundraising and this involves promoting a positive, consistent image.
In the case of the News of the World offer, if a charity can justify accepting a gift as a means of supporting beneficiaries in a manner consistent with its mission and vision, few can point the finger. But we all need to be careful that the particular trust our sector enjoys isn’t eroded through accepting ill-advised gifts, or using fundraising as shorthand for activities with less than clear and demonstrable outcomes.
Simon Morrison is director of marketing and communications at the Institute of Fundraising.
This article first appeared in The Fundraiser, Issue 7, July 2011
