Dealing with businesses
Your association may choose to partner with a commercial business to conduct an appeal.
Authorising appeals
Your association’s governing body or an approved person can authorise others to conduct appeals on behalf of the charity.
The authorisation must:
- be in writing
- contain the name of the person making the appeal
- detail any conditions on the authority.
Other people, such as street collectors, may help fundraise. When conducting the appeal, the name of the charity must always be stated.
Commission
A business can take a reward (like a commission) for assisting with the appeal.
If such a commercial arrangement is entered into, it must be:
- agreed by both parties in writing
- approved by us.
This does not apply if:
- the business sells a product as part of its normal business activity and occasionally gives a proportion of the sale of the product to the charity.
Donations collected
Make sure that:
- amounts collected from the appeal are paid into a separate account in the name of the charity or association
- any expenses are paid from the separate account.
This does not apply if:
- a commercial arrangement has been entered into
- the business sells a product as part of its normal business activity and occasionally gives a proportion of the sale of the product to the charity.
Advertising
If a commission arrangement requiring approval by us has been entered into, any advertising for the appeal must contain:
- the name and address of both your association and the business
- details of the commercial arrangement.
We must approve the advertisement before it is published.
Records
The business must keep:
- financial records about the appeal for 6 years
- correspondence for 1 year.
These records should include:
- the purpose of the appeal
- the authority to act as a promoter for the appeal
- accurate records showing full details of the appeal’s income and expenditure
- how all money and property was dispersed.