Guidance

Charity emergency appeals: starting, running and supporting charitable emergency appeals (CC40)

Updated 31 October 2022

Applies to England and Wales

After an emergency or disaster, concerned members of the public often contact the Charity Commission asking how to set up an appeal fund which, in many cases, could be a charity.

Many charities will also want to know whether and how they can respond to an emergency or humanitarian crisis. A charity must apply its funds for the aims it was set up to achieve, but this need not mean that they cannot help when an emergency happens.

In this guidance, the Commission outlines some of the different ways individuals and charities can support emergency relief efforts.

This guidance uses the terms ‘funds’ and ‘money’ when talking about charitable donations. Donations to appeals are usually money, but can be property of any kind, for example goods.

1. How you can help

There are several ways you can help in the event of an emergency. Most people choose to help by giving money, but other options include:

• fundraising for a charity

• volunteering for a charity

• starting a new charity (see section 1.3)

• starting a non-charitable fund (see section 1.4)

Each option has different advantages and disadvantages so you will need to carefully consider which the most appropriate is based on:

• the nature and location of the emergency

• what other charities and organisations are doing

• what kind of help you want to give

• the time and expertise you have to offer.

1.1 How to fundraise for an existing charity

The short answer – legal requirement

Get in touch with the charity. The Commission strongly recommends that you check with the charity before you raise funds on their behalf to find out whether there are any legal requirements that apply to your proposed method of fundraising. It is also a good idea to look at charities’ websites as they often have supporter pages containing useful information for supporters.

In more detail

There are different laws and regulations that apply to some methods of fundraising. Most charities will be able to provide you with advice to help you comply with charity and fundraising law, and their fundraising team may be able to give you tips and support.

Alternatively, you can also seek help from the Fundraising Regulator who can provide information on good practice for fundraisers.

The Commission guidance, Charity fundraising (CC20), aims to help charities and fundraisers work in a way that complies with legal requirements and good practice.

1.2 Fundraising and deciding which charity to donate the funds to later

You can do this, but it may mean that you will need to create a separate charitable appeal. If you run a fundraising appeal:

• for aims that could be interpreted as charitable, and

• you do not specify the charity or charities that you want to support

You will hold the funds on trust to apply them for the charitable aims set out in the appeal with you as the trustee. This might be the case even if it was not your intention.

1.3 What is involved in starting a new charity

The short answer – legal requirement

Starting a new charity comes with specific duties and legal responsibilities and you should be aware of what they are before you decide to go ahead. You should also bear in mind that there will be existing charities already carrying out emergency relief work who would greatly value your support. Supporting such charities would be an effective alternative to starting your own charity.

In more detail

Before starting a new charity, the Commission recommends that you research the charities that already carry out the same work as you are interested in. You might decide that to support one of these is the best way forward - alternatively an existing charity will be able to advise on how a new charity can complement and support work already being carried out. You can find information about registered charities in England and Wales on the Register of Charities.

A charity comes with responsibilities, particularly for its trustees, so starting a new charity needs careful thought and proper advice beforehand. You must make sure that an appropriate legal structure is put in place and that your charity meets its legal obligations in both fundraising and how funds raised are subsequently used and accounted for.

A charity must be set up only for charitable purposes - this means that a charity must:

• have an aim or aims which the law accepts as capable of being charitable

• be able to show that the aim is for the public benefit

• not be set up for a political purpose; and

• be independent - in other words, its trustees must be able to decide what the charity does with its funds without direction from other people or organisations

As a trustee, you will have and must accept ultimate responsibility for directing the affairs of the charity and ensuring that it is solvent, well run and delivering its charitable aims for the benefit of the public. Trustees must exercise reasonable skill and care in carrying out their duties to ensure that they:

• comply with the law (including charity law)

• act in the interest of the charity

• comply with their duties of care and prudence

• maintain control of the charity’s funds, keep proper financial records and ensure that funds are used properly, lawfully and only to further the charity’s aims

1.4 How to set up a non-charitable fund

The short answer – legal requirement

The Commission recommends that you take professional advice about whether your proposed fundraising will be charitable or not. A common example of a non-charitable fund is where funds are raised for the benefit of a particular person and they can only be used for this person. In this case, the funds will not have been raised for the public benefit, will not have charitable aims and so will not be charitable within the law.

In more detail

If funds raised are for a non-charitable purpose, they will not be subject to charity law or the jurisdiction of the Commission. This means that you will have greater freedom and independence in spending the funds.

However, there are some disadvantages to fundraising for a non-charitable purpose:

• non-charitable funds do not qualify for the same tax reliefs as charitable funds do

• such fundraising appeals must not be represented as charitable and may not therefore attract the same level of support as charitable appeals

• it is a criminal offence to say that you are collecting for a charity when you are not. In addition, if the appeal implies that the funds are to be raised for a charity, the funds may be deemed to be charitable whether that is your intention or not

If you are thinking about setting up a non-charitable fund, you should consider taking professional advice so that you do not set up a charity if you do not intend to.

The Commission is only able to provide advice and guidance for charities.

1.5 How to become a volunteer for a charity

Find out from the charities responding to the emergency what they are doing and what they will need from a volunteer - the Register of Charities provides contact details for all charities registered in England and Wales. Charity websites will usually describe what volunteering opportunities they have and how you can apply.

There are also many organisations that provide support to volunteers, and the National Council of Voluntary Organisations (NCVO) and Wales Council for Voluntary Action (WCVA) have links to a number of volunteering bodies.

2. Existing charities responding to an emergency

This section looks at what charities need to think about when considering and planning a response to an emergency.

2.1 How your charity can help

The short answer – legal requirement

This will depend on the aims of your charity, as well as the way you can practically further those aims. This will be for the trustees to decide taking into account:

• the aims your charity is set up for

• your charity’s capacity to respond

• whether other charities are better placed to respond to this particular emergency and any advice they have to offer

In more detail

Your charity will have been set up with particular aims decided by its founders. These are set out in its governing document, and the charity must operate within these boundaries. However, see section 2.3. Your charity’s trustees have the discretion to decide what work the charity can do that will fall within its aims, and they can be imaginative and innovative in deciding what that is.

Where there are restrictions, for example working within a defined geographical area or working with or raising funds for particular types or classes of beneficiary, your charity must comply with them.

It is the trustees’ duty to ensure that their charity’s funds are used in accordance with its aims and in the charity’s interests. So, if your charity does not realistically have the capacity to deliver services in the emergency area, you should focus on raising funds and passing them to a charity already working in the field.

By raising funds and passing them on to another charity, you will both avoid the possible duplication of services, responsibilities and administrative costs of setting up a new operation and make the best use of funds raised. Alternatively, your charity could support the efforts of other charities by redirecting donors to them, or by running a joint fundraising appeal. Your charity should perform the appropriate due diligence checks before passing funds to or working with other organisations and individuals (see section 3.4).

If raising funds for emergency relief efforts does not fall within your charity’s aims, then members of the charity can still give directly, or organise collections in a personal capacity. If this happens, the fundraisers should ensure that any collection is not made in the name of or on behalf of your charity. Neither should these funds be moved through your charity’s bank account.

These are some practical examples of how charities set up with different aims might help in emergency relief efforts:

Example 1 - An educational charity

A charity has the aim of providing a school for the advancement of education, and its primary purpose is the provision of education to the pupils at the school. Beyond the curriculum offered by the school, it offers other activities including fundraising carried out by the pupils for other charities, some of which operate internationally.

The trustees consider such fundraising to be an educational benefit to the pupils related to the overall educational aim of the school.

Example 2 - A faith based charity

A Christian media charity has been established to change lives for good in spiritual, moral, ethical and practical ways which reflect and demonstrate the Christian faith. Its overall aim is the advancement of religion.

The promotion of, and fundraising for, other organisations for the relief of need can also be an expression of religion and falls within the advancement of the Christian faith. This means that relief need not be restricted to beneficiaries who are Christians or to organisations set up to promote Christianity.

Example 3 - A village hall

A village hall charity for the benefit of the inhabitants of a small village wants to contribute to an appeal run by an international charity in response to an overseas emergency. As the aims of the charity are clearly limited to benefiting the inhabitants of this particular village, it is not within the aims of the charity to contribute its funds to the appeal.

However, the charity decides to let its premises be used for a fundraising bazaar organised by local inhabitants. The organisers make it clear that all the proceeds are to be donated directly to the emergency appeal. This means that the charity will be reimbursed for any expenses incurred by hosting the event.

2.2 Raising funds in collaboration with other charities

The short answer – legal requirement

Your charity can collaborate with other charities in raising funds as long as the purpose of the collaboration furthers your aims. Unless your charity and your partners are fundraising to support your own emergency relief activities, funds raised will normally be passed over to an established charity or other organisation working in the field.

In more detail

Any type of collaborative working between charities can have significant advantages, particularly in keeping down costs and the sharing of resources and knowledge. The Commission encourages working together where it enables charity funds and resources to be used more efficiently and effectively. However, a charity must be able to justify any collaboration or joint working arrangement as being in support of its aims and being in the interests of its beneficiaries.

The principles that apply to a collaboration between charities for the purposes of raising funds in response to an emergency are very much the same as apply to any other form of charity collaboration.

Any fundraising collaboration:

• must be in the interests of your charity’s beneficiaries

• must further your charity’s aims

• should be subject to a written agreement between all parties to the collaboration

The written agreement referred to in the list above should set out the practical details of the partnership. These will usually include:

• what the purposes of the collaboration are

• whether the funds raised will form a separate charitable fund

• how the collaborating organisations’ funds and resources will be used

• establishing the processes, roles and responsibilities for administering the funds raised

• what will happen to any surplus funds (see section 4 below)

• what will happen if not enough has been raised, or for some other reason, the purposes of the appeal cannot be achieved (see section 4 below)

• how long the collaboration will last for

• the accounting and reporting arrangements

Where a collaborative fundraising appeal involves charities and non-charitable partners, the funds raised might need to be established as a new charitable fund to be used for the purposes of the appeal. This will mean that you and your partners will be setting up a new charity with all that entails (see 1.3), and which may have to be registered as a charity.

Otherwise, the appeal literature can make it clear that all funds raised will be passed to one or more other named charities to use for their own work in the field.

In any case, a collaboration for fundraising purposes will need to make it clear to donors what their gifts will be used for and how they will be applied.

2.3 Changing your charity’s aims to respond to an emergency

The short answer – legal requirement

It may be possible to change or widen your charity’s aims. In most cases, you must have the Commission’s prior authorisation.

In more detail

The Commission will usually need to authorise any changes to a charity’s aims. This means that you should be able to show that any proposed change is in the interests of your charity and its beneficiaries. See changing your charity’s governing document.

For example, a charity with aims specifically restricted to a local area cannot usually operate or use its funds for an aim outside of its defined area. Your trustees could apply to the Commission for consent to widen the area your charity can work in. However, such a change would be significant and your charity should consider the long term impact of changing its aims, especially the effect it would have on your charity’s current and future beneficiaries. It is also important to bear in mind that such a change is relatively complex and may take some time, although we will prioritise requests required urgently in times of major emergencies.

3. Planning an emergency appeal

Emergency appeals need careful planning. They are bound by the same legal requirements as any other fundraising appeal and trustees should take particular care that they are clear about the rules. Trustees should follow the standards set out in the Fundraising Regulator’s Code of Fundraising Practice as well as considering other good practice recommendations and professional advice.

3.1 How your charity can prepare for an appeal

The short answer

Whether your charity wants to raise funds for its own emergency relief work or intends to support the work of other charities if an emergency happens, it is important to have contingency plans in place. Given the urgent need for relief, there will be an expectation that funds raised will be applied quickly and proper planning can ensure that this happens.

In more detail

Any plan should cover basic issues such as:

• identifying the rules and regulations governing appeals and fundraising

• deciding whether appeals will be to fund your own relief efforts (if appropriate) or whether you will be fundraising for other existing charities or organisations working in the affected area

• what the basic terms of any fundraising appeal might be

• how an appeal might be publicised

• what donor and appeal information you need to keep

• what other fundraising activities your charity might organise

• what your secondary purpose will be (see section 4.3)

• whether you want to collaborate with other partners in any appeal and, if you do, how you will work together

In the event of an emergency, the basic plan can be developed and refined to take into account the nature, scale and location of the crisis. Knowing what your charity is planning to do with the funds and what practical steps will be needed to carry out those plans is essential for setting targets for the amounts to be raised and how long the appeal will last.

If your charity doesn’t realistically have the capacity, expertise or local presence necessary to provide practical emergency relief, it will be more effective to work with and raise funds for another charity with similar aims that does. If the funds raised by your appeal are simply to be passed to another charity, it might be possible to identify a suitable recipient beforehand so that funds can be passed over as swiftly as possible.

Your charity might also want to consider passing the funds raised by an appeal directly to a charity or other organisation working in the emergency area (see section 3.2).

3.2 The importance of risk management when planning an appeal

The short answer

It is essential to identify and plan for the management of potential risks when planning any response to an emergency. However, there are particular risks associated with running an appeal that need to be considered. A robust risk management process will help you ensure that:

• you have thought about what risks (big and small, likely and less likely) there might be

• you have planned for how they might be managed

• you improve your forward and strategic planning, and

• your aims are successfully achieved

In more detail

Each charity will face different types and varying levels of risk and will have different capacities to absorb or tolerate those risks. Appealing for funds may only be a small part of your charity’s emergency relief work and this might mean that your risk management process will need to extend to the risks attached to the actual delivery of practical aid on the ground.

However, this guidance is concerned with starting, running and supporting successful emergency appeals, and risks associated with appeals are likely to include:

• raising too much or too little money

• not being able to spend the funds as you intended

• inability and lack of capacity to cope with the volume of donations

• the terms of the appeal are open to misinterpretation or misunderstanding

• failing to balance the cost of raising funds with the actual funds raised

• failing to keep adequate donor, donation and Gift Aid information

• inadequate financial controls in place

If your charity intends to raise funds with the intention of sending them directly to charities or NGOs working in an emergency area, it is vital that you recognise and plan for the management of any potential risks that might be associated with operating in particular areas.

Your charity should, as part of the risk management process, ensure that before it commits to passing over any funds to other organisations or individuals, it carries out adequate due diligence checks on them. The aim of these checks will be to satisfy your charity as far as possible that they are legitimate and appropriate partners for you to work with, and will deliver the charitable aid that the funds have been raised for.

See the guidance on Charities and Risk Management (CC26) for a more detailed look at risk management generally.

3.3 What you should do to effectively manage the funds raised

The short answer

If you are fundraising to pass funds to an existing charity or other organisation, the process of distribution of funds should be relatively straightforward (but see 4.2).

If you are raising funds for your own emergency relief work or will be responding to applications for funds from organisations or potential beneficiaries, you should ensure that appropriate governance measures have been put in place for the proper distribution of those funds.

In more detail

For charities that will be dealing with applications for funds from organisations and potential beneficiaries themselves, it will be important to consider the following questions:

• do your existing trustees and personnel have the skills and experience to be able to distribute the funds effectively?

• will you be able to employ extra staff or recruit trustees with particular skills if necessary? Handling and accounting for large sums of money can be challenging, especially where donor expectation is likely to be especially high

• have you contacted administrators of previous appeal funds to learn from their experiences and advice?

• how will you deal with applications for funds? Have the trustees decided on eligibility criteria and when they will (or will not) approve applications?

• how will applications be made? If by a form, have you considered diversity issues, for example. translation services?

3.4 What you should do to make sure (and show) that funds raised have been used properly

The short answer – legal requirement

Trustees have a legal responsibility to ensure that funds raised are used for the purposes for which they were raised. This means your charity should consider putting in place a range of checks and controls to safeguard its funds and prevent fraud.

In the interests of openness and transparency, your charity should also be able to demonstrate to donors and the general public that funds raised have been, and will be, used for the purposes they were given. Disaster Action’s Guidance on Management and Distribution of Disaster Trust Funds is a useful source of information.

In more detail

Your charity should draw up and put in place policies and procedures for the protection of its property - what is appropriate will depend on your charity’s size and activities.

A significant aspect of a trustee’s legal duty is to protect charitable assets. Before your charity commits funds and resources, the Commission strongly recommends that you carry out appropriate due diligence checks on:

• people and organisations that your charity passes funds to

• people and organisations that your charity receives funds from

• people and organisations that you will be working with

After your charity has committed funds and resources, you should monitor and evaluate a project or the use of a grant. This means that your charity should have processes and procedures in place to examine and demonstrate:

• how efficiently the resources were used

• how successful it was in achieving its aims

• how it selected beneficiaries and projects

The results of monitoring and evaluation will also enable a charity to demonstrate to donors how the funds they have given have been used and that they reached the intended beneficiaries. It is important for the future work of charities in general that the public has confidence that their donations will be used properly and in accordance with the terms of any appeal. Monitoring and evaluation will also enable your charity to learn from its experiences and to improve its future performance.

It is important for your charity to recognise that there will be a range of expectations from donors, and clarity about the aims of the appeal and the effectiveness of your charity may help to prevent potential conflict and frustration. Information on the following issues might be helpful to donors:

• the capability of your charity to either distribute funds properly or to carry out relief work itself

• your charity’s commitment to ensuring that staff are properly trained and that trustees have the appropriate skills and experience

• the terms and criteria applying to any grants made to individual applicants (if applicable)

• communicating as far as possible to donors how funds raised have been used

• how long the fund will exist for and how it will close

4. Running a successful appeal

Charities act as a valuable and speedy channel for donations from the public and, because they are charities, the public can see what has been done with their money. This section sets out the legal and good practice points that apply to running a successful appeal.

4.1 The key points to remember when appealing for funds

The short answer – legal requirement

Emergencies require quick responses but there are a number of legal and good practice issues which your charity will need to consider. It is important that the appeal:

• clearly identifies your charity and what it does

• makes it clear what the funds will be raised for and how they will be used

• lets the public know how to donate to the appeal

• explains the Gift Aid arrangements

• says what will happen if you cannot achieve your appeal purposes (for example because you have not raised enough), or where you have funds left over (surplus funds). This is known as having a ‘secondary purpose’

In more detail

Listed below are some key points for charities to consider when raising funds.

Your charity must:

• ensure all fundraising material clearly identifies your charity and includes your registered charity number. Apart from being a legal requirement for charities with an annual income of more than £10,000, this will ensure that your appeal is not mistaken for a fraudulent appeal

• keep accurate and comprehensive records of donations

• account separately for emergency appeals to make sure that you keep accurate financial records

Your charity should:

• set the terms of the appeal widely enough to deal with raising too much or too little money, or a change in circumstance where your charity cannot use donations as intended (see 4.3 and, 4.4)

• keep donors informed about how funds given are being used

• consider a joint fundraising effort (see 2.2) if there are other charities with similar aims raising funds for the same purpose as you

The Code of Fundraising Practice by the Fundraising Regulator sets out the responsibilities that apply to fundraising carried out by charitable institutions and third-party fundraisers in the UK. It deals with the important issues of being accountable, transparent and clear when raising funds.

4.2 Communicating with the public

The short answer

If you are raising funds to make grants to individuals or organisations, you should let the public know who can apply for funds, what the application criteria set by the trustees are and how potential beneficiaries can apply.

If you are passing funds to another charity or organisation, it is important to make sure that your donors know the details so that they can follow the progress of the relief effort and see how their funds have been used.

In more detail

It is helpful to let the public know:

• how charity’s donations can be made

• your charity’s contact details

• the immediate and continuing needs of those affected by an emergency

• which potential beneficiaries can apply for assistance

• the details of the appeal and how potential beneficiaries can apply

• what the trustees’ criteria for applications are

• the progress of any relief effort and how funds are being used

4.3 How you should word the terms of an appeal

The short answer – legal requirement

The wording should make it clear how funds raised by the appeal will be used. It is also helpful to include any other information that may give donors confidence about the use of the funds.

The appeal’s wording should also include a secondary purpose that will make it clear to donors what will happen if too much or too little money is raised by the appeal, or if the charity cannot use the donations as intended.

In more detail

It is important that potential donors can easily understand how their money will be used. The terms of the appeal should therefore make clear:

• the purpose of the appeal - in other words, what the money will be used for

• who is organising the appeal

• what the target of the appeal will be - this might be a time target or a financial target

• how donations can be made

• what deductions will be made for expenses

• any secondary purpose of the appeal

A secondary purpose says how you will use donations if too much or too little money is raised, or if the charity cannot use the donations as intended.

For example:

“We are raising funds to provide emergency shelters for those communities affected by the earthquake in X. If we have money left after we provide the shelters, or we are unable to provide the shelters, we will spend your donations on other projects to help communities affected by the earthquake in X.”

Including a well-thought-out secondary purpose will help you to avoid lengthy and expensive procedures for contacting donors if you cannot achieve your appeal purposes, or other required action if you raise more than you need.

You can also make a broader appeal for donations if this works for your appeal. For example:

“Here is an example of one of our projects. To support this and other projects that we run, please give a donation to our charity.”

If you do not include a secondary purpose, and you cannot use the funds for the purpose they were intended, you cannot simply use them for another purpose. You must do one or both of the following:

• offer donors their money back
• follow a required process to agree a new purpose for the funds, so that you can use them (see section 4.4)

4.4 What you must do if you raise too much, too little, or you cannot use donations as you intended

The short answer – legal requirement

In these circumstances, if your appeal included a secondary purpose (see 4.3), you can use the funds on that secondary purpose.

If you did not include a secondary purpose, the law requires certain procedures to be followed. You cannot just spend the funds on different purposes.

In more detail

Where surplus funds are concerned, check your appeal wording. If you included a secondary purpose, use the funds on that secondary purpose.

If you did not include a secondary purpose, read this guidance and follow the steps outlined in here:

• Using donations when you’ve raised more than you need

Where you have not raised enough: even though the funds raised might be less than you hoped for, if they can be applied consistently with the purposes of the appeal (even if not on the same scale), they can still be used.

However, if the amount raised is simply not enough to achieve the appeal purposes in any way at all, or for some other reason you cannot achieve the appeal purposes, and you did not have a secondary purpose (see 4.3), the law requires certain procedures to be followed. Read this guidance and follow the steps outlined in here:

• Using donations when you have not raised enough money or you cannot achieve your appeal purpose

4.5 Asking for or accepting donations of goods

Your charity should only ask for or accept donations of goods where it has decided that it would be a practical, cost-effective and appropriate way to respond to the needs of emergency victims.

For charities and their beneficiaries, it can often be more effective to transfer funds rather than goods to the affected area. Your charity might want to ask potential donors to sell unwanted items and donate the proceeds to the appeal, or to accept unwanted items and then sell them to raise funds as long as this intention is made clear to the donors.

4.6 When your charity should close the appeal

Before launching an appeal, you should have decided on a closure target. This date and any other details about closure should be included in the appeal literature. This closure target could be:

• a financial target

• a specific date

• how you will determine that the aims of the appeal have been met

and it should take into consideration:

• whether you are passing all funds raised to another charity or aid organisation

• whether any recipient of your appeal funds has specified how much will be needed to deliver a particular aim

• if you are involved in the delivery of aid, the needs of the beneficiaries - are you looking at immediate or longer-term relief?

• the cost of delivering an emergency relief programme

• a deadline for when the last donations will be accepted

• claiming Gift Aid and the time it will take for claims to be processed

5. Avoiding fraud

Because of the range and diversity of charitable activity, there is no single method of financial control that will protect all charities from fraud and other types of financial crime. Charity trustees have a duty to make sure that their charity’s funds are protected, properly used and accounted for and this means that they will have to use their knowledge and judgement to decide how best to safeguard their funds.

5.1 How you might be at risk

The short answer

Because of the high level of public trust and confidence in charities, some people seek to take advantage of this and can use a variety of methods to divert funds raised for charitable purposes for their own personal gain.

In more detail

Common types of fraud you should be aware of are:

• websites that mimic a legitimate charity’s website in order to gain access to a donor’s bank account or divert funds donated away from the charity

• emailed fundraising appeals that direct donations to personal bank accounts using a legitimate charity’s name and logo, or a fake charity name that sounds legitimate

• setting up websites and appeals for funds with a fake charity name that sounds like a well-known charity

• fundraising events where very limited amounts (or none) of the funds raised are passed to the charity itself

• using a charity’s online donation processing systems to test stolen credit card numbers

• using charities as a way to launder money - the risk of this is higher when funds are transferred overseas

Charities can also be vulnerable to fraud and other abuse from partners or persons working or volunteering for the charity. Read Commission guidance about protecting your charity from fraud and cyber crime and use the tools in the charity fraud awareness hub for extra support.

If you discover or suspect fraud, report it to:

1. Action Fraud
2. The Charity Commission

5.2 How you should protect yourself against fraud

The short answer

Your charity should draw up and put in place policies and procedures for the protection of their property - what is appropriate will depend on the size and activities of the charity.

Read Commission guidance about Internal Financial Controls for Charities (CC8).

In more detail

Charities using funds in areas affected by emergencies will face different risks of fraud and other financial crime, chiefly because they may not be operating in stable physical and financial environments. In addition, emergency appeals are sometimes vulnerable to the types of fraudulent activities described in 5.1.

If your charity is operating in areas where the physical and financial infrastructure is affected, it may need to rely more on cash transfers or the use of financial intermediaries. This might mean that it will be challenging to maintain the same standards of transparency and accountability as expected of charities operating in less difficult situations, but it is important that you try to do so.

Commission guidance on Charities Working Internationally has more detailed information on this subject.

Read Commission guidance on:

• fraud
• cyber crime

You can also use the tools in the charity fraud awareness hub for extra support.

Charities should consider these key action points when thinking about fraud:

• put in place robust financial controls and governance measures

• develop a fraud risk assessment process to assess the risks that a charity of your size, structure and activities might be exposed to

• train your trustees and staff to be aware of and identify potential fraud and risks

• restrict and closely monitor access to sensitive information

• establish authority levels for placing orders and approving payments which are clear and preferably documented

• reconcile bank statements and other accounts on a regular basis, carry out spot-checks on books and records

• periodically audit financial processes and procedures

• develop and implement an anti-money laundering policy

• record suspected and confirmed instances of fraud - this could help your charity spot emerging patterns and identify risk areas. If losses have already happened, it will help measure them and build an evidence base

• plan what to do if fraud occurs

5.3 What happens if an appeal is being run using a charity’s name without the charity’s permission

The short answer

You should contact the people running the appeal and, depending on the situation, either enter into a formal agreement with them or ask them to stop.

In more detail

In many cases, an appeal may have been launched by a well-meaning member of the public who intends to donate the funds raised to your charity.

They are probably not aware that there are strict laws surrounding fundraising and they haven’t contacted your charity prior to raising funds on your behalf.

If this does not turn out to be the case, the Charities Act 1992 and the Charitable Institutions (Fund-Raising) Regulations 1994 enable charities to seek an injunction restraining someone from raising funds in the charity’s name where:

• the fundraiser is using methods to which the charity objects, or

• the fundraiser is not a fit and proper person to raise funds for the charity, or

• the charity does not wish to be associated with that fundraising venture

At least 28 days before seeking an injunction, the charity must give notice in writing to the fundraiser stating that:

• they object to the fundraising on the charity’s behalf

• they have objections and what they are

• they wish them to stop, and

• if the fundraiser does not comply with the notice, the charity will seek an injunction

If the fundraiser does not co-operate, and you suspect they may be involved in fraudulent activities, report them to the Police and the Commission.

Part of the Commission’s role as regulator is to keep the public informed about issues that affect the proper use of charitable funds and it runs media and public awareness campaigns to let people know how they can spot, avoid and report fraud.

6. Checklist for applying to register a charity for emergency relief

If you have decided to apply to register an emergency fund as a charity with the Commission, the checklist below will help it process your application quickly.

• apply online on the Commission’s website

• ensure that your aims are charitable and for the public benefit

• ensure you have all your paperwork ready, including your governing document and signed trustee declarations before you apply to register

• to make the process run as smoothly as possible, use an approved model governing document available online

• submit all your documentation together. If an incomplete application is submitted this will delay processing

• make a note in the ‘additional information’ section of the application form, that the proposed charity is to be set up to respond to an emergency

• send a covering email to the Commission with your application - state the application is to start an emergency relief charity and include your application number. This will help the registration team to prioritise your application