Charitable Donations advice....

[Lucan Unlordly]

I'm looking to add an option to make a charitable donation when our subscribers pay their annual fee and am currently exploring the likelihood of any issues if we take the money and forward a one off payment every month. So far, all seems ok?

Whilst the reasons for donating to the charity in mind are very much in sync in with our customers I'm thinking of incentivising them to make a higher donation in order to win a prize. The prize to be paid for and supplied by ourselves or other willing contributors. I'm just asking myself if enticing customers to part with more $$$$ this way is allowable ?

 

[eteb3]

I can’t see any reason why you can’t incentivise customers in that way.

I have no direct experience of this but with long experience of charities in general, you might want to check whether what you describe amounts to a lottery: these are exempt from the usual regulations if they’re for charity, but if it is (legally) a lottery, there will be at least some hoops to jump through.

You should also get clear on the status of the donations while they’re in your hands: are you agent for the donor, in which case there is only a contractual agreement to pay onwards; or agent for the charity, in which case they will need to do due dil on you; or is the money held on trust for charitable purposes, in which case your bank will get twitchy.

Trusts can arise regardless of what’s on paper. Legal advice would be £££ so in your position I would try to find some off the peg arrangement that someone else has done the work for.

But it’s a great idea, good luck with it.

PS remember some people have a conscientious objection to lotteries or receiving anything in return for donations so I would make it optional.

 

[Ozzy]

remember some people have a conscientious objection to lotteries or receiving anything in return for donations so I would make it optional.

I was about to say this same thing. I've experienced doing fund raising activities, and had more than a small number of people ask to not be entered into the 'raffle' etc we were running as it went against their beliefs/morals/etc.

If you are going to do something, then personally I'd suggest make it optional, but personally I wouldn't do any incentive and just give people the option if they wish. Then if you do a fund raiser activity then do it separately.