There was a debate on whether the charities who stood to gain from tainted cash should accept the donations
New guidance has been issued on the acceptance and refusal of donations in the wake of the Presidents Club scandal.
In January, there was widespread revulsion at allegations that hostesses at a men-only charity gala were groped, propositioned and sexually harassed by wealthy guests.
In its wake there was a debateon whether the charities who stood to gain from cash raised on the night should accept the donations.
Guy's and St Thomas' Charity said it would keep £365,000 in donations from the now defunct Presidents Club Charitable Trust, while the Royal Academy of Music promised to return a £10,000 donation.
The Institute of Fundraising (IoF), the membership body for UK fundraisers, has acknowledged the difficult position charities could find themselves in when accepting or rejecting possibly tainted donations.
Therefore, it has issued updated guidance to trustees and fundraisers – essentially telling them that whatever they decide to do, they must make clear and consistent decisions and make sure acceptance does not damage their reputation.
The Presidents Club scandal served as a timely reminder that charities need to carefully consider the donations they accept, and the necessary process to follow if they want to return a donation.
Donation acceptance is fundamentally important to a charity’s reputation and the trust the public have in them, and it is important to ensure that a conflict does not arise from accepting a donation with a charity’s ethics, values and vision.
The guidance outlines how to put together a policy on gift acceptance and refusal and examples of where charities might have to make difficult decisions.
Stephanie Siddall, policy manager at the IoF, said: “Fundraisers understand the important of making sure there is enough money and resource for their charity to be able to carry out its work. But, sometimes there are other considerations that can be more important – the value of donation may not always be worth the cost in terms of a potential loss of public trust and confidence, reputational damage or a conflict with the charity’s ethics, values and vision.
“These aren’t easy decisions, which is why this guidance is an important tool in supporting charities, fundraisers and trustees to know how to deal with these situations.”
