Know Your Donor

When accepting large donations, does your charity or its trustees verify the source of the donation? This is a critical question, especially given current global conflicts and the sanctions in place. At a Charity Chatter meeting, we discussed the importance of thorough due diligence before accepting any substantial contributions.

Before accepting a donation, it is crucial for organisations to conduct their due diligence! Here are a few key steps your charity should take:

✅ Document Verification: Ensure all donors provide proper identification and documentation. This helps establish their legitimacy and prevents any potential issues down the line.

✅ Source of Funds: For larger or unfamiliar donations, enquire about the origin of the funds. Understanding where the money comes from adds transparency and guards against potential risks to the organisation.

✅ Regular Reviews: Implement regular reviews of donation records to identify any irregularities or red flags. This proactive approach helps maintain compliance and builds trust with stakeholders.

Remember, compliance isn't just about following rules; it's about upholding the values and integrity of your charity/not-for-profit organisation. If you have any questions or need assistance, feel free to reach out to a member of the Beeston Clarke Accountants team.

Here's a link to the Charity Commission guidance on Protecting Charities from Harm (Chapter 2) that you may find useful: click here.