Home » Donations Terms and Conditions

Donations Terms and Conditions

1. Applicability

This policy applies to all members of our Community Interest Company (CIC), including trustees. All individuals must adhere to this policy when accepting or refusing donations.

2. Compliance

As a registered CIC, we comply with all relevant UK laws and regulatory guidelines, including those issued by the Charity Commission, HMRC, and the Fundraising Regulator.

2.1 Ethical Fundraising

• We will not knowingly mislead or provide false information to donors
• We will not put undue pressure on donors, particularly if they may be vulnerable

3. Acceptance of Donations

We accept donations on a good-faith basis. Donations are presumed acceptable unless evidence suggests otherwise.

3.1 Risk-Based Due Diligence
We conduct risk-based due diligence to mitigate risks associated with accepting donations, including reputational damage, legal violations, and public trust issues. Due diligence aligns with the Charity Commission’s guidance on “Know Your Donor” and includes the following measures:

3.1.1 Donor Identification and Verification

• For significant donations or those from unfamiliar sources, we will verify the donor’s identity. This includes checks on individuals (e.g., identity documents) and organisations (e.g., company registration details).

3.1.2 Source of Funds and Purpose

• We will assess the source of funds to ensure they are not derived from illegal activities, such as money laundering or fraud. Donations suspected of being linked to unethical or unlawful activities will be rejected
• We will confirm that the donation’s purpose aligns with our CIC’s values and objectives

3.1.3 Documenting Checks

• All due diligence checks will be documented and retained for six years, or longer if required by law, to ensure transparency and regulatory compliance

3.1.4 Politically Exposed Persons (PEPs)

• Donations from PEPs or individuals with public prominence will undergo enhanced due diligence to assess risks of corruption or undue influence

3.1.5 Anti-Money Laundering (AML) Compliance

• We will comply with anti-money laundering regulations, ensuring appropriate risk controls and monitoring for suspicious activity. For crypto asset donations, we will implement additional measures, including blockchain analysis tools where necessary

3.1.6 Ongoing Monitoring

• Significant donations will be monitored over time to identify any new risks or changes in the donor’s circumstances

Decision Criteria
We balance the potential impact on beneficiaries of not accepting funding against the risk of harm to the CIC from accepting a problematic donation. Donations will only be accepted when due diligence confirms alignment with our values and legal obligations.

3.2 Factors Considered:

When deciding to accept or reject donations, we assess:

• Donor vulnerabilities (e.g., health conditions, financial hardship, language barriers)
• The donor’s age and capacity to understand the decision
• Risks such as fraud, undue influence, or reputational harm

3.3 Donor Guidelines

• Donations from individuals under 18 will not be solicited for recurring commitments (e.g., direct debits)
• Donations must align with our values and not compromise our independence or public benefit obligations

4. Cryptoasset Donations

We recognise the evolving nature of digital assets and their potential as a means of supporting our work. However, cryptoasset donations are inherently associated with unique risks and complexities. We will assess all cryptoasset donations based on opportunities, benefits, and compliance requirements, ensuring adherence to relevant UK laws and regulations.

4.1 Assessment and Acceptance Criteria

1. Expertise and Decision-Making
   • Donations of crypto assets will only be accepted if the CIC has or can source relevant expertise to manage and assess the risks involved
   • A specialist team or advisor may be engaged to ensure the proper handling and compliance of crypto asset donations
2. Risk Analysis
   • We will evaluate the legal, reputational, and financial risks associated with each cryptoasset donation. Factors considered include:
     • The source of the donation and potential links to illicit activities (e.g., fraud, money laundering, or sanctions violations)
     • The volatility and liquidity of the asset
     • Environmental impacts of specific crypto-asset technologies (e.g., proof-of-work cryptocurrencies)
3. Valuation and Conversion
   • Upon acceptance, crypto-assets will be promptly valued and converted into fiat currency unless there is a compelling reason to hold the asset
   • Conversion will be carried out through reputable, regulated exchanges to minimise risks

4.2 Risk Management and Controls

1. Compliance and Due Diligence
   • Cryptoasset donations will be subject to enhanced due diligence, including blockchain analysis to trace the origin of funds.
   • Transactions will comply with anti-money laundering (AML) and counter-terrorist financing (CTF) regulations
2. Policy on Anonymity
   • We will not accept crypto asset donations from anonymous sources unless the donor’s identity can be verified through an intermediary or blockchain analysis
3. Environmental Considerations
   • Preference will be given to accepting donations in lower-energy cryptocurrencies, where feasible, to align with our commitment to sustainability

4.3 Ongoing Management

1. Financial and Operational Controls
   • Trustees will ensure appropriate controls are in place to safeguard crypto asset donations, including secure digital wallets and monitoring for fraud
   • Policies and procedures for accepting, holding, or converting cryptoassets will be reviewed annually.
2. Reporting and Transparency
   • All crypto asset donations will be recorded and reported transparently in financial statements, including the date of receipt, valuation, and conversion details.
   • Material donations will be disclosed in the annual report, with explanations of how risks were assessed and managed.

4.4 Conditions for Rejection
Cryptoasset donations will not be accepted if:

• The source or purpose conflicts with our values or regulatory obligations
• Due diligence raises concerns that cannot be mitigated
• The donation introduces unacceptable financial, operational, or reputational risks

5. Anonymous Donations

• Anonymous donations through collection tins or online platforms are acceptable, provided adequate safeguards are in place
• Trustees will assess anonymous donations for suspicious circumstances, particularly for significant sums, cash donations, or overseas sources

5.1 Reporting Thresholds

• Anonymous donations exceeding £25,000 will be reported to the Community Interest Regulator, unless received from a trusted third party, such as a solicitor handling a legacy donation

5.2 Low-Value Anonymous Donations

• Patterns of small, cumulative anonymous donations will be monitored for unusual activity. Safeguards and reporting processes will be applied as necessary

6. Refusal of Donations

We reserve the right to refuse any donation that does not align with our values, poses risks to our organisation or beneficiaries, or violates legal or ethical standards. This policy ensures that all donations accepted serve the best interests of Think Creatively and its mission.

6.1 Grounds for Refusal

Donations will be refused if:

1. Conflicts with Values
   • The donor’s views, activities, or business practices are inconsistent with our values, mission, or ethical principles
   • The donation could harm the public’s perception of our independence or impartiality
2. Legal or Compliance Risks
   • The donation may involve illegal activity, including money laundering, fraud, or tax evasion
   • The donation does not comply with applicable laws or regulatory guidelines
3. Conditions Undermining Independence
   • The donor imposes conditions that could compromise our decision-making, governance, or operational independence
   • The conditions attached would make it impossible to fulfil our public benefit obligations
4. Reputational or Operational Risk
   • Accepting the donation could damage the organisation’s reputation or its ability to attract future funding
   • The donation requires resources to accept or implement that outweigh its financial value

6.2 Risk Assessment and Decision Process

All high-risk donations will undergo a thorough evaluation:

1. Screening Criteria
   • The donor’s background, source of funds, and any conditions attached will be assessed
   • Any potential conflicts of interest will be identified and addressed
2. Consultation
   • Trustees and relevant stakeholders will be consulted on donations involving significant risk or complexity
   • Legal and compliance experts will be engaged where necessary
3. Transparent Decision-Making
   • Decisions to refuse donations will be documented, including the reasons for refusal and steps taken to mitigate risks
   • The decision-making process will ensure consistency, fairness, and adherence to organisational policies

6.3 Communication with Donors

1. Clear Explanation
   • Where a donation is refused, the donor will be informed politely and clearly of the decision and the reasons behind it, where appropriate
   • An explanation will be provided in a way that maintains positive relationships where feasible
2. Alternative Solutions
   • If possible, the donor will be offered alternative ways to support our mission, such as volunteering or unrestricted donations

6.4 Proactive Measures

1. Donor Screening and Engagement
   • Proactive due diligence will be conducted on donors, particularly for large or unusual contributions, to reduce the risk of refusal
   • A Donor Code of Conduct will be shared with all major donors to ensure alignment with our values and expectations
2. Training and Awareness
   • Staff and trustees will receive training on the refusal process, ensuring consistent application of this policy
   • Training will include how to sensitively manage donor relationships in refusal situations

6.5 Monitoring and Review

• Instances of donation refusal will be reviewed periodically to identify patterns and update risk management strategies
• Refusal decisions involving substantial risks or complexities will be included in the annual report to enhance transparency

6.6 Reporting Suspicious Donations

• Any donations refused due to suspected illegal activities will be reported to the appropriate authorities, including HMRC or the Community Interest Regulator

7. Donor Recognition and Private Benefit

Donor recognition is limited to standard acknowledgements. Private benefits to donors must be incidental and not commercial in nature.

7.1 Commercial Donations

We welcome donations from businesses but will not accept contributions primarily aimed at enhancing their market image if this conflicts with our values or activities.

8. Serious Incident Reporting

We are committed to promptly identifying, addressing, and reporting serious incidents related to donations to ensure compliance with legal and regulatory requirements and to protect the integrity of the organisation.

8.1 Definition of a Serious Incident
A serious incident related to donations is any situation where there is:

• Reasonable suspicion of criminal activity (e.g., fraud, money laundering, tax evasion)
• A significant anonymous donation that raises concerns about the donor’s identity or source
• Evidence that accepting or refusing a donation could cause substantial harm to the organisation’s reputation, beneficiaries, or public trust
• A donation tied to conditions or activities that conflict with our values or legal obligations

8.2 Reporting Obligations

1. Internal Reporting
   • Trustees and staff must immediately escalate concerns about potential serious incidents to the designated compliance officer or trustee
   • An internal investigation will be initiated to assess the incident’s nature, risks, and potential outcomes
2. External Reporting
   • Where a serious incident is confirmed, it will be reported to:
     • The Community Interest Regulator
     • Relevant authorities, such as the Charity Commission, HMRC, or law enforcement, as required
   • Reports will include:
     • A clear description of the incident
     • Steps taken to investigate and mitigate risks
     • Justification for accepting or rejecting the donation
     • Measures implemented to prevent recurrence

8.3 Criteria for Reporting Anonymous Donations

1. Low-Value Donations
   • Patterns of suspicious small anonymous donations will be monitored and reported if they suggest potential money laundering or other illegal activities
2. High-Value Donations
   • Anonymous donations exceeding £25,000 will be reported unless the source is verified through trusted intermediaries (e.g., solicitors handling legacy donations).

8.4 Proactive Risk Mitigation

1. Training and Awareness
   • All trustees and relevant staff will receive training on recognising serious incidents, including red flags for fraud, money laundering, and other criminal activities
2. Safeguarding Processes
   • Procedures will be established to screen high-risk donations proactively, reducing the likelihood of serious incidents arising
3. Ongoing Monitoring
   • Accepted donations, particularly those from higher-risk sources (e.g., overseas or anonymous), will be monitored for emerging risks or legal concerns

8.5 Transparency and Accountability

1. Recordkeeping
   • Comprehensive records of investigations, decisions, and reports will be maintained to demonstrate compliance and accountability
2. Annual Reporting
   • A summary of serious incidents, actions taken, and improvements implemented will be included in the annual report where appropriate, ensuring transparency to stakeholders

8.6 Continuous Improvement

1. Policy Review
   • Lessons learned from serious incidents will be used to refine donation acceptance policies and risk management procedures
2. Feedback Mechanisms
   • Staff and trustees will be encouraged to provide feedback on the effectiveness of reporting processes to support ongoing improvement

9. Implementation and Training

• All trustees and relevant staff will receive periodic training on donation management, recognising vulnerabilities, and compliance with regulations

10. Regular Policy Review

This policy will be reviewed annually or after any significant incident to ensure its relevance and effectiveness.

The Think Creatively will provide acknowledgments to donors meeting tax requirements for property received by the charity as a gift. However, except for gifts of cash and publicly traded securities, no value shall be ascribed to any receipt or other form of substantiation of a gift received by Think Creatively.

The Think Creatively will respect the intent of the donor relating to gifts for restricted purposes and those relating to the desire to remain anonymous. With respect to anonymous gifts, the Think Creatively will restrict information about the donor to only those staff members with a need to know.

The Think Creatively will not compensate, whether through commissions, finders’ fees, or other means, any third party for directing a gift or a donor to the Think Creatively.