An important source of finance will continue to be gifts from individuals, groups and supporting organisations. The Board also recognises the importance of its active involvement in fund-raising through appeals, lotteries, activities, and events.
In choosing a method of fund-raising, the Board of Directors will be alert and sensitive to public opinion and criticism. The Board of Directors will ensure that fund-raising methods meet with general approval and do not damage its good reputation, nor reduce public confidence in Congresbury Community Transport.
Individual donors of more than £10, who are income tax payers, will be encouraged to sign “gift aid” forms so that the donation is increased by the proportion of income tax.
User groups and supporting organisations while encouraged to organise fund-raising activities, must not be made to feel obliged to do this.
The Board of Directors will ensure that the purpose of the appeal is clearly stated. When the fund-raising appeal is for a specific item or project, it is important that documentation states how any unspent donations will be used. This will enable directors to deal with donations that exceed the appeal target, and situations when the appeal fails to reach the required amount. Where possible an end date should be set for fund-raising appeals. In the case of an appeal for general funds, it is important that any specific example given for the use of funds does not mislead donors into thinking that donations will only be used for that specific purpose.
Fund-raising in streets and public places, through requesting donations or the sale of goods, requires a permit or licence from the Local Authority. This includes all house-to-house and public house collections. North Somerset Council will be contacted for guidance well in advance. Fund-raising on private property requires the permission of the owners.
The law recognises two types of lottery, small lotteries and society lotteries. Each has its own specific regulations under the Lotteries and Amusements Act 1976, as amended by the National Lotteries etc. Act 1993. (Charity Commission booklet CC20 gives details). CCT will abide by all new regulations in this respect.
Employment of Professional and Commercial Fund-Raisers
CCT may decide to employ a professional fund-raiser or enter into a promotion with a commercial organisation. Such matters come under the provision of Part II of the Charities Act 1992 and The Charitable Institutions (Fund-Raising) Regulations 1994 (SI 1994/3024). CCT will abide by all new regulations in this respect.
Use of Assets for Fund-Raising Events
The charity’s assets will always be used with care and should not be used to fund events where there is a risk of substantial loss. In practice it is recommended by the Charity Commission that the projected turnover of any event should be no more than 25% of annual income.
Fund-Raising and Tax
There are special rules concerning charities and tax exemption. Since April 2000 charities do not have to deal separately with the Inland Revenue and Customs & Excise. If an event meets the criteria for VAT exemption, then it will automatically qualify for exemption from Income Tax and Corporation Tax. A list of events having exemption is given in CC20, page 19. The National Advice Service of Customs & Excise (0845 010 9000) should be contacted in advance to confirm exemption. CCT will abide by all new regulations in this respect.
Guidance in respect of charitable fund raising is given by the Charity Commission.