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Note: MUST* and MUST NOT* (with asterisk) denotes legal requirement

MUST and MUST NOT (without asterisk) denotes requirement of the Code of Fundraising Practice

10.1 Legal References in this Section

General charity law principles

10.2 Introduction

“Trust Fundraising” refers to the process of asking for support from trusts and foundations that make grants for charitable/philanthropic purposes.

“Foundation” is, for the purposes of this Code, synonymous with ‘Trust’.

a) This Code covers all forms of Trust Fundraising, but when applying for statutory funding, such as EU, UK government or local authority grants, there may be additional rules and these MUST be followed in conjunction with this code.

10.3 Preparation and Procedures

a) Mass mailings and cold calling to trusts MUST generally be avoided, except under exceptional circumstances, for example a national disaster or emergency.

b) Organisations MUST obtain permission of referees before submitting applications, with the referee seeing the application before submission.

10.4 The Application

a) All applications MUST* fit within the applicant organisation’s own objectives.

10.4.1 After Applications Have Been Accepted/ Rejected

a) Administrative requirements of the trust regarding payment MUST be strictly adhered to (the standard will depend on terms and conditions of the application) and MUST* be followed where they form conditions under a contract.

b) Any conditions attached to the grants, such as the trust having management, advisory or other inputs into the work, or requirements for public acknowledgement of the trust’s support, MUST be understood and agreed to by both parties before the grants are formally accepted.

c) When applications are rejected, appeals or attempts to persuade trusts to reconsider MUST only be made in rare circumstances – such as where there are clear mistakes of fact, or trusts have specified appeal procedures.

10.5 Reporting and Accounting

10.5.1 Reporting

a) If changes are being planned about how grants may be spent which differ from what was originally proposed, the trust’s approval MUST* first be obtained in writing if that is a requirement of the trust’s funding.

b) All reporting guidelines and requirements MUST be closely followed and MUST* be followed where they form conditions under a grant contract.

c) If there are potentially serious problems with the funded work (for example, the likelihood of significant delays to timetables or real risk of failure to complete), trusts MUST be informed as early as possible, and kept informed as matters develop and any notification requirements in the contract MUST* be followed.

10.5.2 Accounting

a) All legal accounting requirements MUST* be followed, and the Statement of Recommended Practice (SORP) MUST* be followed.

b) When appeals for specific projects are so successful that not all money can be allocated to them, or projects do not go ahead organisations MUST obtain Charity Commission / OSCR advice regarding the use or return of remaining funds.

There is more information about trusts and grant fundraising in the Institute of Fundraising’s Grant Making Trusts guidance.