New Organisation/Group

As the country continues to cope during the COVID-19 pandemic, the services delivered by voluntary organisations and charities across Scotland’s third sector are providing a vital lifeline for the most vulnerable members of our communities. With defined objectives and robust governance policies and procedures in place, these organisations represent an experienced, organised response to the crisis. However, more and more communities are coming together to provide support for individuals at this time through establishing informal groups and networks. A number of these groups have formed throughout South Lanarkshire and are proving imperative to the wider relief response through their tireless, selfless efforts in ensuring that their communities have access to vital provisions and services.

Whatever the reason for setting up a community group or network to respond to the COVID-19 pandemic, there are some important points to consider before you do that will ensure your activities are legal, ethical and have the best chance of success. 

1) Make sure there is a need 

It is important that before you start your campaign or ask for or accept any donations, you can do the work that you get the money or goods to those you intend to. Working directly with an established organisation that delivers services in communities should ensure this can be done easily.

2) Be specific about what you are asking for

It’s important you make sure your ask has a clear purpose. You need to be specific about who you intend to help and how you are going to do it. It is a legal requirement that you use the donations you receive for the purpose you outlined in your ask. The more specific your appeal is, the more information the public or businesses will have to make a decision about whether to support it.

If you intend to use an online fundraising platform like PayPal, GoFundMe or Crowdfunder  to manage your appeal, you may be required to provide clear details on the purpose before you can begin fundraising, especially if you are not raising funds for a well-known charity or organisation. Avoid broad purposes like ‘supporting those affected by COVID-19’ and be more specific. For example, ‘raising funds to buy shopping for those self-isolating in the local area’.

3) Work with existing organisations and charities where you can.

You should consider working with existing charities or local community groups where possible. It is likely that these organisations are already set up and deliver the services you want to do. A charity may also be able to claim tax relief on donations if they are registered with HMRC’s Gift Aid tax reclamation scheme. Individuals raising funds do not have access to this scheme, so connecting to a charity directly could generate significantly more funds for your cause.

4) Don’t go it alone.

If you decide not to connect your work with an existing organisation, get a team of other people involved to help with decision making and so you do not burn out (for advice on managing volunteers, please see the Volunteer section of this guidance). By doing so, you can give potential donors reassurance that they are not just donating to one person. Having other people involved will allow you to  be transparent and have financial procedures in place that will encourage public trust. For instance, ensuring all expenditures are authorised by two people. 

5) Be transparent and gain trust.  

It is important that people trust you and your work as they may be wary of donating to a cause they have not supported before or donating to a person or private bank account rather than a charity. In order to build trust, be open about who you are and how any donations will be used. Make sure there is a way for potential donors and volunteers to contact you. You should be prepared to answer these questions honestly. It is important that people can make an informed decision  that is based on facts. 

6) Decide how long your group will run for.

COVID-19 has shown that local communities will come together in times of crisis. However, you may have also seen in this time that there is a need that is not being met in the community that your group can fill longer term. Establishing as a voluntary organisation or charity also means that certain legal implications and safeguards can be put in place for volunteers and community organisers. It may also mean that your group can receive external funding from trusts and foundations. As the Third Sector Interface (TSI) for South Lanarkshire, VASLan provides a range of support to help form, develop and grow organisations, including assistance with drafting a suitable governing document and adopting robust governance policies and practices. If you are interested in developing your efforts into a formal organisation, please see the Getting Started section of the VASLan Resource Kit or email office@vaslan.org.uk for support. Despite the current crisis, the Office of the Scottish Charity Regulator (OSCR) continues to accept applications for charitable status should you wish to register a charity and access the range of benefits available via charitable status. VASLan can support with all aspects of the application process.

7) Cash Handling

People are more likely to donate if they are able to use a familiar payment service. These will often have the added benefit of payment protection schemes that will protect the funds. We recommend using a well-known payment transfer systems. Avoid using your personal bank accounts wherever possible. Using a personal account can leave you open to suspicion that your fundraising is for personal gain. It may also have tax implications for you if it is unclear that the funds are not your personal income. To promote transparency, introduce written financial control procedures and keep accurate records of all incomes and expenditures along with accompanying receipts. Voluntary organisations formed under a governing document/constitution require all withdrawals from their bank account to be authorised by two of the designated signatories on the account. If using your own account, consider implementing a similar approach where prior to funds raised being spent, the amount and purpose of the expenditure is agreed by those leading the campaign. This ensures that no one person has sole control over how funds raised are spent, reduces opportunities for fraud and increases public trust in your efforts. If you are a volunteer handling cash, please refer to the Volunteer section 

8) Be clear about volunteer expenses from donations.

Nobody should be out of pocket as a result of volunteering. Volunteers can claim reasonable out of pocket expenses to cover costs of transport and food incurred whilst they are volunteering.  Be very clear that this is going to happen and what it is that they can claim for.  Write a simple volunteer expenses policy and make sure there is a system for volunteers to submit their claims and have them paid.  Where possible keep copies of receipts.  At the moment with concerns about cash handling and not necessarily being able to meet in person, where possible make this system accessible online.  Make it clear to donors that you will be paying your volunteers expenses before they make their donation. If you are not open about this from the outset, you risk running a fraudulent campaign which will have legal implications.

9) Make contingency plans.

Be clear about what will happen if you cannot use donations to meet the purpose that you are fundraising for (see point two 2) Be Specific). This could be because you raise more or less money than you need or because something has happened after donations were made, but before you are able pass them on to the cause. For example, you no longer need to raise money to buy food for people who are self-isolating. You need to tell donors before they make their donation how you will use any unused funds or resources. Usually this will be that you are going to pass it on to another group with the same needs or give the donations to a relevant charity. If you don’t have contingency plans in place you will need to contact every donor before you use their money for another purpose, otherwise you may be committing fraud. 

 

VASLan can provide help  Email: office@vaslan.org.uk Telephone: 01698 300390