Welcome to the Not-forProfit and Charity newsletter – May 2018.
It has been a challenging start to the year for charities with a number of high-profile scandals coming to the fore.
The President’s Club scandal posed a dilemma for charities in terms of whether they should return the ‘tainted’ donations they inadvertently accepted. Indeed, a YouGov survey said that one in five people thought charities should return the President Club donations, and two-thirds said they should keep the money.
The remaining 13% were unsure, but how easy is it in reality for a charity to give the money back? In the wake of this scandal, the Charity Commission issued ‘Advice to charities that have received donations from the President’s Club Charitable Trust.’ They said:
“Depending on the terms of the donations and how the funds were raised, there may be restrictions on whether a donation can be returned and the Commission may need to authorise such returns. Charities should seek the Commission’s
advice about whether our authorisation is required in their specific case. Trustees may wish to seek their own legal advice. The Commission does not expect trustees to return funds raised for charitable purposes in these circumstances but understands if they wish to consider doing so.”