A fundraising campaign should be transparent in its appeal because transparency directly affects trust and credibility and protects reputation. A vague or unclear appeal can raise doubts. Donors may feel misled or deceived while future donations may decline. Transparent appeals also help ensure compliance with regulations and uphold ethical standards.
While we appreciate that donors may support a family broadly and may personally be comfortable with funds being used for a different purpose, the charity is legally and ethically required to administer charitable funds in accordance with the purpose for which they were raised.
Fundraising appeals must be clear, transparent and accurate so that donors understand what their donations will be used for at the point they make their gift. The charity cannot simply assume that all donors would have donated had a different purpose been stated, nor can it retrospectively change the purpose of an appeal based on assumptions about donor intentions.
As trustees, we have a duty to ensure that funds are applied only to the purposes that were communicated to donors. This protects donors, beneficiaries, and the charity itself, and ensures that all families are treated consistently and fairly.
For that reason, funds raised for a specific item, adaptation, therapy programme, or other stated objective can only be used for that purpose.
Our approach is not a reflection of whether a proposed item is worthwhile or whether donors would support it; it is about ensuring transparency, maintaining public trust, and complying with the charity’s obligations when administering charitable funds.
If donors gave money for a specific campaign or purpose and the charity uses them outside that purpose:
- It may be a breach of trust
- It can violate charity law
- Trustees could face regulatory action
- The charity may have to repay or reallocate the funds properly
- It could trigger investigation by regulators
- the Charity Commissions can investigate misuse funds
Worst-case scenario
If funds are knowingly diverted:
- It could be considered fraud
- trustees could face personal liability
- The charity’s registration could be suspended or revoked
