Published fundraising cost allocation, fee disclosure, and solicitation statement policy
This criterion assesses whether the organization has developed and publicly disclosed a comprehensive policy serving three objectives: (1) Donor-facing transparency (raf‘ al-jahālah), (2) SORP-consistent accounting and cost allocation, and (3) legally compliant solicitation statements and third-party fundraiser controls. It evaluates the organization's commitment to ethical fundraising by openly communicating how costs are calculated, allocated, and reported. The policy defines ‘fundraising costs’ (direct, third‑party/agency fees, payment processing, platform fees), explains gross vs net recognition, and sets channel‑specific disclosure rules. It clarifies that ‘pricing’ refers to ticket/entry fees and suggested donation amounts, ensuring no hidden surcharges or coercive fee coverage options are applied.
- How does the organization calculate and allocate costs associated with its fundraising activities?
- Is there a formal, documented, and approved policy governing fundraising cost allocation and fee disclosure?
- Show the channel disclosure matrix and one compliant live example per channel.
- Provide an event example: ticket price, benefit valuation, Gift Aid eligibility statement, and VAT consideration.
- Provide one ‘100%’ or impact-claim substantiation pack and demonstrate qualifier prominence testing.
- Does the organization publicly report on its fundraising efficiency and explain its performance in relation to its policy?
- How are ‘100% donation/admin‑free’ claims substantiated, qualified, and monitored to avoid misleading audiences?
- Do you offer donors an option to cover processing fees, and how is this presented to avoid surcharges or pressure?
- How do you ensure channel‑specific disclosures (digital, SMS/tele, face‑to‑face, lotteries) meet legal/code requirements?
- The documented fundraising cost allocation and fee disclosure policy.
- Channel disclosure content matrix.
- Event benefit valuation/Gift Aid workings and VAT consideration note.
- Claim substantiation packs for any percentage/impact claims.
- Donor comprehension testing results (pre/post campaign) and resulting changes.
- Evidence of public disclosure (e.g., screenshot of the website page, copy of the annual report section).
- Minutes of meetings where the policy was approved or reviewed.
- Publicly available financial statements or reports showing the fundraising cost ratio and any accompanying narrative or explanation.
- Register of agreements with professional fundraisers/commercial participators (with fee/disclosure clauses).
- Sampling/audit reports of fundraising materials (with pass rate).
- Staff/agency training records on the policy.
| Level | Rating | Description |
|---|---|---|
| 5 | 5/5 | Public policy covering all channels; independent testing of claim prominence/comprehension; exception reporting to trustees; sampling audits ≥95% compliance; reconciles to SORP; public reporting of policy vs actual. |
| 4 | 4/5 | Public, multi‑channel policy including disclosure matrix; worked examples for Gift Aid/VAT on events; annual board review; public reporting of ratios. |
| 3 | 3/5 | Public but limited channels; internal disclosure matrix exists; claim substantiation checklist in place; partial reconciliation. |
| 2 | 2/5 | Internal or partial public; no sampling; unclear formulas; ad-hoc approach to event/ticket splits. |
| 1 | 1/5 | No cost allocation or fee disclosure policy for fundraising. |
Discussion (1)
📋 **Version updated: 1.0.0 → 2.9.7** **Changes:** Updated islamic_references from mizan-297.json
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