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.
| Metric | Policy Availability & Compliance Index |
|---|---|
| Target | 100% coverage, >95% compliance |
| Frequency | Annual |
| Method | Composite: (1) Policy exists/public, (2) % of active channels with compliant disclosures, (3) % pass rate on sampling audit. |
| Unit | Percentage |
Level 1: Initial/Ad-hoc
Fundraising costs are managed on an ad-hoc basis with no defined policy or standardized approach to calculation and allocation. No public disclosure; risk of inconsistent or misleading claims in appeals.
Level 2: Developing
An informal or unwritten understanding exists for allocating fundraising costs, but it is applied inconsistently and is not formally documented or approved.
Level 3: Established
A formal, documented internal policy aligned to SORP with defined formulas and channel‑specific rules; internal disclosure matrix and claim substantiation checklist in place.
Level 4: Advanced
Publicly disclosed, WCAG-compliant, plain-English policy with reconciliation to SORP categories; public disclosure matrix and worked examples for Gift Aid/VAT on events.
Level 5: Optimizing
Independent/internal audit sampling with ≥95% compliance; stakeholder feedback incorporated; learning loop evidenced in annual update; exception reporting to trustees.
Organisation Types
By Organisation Size
| Size | Applicability | Notes |
|---|---|---|
| Micro | exempt | Complex multi-channel fundraising policies, solicitation statements, and VAT/Gift Aid matrices are disproportionate for this size. |
| Small | exempt | Formal published matrices and solicitation statements are disproportionate; rarely use professional fundraisers or complex channels like F2F/SMS. |
| Medium | partial | Requires basic fee disclosure and event Gift Aid/benefit split rules, but a full multi-channel matrix (e.g., F2F/SMS/Lotteries) may not apply if those channels are unused. |
| Large | full | |
| Major | full |
Applicable When
- The organization actively engages in fundraising activities.
- The organization receives donations or grants.
- The organization solicits funds from the public for its activities.
Not Applicable When
- The organization is entirely self-funded and does not solicit external donations.
- The organization does not conduct any fundraising activities.
Discussion (1)
📋 **Version updated: 1.0.0 → 2.9.7** **Changes:** Updated islamic_references from mizan-297.json
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