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TS-FS-05 Trust & Stewardship Financial Stewardship CORE Compliance v2.9.7

Fundraising costs fairly reported

This criterion assesses whether the organization transparently and accurately reports the costs associated with its fundraising activities. Fair reporting of fundraising costs is essential for donor trust, regulatory compliance, and effective resource management. It specifically requires avoiding selective netting or exclusions that create a misleading impression that fundraising is ‘free’ or that all donations reach beneficiaries without explaining how fundraising and core operations are funded.

Assessment Questions
  1. Does the organization have a documented policy defining 'fundraising costs', 'voluntary income', and the specific bases for allocating support/governance costs?
  2. For joint materials (e.g., newsletters), what SORP-compliant test is used to classify costs, and is this supported by evidence (e.g., content analysis)?
  3. Do the SoFA notes explicitly disclose the apportionment bases for support costs and provide comparative prior-year figures?
  4. Is there a reconciliation from the general ledger to the SoFA 'expenditure on raising funds' line, reviewed by the Finance/Audit Committee?
  5. Do agreements with professional fundraisers specify GDPR roles, fee structures, and statutory solicitation statements? Are these monitored quarterly?
  6. Are fundraising ratios reported with a clear separation of acquisition vs. stewardship costs and disclosure of material one-offs (e.g., legacies)?
  7. Does the Trustees’ Annual Report narrative explain how fundraising investment supports the delivery of public benefit/impact?
  8. Are any '100% to the cause' claims substantiated by a sustainable, separate funding source for overheads, with clear explanation to donors?
  9. Has the organization obtained any independent assurance (beyond standard audit) over its fundraising cost allocation and KPI reporting?
Evidence Requirements
  • Annual Fundraising Cost Allocation Pack: GL mapping, support cost pools/bases, staff time summaries, and joint-cost calculations.
  • Cost allocation policy including definitions of inclusions/exclusions.
  • Reconciliation working papers from GL to SoFA with sign-off by Finance Manager/Committee.
  • Published Annual Report with detailed notes on expenditure allocation and statutory fundraising statement.
  • Written agreements with professional fundraisers (checking for GDPR clauses, fee disclosure, statutory statements).
  • Board/Committee minutes showing review of fundraising efficiency against approved tolerances.
  • Sample of donor communications (checking for substantiation of '100%' claims).
  • Independent assurance report (e.g., AUP report) on fundraising KPIs (for Level 5).
Scoring Guidelines
LevelRatingDescription
5 5/5 Comprehensive reporting with independent assurance (e.g., ISRS 4400 or external audit) over allocation controls and KPIs.
4 4/5 Clear reporting with trustee-approved targets/tolerances and full statutory compliance.
3 3/5 Basic reporting meeting minimum statutory requirements but lacking depth or consistent channel analysis.
2 2/5 Minimal reporting with significant omissions, unclear methodology, or lack of reconciliation.
1 1/5 No meaningful reporting or deliberately misleading presentation.

Related Criteria

TS-FS-01 Trustees review management accounts TS-FS-02 Banking, procurement & AML controls TS-FS-03 Robust accounting system TS-FS-04 Segregate and control Zakat vs Sadaqah (ledgers, banking, donor intent) TS-FS-06 Statutory accounts externally audited/examined with clean outcome and filed on time (all applicable regulators)
Version
2.9.7 2025-11-05

Discussion (1)

Administrator 2026-03-07 11:07:47.591551

📋 **Version updated: 1.0.0 → 2.9.7** **Changes:** Updated islamic_references from mizan-297.json

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