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Ethical Fundraising Policy

Ethical Fundraising Policy

Last Updated: March 2026
Policy Owner: Director of Development & Marcoms

The Royal Hospital Chelsea – Ethical Fundraising Policy

1. Purpose

This policy sets out how The Royal Hospital Chelsea (RHC) conducts fundraising lawfully, ethically, and transparently, ensuring public trust and confidence while protecting donors, volunteers, beneficiaries, and staff.

2. Regulatory Compliance

RHC will:

  • Comply with the Fundraising Regulator Code of Practice 2025.
  • Follow guidance and professional standards from the Chartered Institute of Fundraising.
  • Comply with UK GDPR and the Data Protection Act 2018.
  • Maintain appropriate insurance, financial controls, and reporting procedures.
  • Ensure trustees retain ultimate responsibility for fundraising oversight, strategy, and risk.

3. Core Ethical Principles

All fundraising will be:

  • Legal – compliant with all applicable legislation and regulation.
  • Open and honest – transparent about purpose, impact, and use of funds.
  • Respectful – no undue pressure, harassment, or exploitation.
  • Accountable – overseen by trustees via the Finance & General Purposes Committee.
  • Proportionate and responsible – risks are assessed and managed, including financial, reputational, and operational risks.

4. Staff Training and Accountability

  • All fundraising staff and volunteers receive induction training on ethical fundraising, gift acceptance, data protection, safeguarding, and vulnerability awareness.
  • Regular refresher training ensures compliance with updates to the Fundraising Code, Charity Commission guidance, and data protection law.
  • Specialist training is provided for staff handling major gifts, legacies, non-cash/crypto donations, or sensitive supporter interactions.
  • Staff and volunteers acknowledge reading this policy annually, and training effectiveness is monitored.

5. Gift Acceptance and Assessment

  • Gifts must align with the charity’s purposes and values.
  • Due diligence is required for all gifts over £20,000, high-risk donations, or unusual gifts.
  • Gifts may be restricted (for a specific project) or unrestricted (for trustees’ discretion), with agreements and reporting recorded in the CRM and financial systems.
  • Gifts may be declined if:
    • Conditions compromise independence, governance, or reputation.
    • Acceptance would create disproportionate cost, liability, or operational risk.
    • The donor or source of funds is unethical or illegal.
  • Ethical screening is applied to major gifts, legacies, corporate partnerships, and non-cash donations and recorded in the CRM.
  • Non-cash or crypto gifts (property, stocks, in-kind, cryptocurrency) require valuation, legal checks, and trustee approval; volatile assets are converted to cash unless strategic holding is approved.
  • All accepted and refused gifts, conditions, and recognition agreements are recorded in the CRM.

6. Restricted and Unrestricted Funds

  • Restricted funds are used only for the agreed purpose; agreements and records are maintained.
  • Unrestricted funds are used at the trustees’ discretion to support the charity’s objectives.
  • Financial systems ensure segregation, proper reporting, and review of restricted funds.
  • If restrictions become impracticable, trustees follow Charity Commission guidance.

7. Fundraising Streams

7.1 Trusts and Foundations

  • Applications are truthful and evidence-based; funds are used per grant conditions.
  • Reporting requirements are met in full and on time.

7.2 Individual Giving

  • Communications are clear, accurate, and easy to opt out of.
  • Donors may choose their preferred contact methods.

7.3 Legacies

  • Marketing is sensitive, never exploiting vulnerability or bereavement.
  • Executors are treated professionally, and legal advice is signposted, not provided.

7.4 Prize-Led Fundraising

  • Complies with gambling and licensing law.
  • Terms, odds, and prize details are transparent, with vulnerable individuals protected.

7.5 Major Donors and Philanthropy

  • Due diligence and ethical screening are conducted.
  • Naming rights and recognition are formally agreed in writing and recorded.
  • Donors cannot exert improper influence over governance or operations.

7.6 Corporate Partnerships

  • Partnerships align with mission and values.
  • Written agreements clarify roles, branding, and financial arrangements.
  • Reputational and ethical risks are assessed before entering agreements.

7.7 Community Fundraising

  • Public collections/events comply with licensing, insurance, and local regulations.
  • Volunteers are trained on health & safety, safeguarding, GDPR, and donor interaction standards.
  • Guidance is provided for sponsorship, online fundraising, and third-party events.
  • Funds are reported promptly, with receipts or acknowledgements provided.

7.8 Digital & Online Fundraising

  • Must comply with data protection, accessibility, and transparency standards.
  • Online platforms and crowdfunding are approved and monitored.

8. Data Protection and CRM Use

  • Personal data is processed lawfully, fairly, and transparently, with a recorded lawful basis.
  • Consent is obtained where required and can be withdrawn easily.
  • The CRM is secure, access-controlled, and regularly reviewed.
  • Staff and volunteers receive data protection training.
  • Data is never sold or shared unlawfully, and retention schedules are applied.

9. Supporter Care

  • Communications are clear, accessible, and timely.
  • Preferences are respected, including withdrawal of consent.
  • Extra care is taken with potentially vulnerable individuals.
  • Persistent approaches cease if a donor indicates discomfort.
  • Safeguarding concerns are escalated per internal procedures.

10. Financial Controls and Transparency

  • Income is recorded promptly and accurately.
  • Segregation of duties is maintained where possible.
  • Trustees receive regular financial reports.
  • Annual accounts clearly report fundraising income and expenditure.

11. Complaints

  • Complaints are acknowledged, investigated, and logged.
  • Dissatisfied complainants may escalate to the Fundraising Regulator.
  • Findings are reviewed by trustees and used to improve practice

12. Monitoring and Review

  • This policy is reviewed every two years or sooner if regulation changes.
  • Staff and volunteers receive ongoing training on ethical fundraising standards.

Signed: Director of Development & Marcoms
April 2026