Posted: 21 / 05 / 2024

In an interesting case recently, a Bedford foodbank has been referred to the Charity Commission over its refusal to accept vouchers as a donation. Citing ‘logistical challenges’ the charity rejected the vouchers as proceeds from a local Dr Who convention that annually raises money for charities in the area.

The Commission has confirmed that it is now investigating the decision, as it does with many cases, but what is unusual here is the level of mainstream press attention it has attracted. This could be because of the great Dr Who graphics that can be attached to a relatively dry charity governance article (case in point – this article), or it could be because the refusal of a food bank to accept food vouchers, on the face if it, can seem shocking.

Anyone who regularly works with or for charities will probably know that it may not be as clear-cut as the clickbait headlines might suggest, though, so we’re not jumping to conclusions.

What are the rules though? 

According to Charity Commission guidance, charitable donations include ‘money, land, goods, or other property of any kind freely given to your charity’.

Currently, the Commission’s broader strategy is to increase philanthropic giving across England and Wales and recently updated guidance underlines the message that the default position of charities should be to accept donations and refuse only by exception. As explained by Charity Commission Chair, Orlando Fraser, the guidance is ‘that their starting point should be to accept unless there is a very good reason not to’. 

So, what counts as a good reason not to? Under the guidance, trustees are obliged to refuse donations that:

  • Come from an illegal source or with an illegal condition attached.
  • Are donated by an individual lacking either the mental capacity to consent to the donation or legal right to make the donation.
  • Fall outside of the charity’s purposes.
  • Pose an operational risk to the charity, e.g. create a destabilising financial obligation in themselves, such as rent on a land donation.
  • Pose a reputational risk to the charity, e.g. compromises the charity’s political neutrality.

Having discussed this particular case with Emma Houghton who heads up our Charity Team here at Sedulo, we agreed that if one of our clients asked for our advice in a situation like this, we would strongly caution them against refusing. In line with the guidance, charities should be doing as much as they lawfully can to accept anything that supports their founding objectives and it’s not at all clear why the donation of vouchers here would fall outside of this directive.   

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