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Disaster appeal guidance discourages launching new charities

Governance | Niki May Young | 14 Aug 2012

The most effective way to help in the wake of a disaster is to support existing charities, advises the Charity Commission in a new guide to disaster relief appeals.

In the publication, launched today, the Commission advises that "often the best way to help in the aftermath of a disaster is to give money, time or skills to existing charities which already have systems in place".

The Charity Commission worked with the Disasters Emergency Committee to write the guide on disaster relief appeals which outlines how individuals can help after a disaster, how to plan a disaster appeal and how to avoid fraud, among its comprehensive advice. The Commission hopes the guidance will build confidence within the public as to where there donations are going and how they are being used, in a bid to encourage donations.

Kathryn Hindley, deputy chief executive of the DEC advised why the guidance was now necessary:

"The increased prevalence of the internet and social media over the last decade has made disasters more visible and we have seen an increased desire in people wanting to help. This makes the proper administration of disaster relief appeals of fundamental importance, to ensure money donated is being used where it is intended.

"The new guidance should help make this process clear so that resources can be more focused on disaster relief," she said.

The Commission advises those planning to raise charitable funds without having a specific charity in mind will in effect be starting their own charity, acting as a trustee. It adds that they should therefore be aware of the responsibilities setting up your own charity holds, such as establishing a charitable purpose and meeting the public benefit requirement. And it reiterates that "before starting a new charity, we recommend that you research the charities that already carry out the same work as you are interested in".

"A charity comes with responsibilities, particularly for its trustees, so starting a new charity needs careful thought and proper advice beforehand. You must make sure that an appropriate legal structure is put in place and that your charity meets its legal obligations in both fundraising and how funds are subsequently used and accounted for," the guidance continues.

It is possible to set up a non-charitable fund, the guidance adds, but this will not benefit from the same tax reliefs and may not attract the same level of support as charitable funds. It is a criminal offence to say that you are collecting for a charity when you are not, the Commission warns.

Collaboration in disaster relief

The publication of the Commission's guidance today strengthens action taken by the Department for International Development earlier this year to create a central unit of disaster responders, and that of the first official public-charity collaboration between emergency responders in the UK, launched in central Scotland last week.

DFID launched the natural disaster rapid response unit in March, comprised of 32 UK-based charities and businesses which would be given access to funding within 72 hours of a disaster striking. Organisations involved include the British Red Cross and Christian Aid as well as smaller organisations such as water-purifier Lifesaver Systems and solar-power specialists for the developing world ToughStuff.

In central Scotland a groundbreaking formal partnership between  the emergency services and voluntary groups was signed on 7 August, seeing them work closely together in preparation and response to major emergencies.

The Commission's new guidance also outlines advice on how to work effectively with other charities to support the cause. If your charity itself does not hold the relevant charitable aims to directly help in a disaster, it can still raise funds in partnership with one that does, with funding held in the custody of the disaster relief charity.

The guide offers best practice advise on running a successful appeal and communicating with the public. "If you are raising funds to make grants to individuals or organisations, you should let the public know who can apply for funds, what the application criteria set by the trustees are and how potential beneficiaries can apply," the guide advises. 

The full guide can be accessed by clicking here.

Directory: Charity Commission