Charitable Funds Who Should Read This Policy Target Audience All Clinical/Non Clinical Staff Version 1.0 April 2017
Ref. Contents Page 1.0 Introduction 4 2.0 Purpose 4 3.0 Objectives 4 4.0 Process 4 4.1 Income/Gifts/Donations 4 4.2 Expenditure 5 4.3 Written Gift Aid 6 5.0 Procedures connected to this Policy 6 6.0 Links to Relevant Legislation 6 6.1 Links to Relevant National Standards 7 6.2 Links to other Key Policies 7 7.0 Roles and Responsibilities for this Policy 8 8.0 Training 10 9.0 Equality Impact Assessment 10 10.0 Data Protection and Freedom of Information 10 11.0 Monitoring this Policy is working in Practice 11 Appendices 1.0 Receipt of Donation 12 2.0 Acknowledgment Letter 13 3.0 Receipt of Donation 14 4.0 Expenditure Request Form 14 Version 1.0 April 2017 2
Explanation of terms used in this policy Procedural Documents - the collective term for policies, procedures or guidelines Policy - sets out the aims and principles under which services, divisions, or units will operate. A policy outlines roles and responsibilities, defines the scope of the subject covered, and provides a high level description of the controls that must be in place to ensure compliance Charity Commission - register and regulate charities in England and Wales, to ensure that the public can support charities with confidence Donation- A donation is a gift given by physical or legal persons, typically for charitable purposes and/or to benefit a cause. A donation may take various forms, including cash offering, services, new or used goods including clothing, toys, food, and vehicles Donor - A donor in general is a person, organization or government who donates something voluntarily Donee A person who receives a gift My Donate My Donate is the online platform used by BCPFT Corporate Trustee - If an NHS body holds charitable funds as sole corporate trustee the board members of that body are jointly responsible for the management of those charitable funds. Members of both the Trust Board and Charitable Funds Committee are not individual trustees under charity law but act as agents on behalf of the corporate trustee Version 1.0 April 2017
1.0 Introduction The Charitable Funds are registered with the Charity Commission (registration number 1060039) as Black Country Partnership NHS Foundation Trust. This is an umbrella fund i.e. one registration covers and regulates all sub funds (e.g. Bache Ward Trust Funds, Heath Lane Trust Funds etc.). The purpose of the charity is to apply income, and at the Trustee s discretion, so far as may be permissible, the capital for any charitable purpose or purposes relating to the National Health Service wholly or mainly for the service provided by Black Country Partnership NHS Foundation Trust. 2.0 Purpose The purpose of this policy is to help all those involved in Black Country Partnership NHS Foundation Trust ( the Charity ) affairs to understand the rules and procedures that they should follow in order that the Corporate Trustee, Black Country Partnership NHS Foundation Trust, meets its legal obligations. 3.0 Objectives The objective of the Charity is to ensure the following principles are achieved: Principle 1 There must be identifiable benefit or benefits Principle 2 Benefit must be to the public, or a section of the public 4.0 Process A donation is a gift given by physical or legal persons, typically for charitable purposes and / or to benefit a cause. A donation may take various forms, including cash, services, new or used goods including clothing, toys, food, vehicles, it also may consist of emergency relief or humanitarian aid items, development aid support, and can also relate to medical care needs e.g. blood or organs for transplant. Charitable gifts of goods or services are also called gifts in kind. The general rule for a donation to be considered charitable is that: The donor must not expect to receive any benefit from providing the donation; The donation should not be generated by NHS resources; and The donation must be made to further the objects of the charity. There are five main types of donations to the Charity: 1. General donations (cheque, cash, bank transfer or via My Donate); 2. Fundraising; 3. Legacies; 4. Investment income and interest; and 5. Grants. 4.1 Income/Gifts/Donations Income (e.g. donations) can be received by either Edward Street, Hallam Street, Penn or Heath Lane cashiers and must be recorded on electronic cash sheets (ecash sheets). The detail on the cash sheets must include the account to receive the credit. A receipt of donation form should be completed (see Appendix 1). When a donation has been received from an external source, the receipt of donation must be completed and forwarded to the appropriate fund manager who will then send an acknowledgment letter to the donor (see Appendix 2). A copy of the receipt must then be forwarded to finance. Version 1.0 April 2017 4
Finance will periodically input details of all donations onto the charitable fund ledger, which is kept within the Integra financial system. On some occasions income is received through exchequer funds and credited to the Trust Funds Control Account (9ABSA3A30695). The control account must therefore be examined at the end of each month to ensure all income is transferred into the Charity bank accounts and credited to the relevant trust fund. It is important that gifts of cash and goods provide benefit to the Trust and the wishes of the donors are fully met. Managers must be aware that it is a legal requirement, under the Charities Act, for gifts to be used solely for the purpose for which they were given. Gifts and donations should therefore not be accepted under conditions, which would make them too restrictive. Additionally fund managers should not accept gifts and donations with recurrent cost implications (e.g. a piece of medical equipment which has a maintenance contract attached requiring recurrent funding from exchequer budgets). Non-financial donations must be identified on the Receipt of Donation (Appendix 1), and recorded appropriately on the internal financial system. 4.2 Expenditure Expenditure from trust funds should be, in general, on those items which aid the relief of sickness in patients which would not otherwise be purchased from exchequer funds. The expenditure must benefit all patients or groups of patients in general and not just individuals. The process to expend charitable trust funds is: 1. Submission of a trust fund request form authorised by the fund manager to Finance. 2. The Finance department will check that the request has been authorised by the appropriate fund manager. 3. Funds will be drawn in accordance with the fund request either by way of a cheque, purchase cards or petty cash. In some cases we would directly pay invoices via the bank. If a cheque is drawn it will be forwarded to the requester together with a Cash Schedule of Trust Fund Expenditure. This should be completed when the requested funds have been spent. 4. All receipts should be attached and any unspent funds should be re-banked on a trust fund cash sheet with general office cashiers at Edward Street, Hallam Street, Penn or Heath Lane. 5. The expenditure net of any re-bank will be applied to the relevant fund by finance using the Excel spread sheet system. 6. If expenditure is to be applied using purchase cards or petty cash then prior authorisation will have to be obtained (see below exceptions to request for Trust Fund expenditure ). 7. Having checked the authorisation, Finance will check the available fund s balance and if sufficient funds are available, certify the request to that effect. 8. If receipts are not received by Finance for expenditure the relevant fund managers will be notified by Finance and where there are persistent breaches Version 1.0 April 2017 5
Finance will inform line managers to ensure the matter is resolved. Finance will maintain an up-to-date list of approved sub fund manager s together with their specimen signatures. 4.3 Written Gift Aid The written gift aid scheme enables the Charity to claim back the income tax paid to the HM Revenue and Customs by the donor on their donation. Gift aiding a donation increases the value of each donation by 28% (25% from April 2011) and, in the case of donors who pay a higher rate of tax, creates an added personal benefit for them. The written gift aid scheme only applies to an individual who pays tax in the UK remember this does include retired people. The distribution and collection of the gift aid form is co-ordinated by the Finance Department. 5.0 Procedures connected to this Policy There are currently no standard operating procedures connected to this policy. 6.0 Links to Relevant Legislation The Charities Acts 1992, 1993, 2006 ( the Charities Acts ) The Trustee have an obligation to comply with the provisions of the Charities Acts. Some of the key provisions are as follows: Administration requirements Under section 5 Charities Act 1993 every registered charity with an income of 5,000 or more in its last financial year has to state on all notices, advertisements, documents soliciting money or property for the benefit of the charity, on cheques, bills invoices and receipts, the fact that it is a charity. The purpose of this is to let people know that they are dealing with a charity and not with a commercial undertaking or a private individual. As the name of the Charity is currently Black Country Partnership NHS Foundation Trust Charitable Fund, this is the name which needs to be stated. Dealings with land Sections 36-39 Charities Act 1993 imposes constraints on the disposal of charity land. The important point for the Trustee to bear in mind is that if they are considering disposing of land, they must instruct a solicitor to advise them on compliance with the relevant provisions of the Charities Acts and may need a surveyor to prepare a report for them in the statutory terms before they start marketing the property. Fundraising Specific requirements are set out in the Charities Act 1992, Charities Act 2006 and in other Regulations relating to public charitable collections and the use of fundraisers. NHS and Community Care Act 1990 The funds are held on Trust under paragraph 16c of Schedule 2 of the NHS and Community Care Act 1990. Funds Held on Trust are registered with the Charity Commission. Version 1.0 April 2017 6
6.1 Links to Relevant National Standards There are no relevant national standards. 6.2 Links to other Key Policies Trust Standing Financial Instructions The Standing Financial Instructions detail the financial responsibilities, policies and procedures adopted by the Trust. They are designed to ensure that the Trust's financial transactions are carried out in accordance with the law and with Government policy in order to achieve probity, accuracy, economy, efficiency and effectiveness. Version 1.0 April 2017 7
7.0 Roles and Responsibilities for this Policy Title Role Key Responsibilities Corporate Trustee Adherence - The Trustee, and anyone with delegated authority to act on its behalf must ensure that they act in furtherance of the Charity s objects and that they do not breach any of the requirements or rules set out in the Declaration of Trust. A breach of trust will occur if the Corporate Trustee, or anyone delegated by the Corporate Trustee, acts in a way that is contrary to the terms of the governing document - The duties, responsibilities and liabilities of trusteeship lie with the Corporate Trustee as the charity trustee and even though certain responsibilities have been delegated to a Committee the Corporate Trustee will remain accountable for action taken on its behalf. The members of the Committee must act in accordance with the responsibilities and duties of charity trustees to ensure that the Corporate Trustee is not in breach of its duties - Carry out the terms of their trust and, in doing so, they have general fiduciary duties, i.e. the duty owed by anyone who is placed in a position of trust in respect of property which is not their own personal property - The Corporate Trustee and therefore the members of the Committee with delegated authority from the Corporate Trustee have the following duties and responsibilities: - Ensure that the Charity complies with charity law and with the requirements of the Charity Commission as regulator; - Ensure that the Charity does not breach any of the requirements or rules set out in its governing document (i.e. its Declaration of Trust) and only act within its charitable objects; - Ensure compliance with the requirements of other legislation (see above) and other regulators which govern the activities of the Charity; - Avoid any personal conflicts of interest, for example, if a matter ever arises at a Charity Committee meeting in which a Trustee had a personal interest, he should absent himself from the discussion and take no part in the voting. The overriding duty of the Trustee must be the interests of the charity; - Prevent any misuse of Charity income or assets; - The Trustee and anyone with delegated authority to act on its behalf has a duty of care under The Trustee Act 2000 to exercise such care and skill as is reasonable in the circumstances, having regard in particular to any special knowledge or experience that he has, or holds himself out as having and if he acts as a Trustee in the course of business or profession, to any special knowledge or experience that it is reasonable to expect of a person acting in the course of that kind of business or profession; - The Trustee and anyone with delegated authority to act on its behalf has a fiduciary duty to the Charity to act in what they consider to be the best interests of the Charity; - The Trustee and anyone with delegated authority to act on its behalf must protect Charity property and ensure that systems of control are rigorous and constantly maintained; and - The Trustee, and anyone with delegated authority to act on its behalf, is responsible for ensuring that annual accounts and returns are completed and submitted to the Secretary of State and the Charity Commission as required General Office Staff Operational - Receipt of donations and petty cash reimbursements - Ensure the receipt of donation form is completed and the petty cash reimbursements are in line with the Charitable Funds policy Version 1.0 April 2017 8
Title Role Key Responsibilities Fund Holders Operational - Responsible for fundraising and ensuring all income is banked promptly via the cashier s office - Fast and effective use of the monies raised - Ensure that expenditure is within the aim of the individual fund and the overall charities objects - Report change in circumstances, e.g. retirement, long term sickness or leaving post should be notified to the Finance Department as soon as possible to ensure access and authorisation of funds is not affected Fund Managers Implementation - Authorise expenditure - Manage the fund flows Charitable Funds Committee - Ensure the funds are used in line with the key principles as outlined within this policy Responsible - The Board has delegated the administration of the Charity to Charitable Funds Committee. The delegation of the administration of the Charity to a Committee is a necessity of good administration to separate the Board s functions dealing with exchequer funds and the Charity s funds - Ensure the Board is kept informed of all decisions taken by the Committee so there must be formal procedures in place to ensure all decisions are reported back to the Board and approved by them - oversee the Charitable Funds activity within the organisation - Recommend changes in the way Charitable Funds are invested and spent, and reviews the systems in operation Trust Board Strategic - Ultimate responsibility for the management of the Charity - Manage exchequer funds - Ensure there is clear delegated authority between the Board and the Committee and clearly defined terms of reference, making it absolutely clear what is expected of the Committee by the Board - Approve all decisions reported by Charitable Funds Committee Version 1.0 April 2017 9
8.0 Training What aspect(s) of this policy will require staff training? Fund Management General Office duties Which staff groups require this training? Finance Staff Operational Staff General Office Staff Is this training covered in the Trust s Mandatory and Risk Management Training Needs Analysis document? No, staff will receive training in relation to this policy where it is identified in their individual training needs analysis as part of their development for their particular role and responsibilities No, staff will receive training in relation to this policy where it is identified in their individual training needs analysis as part of their development for their particular role and responsibilities If no, how will the training be delivered? This will be determined on a case by case basis This will be determined on a case by case basis Who will deliver the training? This will be determined on a case by case basis This will be determined on a case by case basis How often will staff require training This will be determined on a case by case basis This will be determined on a case by case basis Who will ensure and monitor that staff have this training? Financial Controller Financial Controller 9.0 Equality Impact Assessment Black Country Partnership NHS Foundation Trust is committed to ensuring that the way we provide services and the way we recruit and treat staff reflects individual needs, promotes equality and does not discriminate unfairly against any particular individual or group. The Equality Impact Assessment for this policy has been completed and is readily available on the Intranet. If you require this in a different fo rmat e.g. larger print, Braille, different languages or audio tape, please contact the Equality & Diversity Team on Ext. 8067 or email EqualityImpact.assessment@bcpft.nhs.uk 10.0 Data Protection and Freedom of Information This statement reflects legal requirements incorporated within the Data Protection Act and Freedom of Information Act that apply to staff who work within the public sector. All staff have a responsibility to ensure that they do not disclose information about the Trust s a ctivities in respect of service users in its care to unauthorised individuals. This responsibility applies whether you are currently employed or after your employment ends and in certain aspects of your personal life e.g. use of social networking sites etc. The Trust seeks to ensure a high level of transparency in all its business activities but reserves the right not to disclose information where relevant legislation applies. Version 1.0 April 2017 10
11.0 Monitoring this Policy is working in Practice What key elements will be monitored? (measurable policy objectives) Where described in policy? How will they be monitored? (method + sample size) Income/Donation 4.1 West Midlands Internal Audit Consortium Expenditure 4.2 West Midlands Internal Audit Consortium Who will undertake this monitoring? Internal Audit Internal Audit How Frequently? This will be under taken as part of their annual cycle of internal control work This will be under taken as part of their annual cycle of internal control work Group/Committee that will receive and review results Group/Committe e to ensure actions are completed Evidence this has happened Audit Committee Audit Committee Minutes of meetings and reports Audit Committee Audit Committee Minutes of meetings and reports Version 1.0 April 2017 11
Appendix 1 Receipt of Donation Type of Donation Charitable Donation (Complete section A only) Fund Raising (Complete section A only) Non-Financial Donation (Complete section A and B) Section A Form of Donation Cash Cheque My Donate Bank Transfer Other Designated Fund to be deposited Fund Number Fund Name Amount.. Specific Requirements stated by Donee... Name/Surname of Donee... Date of Donation... Section B Type of Item... Value of item (If there is more than one item, please list items on a separate sheet) To be completed by person receiving donation Donation Receipted By; Designation; Acknowledgement Letter sent Yes/No Please return completed form to Finance Version 1.0 April 2017 12
Appendix 2 11.0 Acknowledgment Letter Date Donor Name Address Acknowledgment Letter Headquarters Delta House Delta Point Greets Green Road West Bromwich B70 9PL Tel: 0845 146 1800 Fax: 0121 612 8050 Dear Donor On behalf of Black Country Partnership NHS Foundation Trust Charity, I would like to thank you for your donation of enter amount made on enter date of donation. The donation has been deposited to enter fund name, and will be utilised in accordance with the charity s objectives. Black Country Partnership NHS Foundation Trust Charity relies on the generosity of donors such as yourself and is grateful for your support. Thank you once again. Sincerely, Typed Name Title Version 1.0 April 2017 13
11.1 Receipt of Donation Appendix 3 Expenditure Request Form Please ensure all sections are completed in full incomplete expenditure forms will be returned. Guidance notes are available on completing this form please contact 0121 6128046 for details. Section A. Expenditure request Date of request..name of requestor. Name of trust fund Trust fund number. Expenditure details (what will the monies be spent on?) Please attach quotes / additional paperwork where necessary. Estimated or actual cost Amount before VAT VAT (if applicable) (A) (B) Amount after VAT (A + B) Section B. Does the request meet the overall objective of the Charity? Principle 1 There must be identifiable benefit or benefits Principle 2 Benefit must be to the public, or a section of the public. Yes / No Yes / No The expenditure needs to meet the overall objective of the Charity please provide an explanation of how it does:......... Has alternative funding been considered? E.g. Friends organisations or external funding body (provide details and actions):.... Version 1.0 April 2017 14
Section C. Approval In signing this form the signatory certifies that there are sufficient funds available to meet the proposed expenditure and that there are no revenue consequences resulting from the proposed expenditure which are not covered by approved budgets. Expenditure up to 500 Fund Manager Approval required: Print name...signed Date. Expenditure from 501 to 2,000 Group Director Approval required: Print name...signed Date. Expenditure from 2,001 to 5,000 Executive Director Approval required: Print name...signed Date. Expenditure over 5,001 Charity Committee Approval required: Print name...signed Date. Section D. Completed by Finance Department. Expenditure Request Number. Fund Number.. Fund Balance.. Purpose of Fund if restricted.. Sufficient Funds / Revenue Consequences Compatible with purpose of fund if restricted YES / NO YES / NO Financial Cost Centre/Expense Code.... Checked by:.. (Financial Accounting Manager) Date: Version 1.0 April 2017 15
Policy Details Title of Policy Unique Identifier for this policy State if policy is New or Revised Charitable Funds Policy BCPFT-FIN-POL-09 New Previous Policy Title where applicable Policy Category Clinical, HR, H&S, Infection Control etc. Executive Director whose portfolio this policy comes under Policy Lead/Author Job titles only Committee/Group responsible for the approval of this policy Month/year consultation process completed * n/a Finance Finance Director Financial Controller Charitable Funds Committee April 2017 Month/year policy approved April 2017 Month/year policy ratified and issued May 2017 Next review date April 2020 Implementation Plan completed * Equality Impact Assessment completed * Previous version(s) archived * Disclosure status Yes Yes n/a B can be disclosed to patients and the public * For more information on the consultation process, implementation plan, equality impact assessment, or archiving arrangements, please contact Corporate Governance Review and Amendment History Version Date Details of Change 1.0 Apr 2017 New policy developed, incorporating procedures directed towards trust fund users and finance. Version 1.0 April 2017 16