Finance, fundraising & donor stewardship

1. Purpose and scope

This draft applies to donations, grants, sponsorships, event income, fundraising campaigns and related expenditure. Its aim is to protect the Foundation, donors and communities through appropriate approvals and reliable records.

2. Official channels and approvals

Use only Foundation-controlled banking and payment channels approved by the governing body. Do not collect funds into personal accounts. New gateways, public campaigns, third-party collectors and fundraising agreements require documented approval before launch. Verify a proposed partner’s identity, reputation, terms and handling of personal information.

3. Donor care and honest claims

Explain the purpose of an appeal, the intended use of funds and any material restriction. Do not promise a tax-deductible receipt unless current eligibility and the relevant donation have been verified. Acknowledge contributions, record communication preferences and respect donor anonymity. Proposed service standards should be approved only when staff capacity can support them.

4. Restricted funds and financial records

Record donor restrictions separately, using a unique grant or campaign reference. Reconcile income to bank records and acknowledgements, investigate differences and retain supporting evidence. Do not redirect restricted funds without the necessary documented permission. Record in-kind contributions and their intended use without inventing valuations.

5. Expenditure and reconciliation

Operate against an approved budget and written delegation limits. Separate requesting, authorising, paying and reconciling where possible; use documented independent review where a small team cannot fully separate roles. Reconcile bank accounts regularly and report unexplained items, overdue reports and cash-flow risks to the governing body.

6. Exceptions, refunds and reporting

Document refunds, disputed payments, cash handling and losses through an authorised process. Maintain a donor and grant register, restricted-funds register, payment approval record and reporting calendar. The governing body must approve thresholds, signatories, reporting frequency and the finance owner before this policy takes effect. Suspected misuse should be escalated through the complaints and whistleblowing process.

Reference framework

Prepared with reference to the Department of Social Development’s NPO Codes of Good Practice and the Information Regulator’s POPIA resources. Review against the Foundation’s circumstances and applicable requirements before adoption.