1. Scope

For the purposes of this Code and the law, collection envelopes and collection boxes are treated in the same way, unless otherwise stated. The following guidance covers donations received in person and donations received through the post.

Summary: Donations coming into SSAFA must be dealt with:

1. Securely  for example, putting unopened post in a locked drawer/safe
2. Donations must be recorded  using SAVI database and record of journals/reports stored
3. Cheques/Donations processed by fundraising must be sent to Finance for banking as soon as possible.

General Requirements

OUGHT - Records OUGHT to be made of donations for specific purposes (certain appeals/projects etc) to ensure that the terms of donations are complied with.

MUST NOT - Professional fundraisers and commercial participators MUST NOT make any deduction from cash received for SSAFA. Other fundraisers MUST NOT make deductions from cash received unless agreed with SSAFA.

MUST - Local Authorities may impose additional rules about making deductions from collections and fundraisers/fundraising SSAFA MUST comply with these where relevant.

MUST - Expenses MUST be met (where previously agreed) by SSAFA after receipt of the donation.

Receipts

MUST - For house-to-house cash collections where a sealed collecting box is being used, donations MUST be       placed inside. Otherwise, the collector MUST issue and sign a receipt for the donated amount.

MUST - Under the model regulations for street collections, donations MUST be placed in sealed collecting receptacles. It is not necessary to give a receipt.

MUST - In Scotland, a collector in a licensed collection which is carried out by collecting box MUST only accept donations by permitting the donor to place it in a collecting box. Alternatively, the collection can be carried out by sealed envelopes, in which case the collector MUST only accept donations in sealed envelopes using the numbered envelopes issued to him. It is not therefore usually possible to issue receipts.

Banking

OUGHT - Cash OUGHT to be banked as soon as is practicable by Finance.

OUGHT - Cash not banked immediately OUGHT to be placed in a safe or other secure location.

MUST - In Scotland, where cash is received in collection envelopes or collection boxes as part of a public charitable collection, it MUST be counted and banked in accordance with the Public Charitable Collections (Scotland) Regulations 1984, as amended.

Cash

OUGHT - Cash OUGHT to be collected, counted and recorded by two unrelated individuals, wherever possible. (Collection boxes MUST only be examined and opened by the promoter of the collection (.e.g. a charity’s fundraising manager) and one other responsible person or by an official of a bank).

OUGHT - Unsecured cash OUGHT never to be left unattended or in an unattended environment.

OUGHT - At the earliest possible date, reconciliation OUGHT to be made between cash banked and income summaries. Where practical, this OUGHT to be undertaken by a person independent of the counting and cashing up of the money.

OUGHT - Cash OUGHT to be counted in a secure environment

Cheques

OUGHT - Cheques OUGHT to be banked or, where used, sent to SSAFA’s fulfilment house promptly. Cheques (returns from appeals FREEPOST envelopes) opened by Fundraising must be recorded on Progress database and sent to Finance for banking, accompanied with a Batch Report.

OUGHT - If sending cheques to a fulfilment house or external processor,SSAFA OUGHT to ensure the method of sending the cheque is appropriate to the value being transported.

OUGHT - Unsecured cheques/vouchers OUGHT never to be left unattended or in an unattended environment and should be secured in a locked cabinet overnight.

Charity Vouchers/Cheques

Charity voucher/ cheque accounts enable donors to make donations(s) via a lump sum or regular amounts into an account. The agency administering the account will claim and add Gift Aid to the donation. The donor is issued with a book of vouchers/cheque book to donate this money to their preferred charities. On receiving the voucher/ cheque, the beneficiary charity contacts the agency and arranges for the donation to be transferred.

MUST - SSAFA MUST NOT reclaim tax on the donation, as the Gift Aid was added before receipt.

OUGHT - Vouchers OUGHT to be banked/ redeemed promptly, ideally the next working day, unless the voucher organisation requires otherwise

Card Transactions

This section applies to transactions both where the donor is or is not present.

The steps that need to be taken to ensure security will vary depending on the number of transactions that are made. Guidance is available from the Payment Card Industry Security Standards Council.

OUGHT - SSAFA OUGHT to comply with the Payment Card Industry Data Security Standards (PCI-DSS). PCI-DSS consists of 12 requirements that all SSAFA and businesses processing card payments have to meet.

OUGHT - Additional security measures such as Verified by Visa and 3DSecurecode OUGHT to be used for online transactions where resources allow.

OUGHT - The PCI-DSS state that the CSC should not be stored and this requirement OUGHT to be observed.

OUGHT - Where charges are made for transferring payments, the total donation amount OUGHT to be recorded as income, with a further record of expenditure to cover the charges.