Raising money for other charities

Can we raise money for other charities?

Lots of music groups enjoy supporting other charities. However, for charitable organisations it’s important to make sure your activities fit within your charitable objects.  

Most music charities will have a charitable object about the public appreciation in the art and science of music. Some might have a general object which states that they can raise money for other charities. Objects like this are increasingly rare and can muddy the water around where money goes and what it is used for.  

The objects should be the guiding light for the trustees – you should be able to draw a line between your activities and how they help meet your objects. Equally when someone gives money to your charity, that money should go towards meeting the cause stated in your objects. 

That doesn’t mean you can’t support or help raise funds for other charities, it just means you have to plan it carefully.  

How can we raise money for other charities if this doesn’t fall under our objects?

The simplest way is for any funds raised for other charities to be handled by them directly and not go through your bank. They could shake buckets or provide a volunteer with a card reader at your events, or they sell tickets themselves – and you donate your skills as musicians by performing,  

We know some groups like to donate tickets sales to another charity. This is   more complicated as you are essentially acting as a fundraiser for the other charity. There should be written agreement in place between the two organisations and it should also be very clear to donors or attendees exactly where their money is going. This needs to a specific and unambiguous. ‘All proceeds go to X charity’ is ambiguous. It is better to say 100% of your ticket fee goes to X charity or ‘£5 or every ticket sold’.  

If the money comes through your bank it needs to be accounted for properly as it is not classed as your income and you cannot claim Gift Aid on it. Exactly how you account for it will depend on if you are using cash or accruals accounting, you can get in touch if you are unsure.  

Think carefully before donating surplus funds

Some groups choose to share surplus funds at year-end. While well-intentioned, any donations must align with your charity’s purpose. 

Giving to a similar cause, like another music charity, may be appropriate if it supports your mission. The priority should always be your charity’s best interests. If your core work is covered, a proportionate donation to a related project that fits within your objects could be reasonable. 

Donating to charities with different aims (e.g. an animal sanctuary) is generally not allowed. Donors expect their contributions to support your cause. Trustees must ensure funds are used accordingly, as unrelated spending can damage trust.