The IET’s Board of Trustees is responsible for the overall governance of fundraising and for approving fundraising policies and/or delegating authority to the CES and Development Steering Group or member(s) of the IET’s senior management team as appropriate.
1. Seeking charitable support - Campaign proceeds must be used to advance the charitable objects and purposes of the IET.
“The objects and purposes of the IET are to promote the general advancement of science, engineering and technology and to facilitate the exchange of information and ideas on these subjects amongst the members of the IET and otherwise.”
2. Fundraising Goals – In addition to the wider campaign goals, any financial goals for individual programmes are determined by the Development Steering Group, and the Board of Trustees will determine any figure to be included within annual budget. A three to five year fundraising strategy will be developed and maintained by the Development Steering Group. Resourcing the fundraising work is determined by the Board of Trustees within the usual budget and planning procedures.
3. Charitable priorities - The campaign is focused on the following major priorities:
- Scholarships, bursaries, prizes, awards and other activities that help close the skills gap.
- A portfolio of initiatives to underpin a renewed stimulus for engineering.
The IET will accept gifts for any/all charitable activities of the IET including the renovation of IET facilities. Sponsorship arrangements, such as for events may be managed outside the fundraising activities.
4. Accurate and full documentation of gifts - All gifts and pledges will be fully and accurately recorded. Verbal pledges will not be counted toward totals but will be recorded and the IET aims to send such prospective donors regular reminders. Any payments then received will be counted toward totals and the gift acknowledged in writing.
5. Clear financial accounting - Funds will be accurately recorded and reported through ensuring that:
- Funds are properly routed through IET or IET Services Limited. This will be dependent on whether contributions meet the definition of a ‘donation’ or a ‘sponsorship’ payment for tax purposes. Legal advice will be taken from the IET’s General Counsel as to whether any contribution is classified as a donation or sponsorship;
- Revenue is recognised appropriately in accordance with UK Generally Accepted Accounting Practices (“UK GAAP”) and the Charities Statement of Recommended Practice (“Charities SORP”);
- Central overheads are cross charged appropriately, and as necessary, between IET and IET Services Limited.
The IET Trustees are responsible for determining the budget of the IET under the scheme of delegated authority. The use to which unrestricted funds are put will also be managed through the scheme of delegated authority agreed by the Board of Trustees and is subject to the same controls as other areas of spend.
6. Volunteer-led - Fundraising is predominantly volunteer-led and staff-supported, with high profile and respected trustees, members, and friends of the IET playing active roles. This includes engaging with potential contributors, leading and assisting with requests for financial support, including in-kind support, and providing governance and oversight to the conduct of the fundraising, including delivery of priority projects to ensure the potential impact is maximised.
7. Working in partnership - The campaign is committed to working in partnership with other respected organisations on the design and implementation of priority projects such as scholarships, special reports, lectures, etc. Through effective partnerships, the IET seeks to have a wider and more immediate positive impact by avoiding duplication of effort and availing of the complementary skills and networks of others (universities, learned societies, NGOs, etc.).
8. Regular communications - Progress will be reported to the Board via the CES Report. In addition, the Development Steering Group will be in regular contact with volunteers, donors and prospective donors, as appropriate, through quarterly updates, and an annual fundraising report.
9. The IET is registered with the Fundraising Regulator and its activities will comply with the Code of Fundraising Practice.
Fundraising leadership and governance
10. Entrusted to the CES - Progress is reported to the Board of Trustees via the quarterly CES Report. The CES and Chair of the Development Steering Group are empowered to recruit and engage a group of high level volunteers to lead implementation of the fundraising activities with support from IET staff and professional fundraisers.
11. Specific role for volunteers – Volunteers play an important role in fundraising through the Development Steering Group – see Terms of Reference. The CES may also recruit “Campaign Ambassadors” to assist in the identification and approaches to potential donors. The Development Steering Group may also recommend Ambassadors for appointment.
12. Every person involved in fundraising for the IET, including all executives, volunteers, and staff, agree to the following:
(A) Fundraising-related discussions concerning major gift potential donors/supporters are strictly confidential;
(B) Information concerning donors (i.e. personal data relating to a donor and details of their donations, including past giving patterns, specific gifts, and personal disclosures about giving interests) is confidential except to the extent expressly agreed otherwise with a donor; and
(C) The IET honours donors’ requests to remain anonymous.
The IET places the highest priority on protecting the privacy of its donor information. Data gathered for and during any fundraising activity will not be shared with any third party organisations, subject to any legal requirements. All data will be kept secure, up to date, and as accurate as possible.
13. Trustee representation on Development Steering Group - The Development Steering Group must have at least two Trustees as members to ensure Board oversight.
14. No legal or tax advice - Fundraising representatives (staff and volunteers alike) are prohibited from providing legal or tax advice to potential donors.
15. No personal benefit - Fundraising representatives (staff and volunteers alike) are prohibited from personally benefitting financially (except that staff members shall be salaried) or in other material ways from specific gifts and pledges made to the IET’s programmes. Staff and volunteers must declare to the Development Steering Group any potential conflicts of interest that might exist.
Priorities and use of funds
16. Champion - All funded projects will have an IET staff ‘champion’ to ensure implementation - volunteers, potential donors, and IET staff alike are encouraged to think creatively and practically about the types of scholarships, bursaries, awards, special reports, partnerships, etc. that can deliver the greatest impact. These ideas will be reflected in clear funding proposals to potential benefactors. All funding proposals will be developed in collaboration with the IET staff members who will have responsibility for ensuring successful implementation once the gift is secured.
17. Restricted vs. unrestricted gifts - The Development Steering Group anticipates that many of the gifts received will be restricted by the donor for specific aspects of the IET’s work (dedicated scholarships, specific lecture series, etc.). This is particularly the case for larger gifts and pledges (£25,000+ per annum). All gifts may be restricted or unrestricted. However, for smaller gifts and pledges, the IET will encourage donors to make their gifts unrestricted, to ease administration. The Development Steering Group shall ensure that restricted funds:
(A) are donated on terms that are in accordance with the IET’s powers and charitable objects;
(B) are donated on terms that are practicable by the IET;
(C) are without incurring disproportionate expenditure by the IET;
(D) do not commit to actions by third parties who have not agreed to such actions; and
(E) do not allow a donor or sponsor to fetter the IET’s discretion[1].
18. What fundraising in the IET will NOT support – Fundraising in the IET is committed to having the widest public impact and benefit. The funds raised will not be used to advance the narrow or private/commercial interests of individual donors.
19. Measures of success - The Development Team will produce an Annual Report on progress and the positive impact funded projects are having. Reports are made available via the IET’s website.
Methods of giving to the campaign
20. Seven ways to give to the campaign - Donors can support the campaign in a number of practical ways:
- A single or multi-year charitable gift of cash is the most common and preferred option.
- Publicly traded shares may also be gifted, with the donor receiving credit for the fair market value of the shares at the close of business on the day of the transfer. The IET will sell the shares at the earliest possible time. Proceeds will be credited to the campaign.
- Gifts of real estate and other tangible property are also accepted. The gift will be credited based on the appraised value of the property at the time it is accepted, provided there is no restriction on its sale.
- In-kind gifts are accepted - See policy below.
- Legacies and bequest intentions - The campaign is an opportunity to secure legacies and bequest intentions, especially from IET members. Legacies will be credited to the campaign upon receipt.
- Net revenue from any fundraising special events will be credited to the campaign.
- Matching gifts from corporations - The IET encourages donors to secure matching funds from their corporate employers where such programmes are available. Matching funds received will be credited to the individual for donor recognition purposes.
21. In-kind gifts at fair market value - In-kind gifts are welcome and will be credited to the campaign based on fair market value. The IET would transfer the fair market value of the donated goods to the ring fenced campaign funds. Those funds could be used to create the (for example) ABC Company scholarship, sponsor the ABC Company lecture, or make possible a special report and global summit.
22. Contracts will not be counted - Commercial contracts to produce proprietary reports, research, etc. for a donor’s exclusive use will not be counted in the campaign totals.
23. Benefit/acknowledgment given – If any benefit/acknowledgment is given to a contributor in exchange for/respect of a charitable contribution, then that benefit/acknowledgment will need to be considered properly for tax purposes to determine whether the contribution is a genuine donation or a sponsorship payment. This determination will impact which legal entity the transaction will be placed through and the attraction, or otherwise, of VAT. Staff should take legal advice on tax issues from the IET’s General Counsel.
24. Complaints procedure – Any questions, concerns, or comments should be directed to the Director of Governance and External Engagement.
Administration of pledges
25. Pledges may be paid on a schedule established by the donor. To assist the IET with budgeting and planning, a 3-5 year pledge period is recommended where the donor prefers this to a lump sum payment. Note:
(A) Pledge payment schedules will be indicated in third party written correspondence with donors (e.g. signed pledge forms, signed memoranda of understanding and/or e-mail confirmations. Donors will receive regular pledge reports.
(B) Pledge payments will be carefully monitored and steps will be taken to encourage donors to remain on schedule, including sending pledge payment reminder letters.
26. Individual donors will be encouraged to add Gift Aid to their pledges, adding 25% to the value of their donation. Each pledge form will contain a Gift Aid declaration and all donors who fulfil Gift Aid conditions will be asked to sign this. Gift Aid will be included in the campaign total.
27. Copies of Gift Aid declarations of individual donors will be retained by the IET in order to create an audit trail which links each donation to an individual donor and also records the details of any benefits received by the donor from the IET in consideration of the donation.
28. Legacies When the IET receive notification of a legacy following someone’s death, these are currently routed to the Finance Team (more specifically our UK Financial Controller). Whether it is a restricted gift or not, the fundraising department is immediately informed so that they may thank the relevant parties via the executor of the Will. The IET have a specific account code for legacies within finance so that the volume and number of legacies received can be monitored.
Recognising donations including special naming opportunities
29. Details of the IET’s approach to donor recognition are shown in the Acknowledgement and Recognition Guidelines.
30. The Board has also approved a list of “supported by” naming opportunities for IET facilities and funds and the suggested level of donation for such recognition. No facilities may be named in perpetuity. Funding arrangements may not require exclusivity of use. The IET Board of Trustees retains the right to remove a name based on any action by a private individual or corporate entity that is deemed by the IET to be inappropriate and/or in conflict with its values.
31. The use of a company name or logo on a special commissioned report on behalf of the campaign will be decided on a case by case basis and subject to legal and taxation advice.
32. Donors may elect to remain anonymous. In that event, the CES, finance team, and individuals responsible for managing any pledge payments will protect each donor’s privacy, subject always to adequate scrutiny through the IET’s Due Diligence process and to oversight by the Board of Trustees. In the absence of a directive of anonymity, the IET will recognise and acknowledge gifts at levels and in manners appropriate to the donation level.
33. Due diligence. As a charity, the IET will take steps to identify donors and where significant donations are proposed (in excess of £5,000) or where the donation may create a particular risk to the IET, to verify the identity of the donor through additional checks. Where a donor wishes their donation to be recorded anonymously, identification checks must still be made. The Fundraising Campaign will also comply with all other IET policies, such as those relating to Banking Sanctions. See also further guidance under Know Your Donor at item 8 of this manual.
34. Legacies: If a legacy donation of at least £750 is made to the IET, there will be an opportunity for the donor to have a Take Your Place Foundation wall block to recognise their donation. Unless the legacy notification has specifically instructed that the donation remains anonymous, a request must be sent to the executors of the Will before this form of recognition is implemented.
[1] For instance where a donor or sponsor wishes to choose the individual recipients of donations OTHER THAN on the basis of objective criteria determined in conjunction with the IET and thereby using the IET as a mere conduit.