# Update on checking and refusing donations

- Link: https://fundraising.co.uk/2006/01/24/update-checking-and-refusing-donations/
- Published: 2006-01-24T00:00:00+00:00
- Author: Howard Lake

Sandy Adirondack has updated her legal guide’s section on the duties of charities’
governing body members under the Proceeds of Crime Act 2002 to refuse a donation
which turns out to be the proceeds of a crime.
Sandy, author of The Voluntary Sector
Legal Handbook, reports that “governing body members could be prosecuted under the
Proceeds of Crime Act 2002 or other money laundering regulations if their organisation
accepts a donation or loan which turns out to be the proceeds of a crime, and the
governing body member or members knew or suspected that the funds represented the
proceeds of crime.”

She explains that the Charity Commission’s guidance on charities and terrorism indicates
that unsolicited donations could be suspicious, “especially if trustees are unable
to satisfy themselves about the credentials of the people involved or the propriety
of the donation or loan”.

The Commission encourages charity trustees who are suspicious about a donation such
that they want to refuse it to contact them.

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Sandy’s update links to the relevant Charity Commission advice sheet.

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