Charity fund transparency: showing donors where it went

Small charitable funds are rarely short of goodwill. They are short of reporting, and the two are more connected than most committees realise.

The four things to publish

1. Donations received — amount and date, with the donor unless they asked otherwise.
2. Every payment out — amount, date, what it was for, and the bill.
3. The balance — what is still held and, where relevant, what it is earmarked for.
4. Who approved — a name against each payment.

Why silence costs so much

A donor who hears nothing does not usually complain. They simply do not give the next time, and nobody ever learns why. Reporting back is not a courtesy owed after the fact; it is the mechanism by which the next collection succeeds.

Overheads, stated

Every fund has some cost of operating — transport, phone credit, printing. Hiding it inside programme spending is what turns a reasonable expense into a scandal when somebody notices. A stated line for it, however small, is almost never objected to.

Earmarked money

Money given for a stated purpose should be spent on that purpose or returned. If a collection for a water pump raises more than the pump costs, the surplus is not general funds until the donors — or a rule they agreed to in advance — say so. Deciding this at the start avoids the awkward conversation at the end.

Common questions