Collective Fund Series: 'British Friends Of' Structure

26th February 2024

At Prism the Gift Fund (Prism), our Collective Fund model takes on various forms, tailored to each client’s needs to best support their charitable purpose . This blog series will spotlight each of our Collective Fund structures, showcasing how our clients leverage these vehicles to raise funds for a diverse range of charitable initiatives.

First we are exploring the ‘British Friends Of’ or ‘BFO’ structure, which has gained prominence in the philanthropic world as a powerful tool for supporting and enhancing international charitable efforts. These structures connect with a broader donor base and offer tax benefits for UK donors, thereby increasing the flow of funds into the charitable sector on a global scale.

Within Prism, our BFO funds sit within our auspices as a UK registered charity, raising funds for overseas charitable organisations. There are several benefits to running a BFO Collective Fund through Prism:

Legal Framework:

Our BFO Collective Funds are structured within the legal framework of Prism, allowing you to benefit from the UK’s robust regulatory environment, whilst providing transparency and accountability to donors.

Donor Engagement:

These structures provide a platform for UK donors to contribute to causes they are passionate about on a global scale. By channelling funds through a ‘British Friends Of’ organisation, donors can take advantage of tax benefits and contribute to international projects with confidence.

Tax Advantages:

Donors supporting ‘British Friends Of’ entities through Prism often benefit from strategic tax incentives, making their contributions more impactful. The UK tax system encourages philanthropy by offering Gift Aid and other tax-efficient giving mechanisms.

Enhanced Credibility:

BFO organisations operating within Prism’s framework, enhance the credibility of international projects. Providing a local, UK-based point of contact fosters trust among donors, offering a familiar entity through which they can engage and validate the impact of their contributions.

Operational Support:

Beyond fundraising, these structures often provide operational support to their overseas counterparts, aiding in areas such as governance, administration, and compliance. This collaborative approach ensures a more efficient and effective use of resources.

Prism currently hosts ‘British Friends Of’ structures linked with Australia, the US, France, Canada, South Africa, and Israel, establishing effective channels to engage with a UK donor base in support of overseas initiatives. Here are some examples of some of our BFO clients and the incredible work they are doing.

“ClimateForce Ltd is a biodiversity non-profit that is dedicated to regenerating 527 acres in the Daintree Rainforest, a World Heritage Site. We’re proud to say that we made substantial progress in 2023, with more than 10k trees in the ground. Our rapid growth has also brought many new faces to the team. We’re looking forward to an even brighter 2024 and are immensely grateful for Prism’s ongoing support.”

You can find out more about ClimateForce via their website https://theclimateforce.org/

“Ukrainian Action (UA) is a volunteer-run, registered UK charity dedicated to supporting the survival and recovery of Ukraine. UA regularly drives and donates vehicles filled with humanitarian and medical supplies from the UK to Ukraine, and manages a rehabilitation program teaching veterans to ski in the Ukrainian Carpathians. During February 2022-February 2024, UA completed 50 humanitarian aid convoys from the UK, donating over 250 vehicles to Ukraine for medical evacuation and the distribution of humanitarian aid. Join the Action by donating or volunteering as a driver via our website www.UkrainianAction.com.”