30th April 2020
In times of crisis, when charitable funds need to be mobilised quickly, setting up a charity can be a major barrier to giving. With the outbreak of Covid-19, charities are seeing an increased demand whilst at the same time facing pressure as traditional income streams, such as large fundraising events, are impossible to operate. The third sector is having to adapt to respond to the crisis and this means looking for alternative ways of fundraising tax effectively and operating charitable programmes. Prism the Gift Fund’s Collective Fund service provides an alternative to those wanting to set up a charity in these difficult times. The Collective Fund model enables fundraisers to carry out their charitable initiatives by offering a time, cost ,and tax-effective alternative to setting up a standalone charity; mobilising funds and distributing grants swiftly in a time of crisis.
What is a Collective Fund?
A Collective Fund is an easy way to set up a charitable fund that provides individuals and groups fundraising for a specific charitable cause a structure under which they can operate. This unique giving vehicle means groups can fundraise tax effectively from UK donors and benefit from outsourcing their administration and governance to charitable experts (Prism the Gift Fund, ‘Prism’). A Collective Fund offers a swift, flexible and responsive alternative to those wanting to run charitable programmes without having to go through the onerous process of setting up a standalone charity.
Who can set it up?
The Collective Fund is aimed at individuals and groups fundraising a minimum of £25,000 per year for a specific charitable cause. It provides an ideal vehicle for those that are starting on their charitable journey and want to benefit from Prism’s governing structure and charitable expertise. Conversely, the Collective Fund model may also appeal to overseas charities that want to broaden their UK donor base and fundraise tax effectively in the UK without going through the process of registering a whole new charity.
Prism is home to over 60 different Collective Funds which vary greatly in their work: from supporting refugees in the humanitarian crisis, conservation efforts, and health research. Prism ensures all the Collective Funds are deemed charitable under UK charity law so that these groups can operate under Prism’s auspices. They benefit from Prism’s charitable structure with rigorous processes and policies in place to ensure the highest level of charitable operations.
How does the Collective Fund work?
Once a Collective Fund has been set up under the auspices of Prism, they can start fundraising straight away with Prism’s charity number, allowing them to benefit from the UK government’s charitable tax relief: Gift Aid.
All funds raised by the Collective Fund at Prism become restricted for the specific charitable cause which they were raised for. Prism provides a full administrative service including financial administration; receiving all the donations raised and processing all the charitable expenditures of the Collective Fund.
Prism, as the registered charity, is responsible for governance and ensuring compliance in all the group’s activities. As the charitable sector has become an increasingly complex regulatory environment to navigate, by outsourcing the financial administration, governance and compliance to charitable experts, Collective Fund founders can focus on fundraising and running their projects with peace of mind.
What are the Benefits?
- Create and name your own ‘restricted fund’
- Determine your charitable objectives – be it cause-related, to raise funds for an overseas charity or in the name of a loved one (memorial funds)
- Operate under Prism the Gift Fund’s registered charity auspices
- Ability to fundraise online
- Receive 25% in Gift Aid on all eligible donations
- Benefit from the oversight of Prism the Gift Fund’s experienced Board of Trustees
- Gain transparency in your charitable activities – Prism the Gift Fund conducts all due diligence on your behalf
- Receive a dedicated account manager at Prism the Gift Fund
- Outsource all financial administration to experienced charity professionals – Prism the Gift Fund receives and administers all income and expenditure
Prism’s Collective Fund model started in 2014 and then grew exponentially in 2015 following the outbreak of the refugee crisis across Europe. Many groups were looking to raise money quickly and efficiently in order to mobilise funds fast so that vital aid could reach refugees when it was needed most. Prism’s Collective Fund offered a charitable structure for these groups to operate under and carry out their projects in a time and cost-effective way. With Covid-19, Prism is also in a unique position to help and enable individuals and groups that are wanting to run charitable projects to help those affected by the virus. For more information on Prism’s Collective Fund Model please contact firstname.lastname@example.org.