Refund policy
Our pledge to you
Based upon our Code of Fundraising, Salam Charity commits to using donations for its humanitarian services and interventions, even in the event that a campaign fails, in order to protect the best interests of the charity.
Privacy
If you have any questions, concerns, requests, or comments about privacy, you can contact us at salam@salamcharity.ca or call 647 424 2008.
1. Definitions
The donor
The individual who is making the donation, financial or otherwise, to Salam Charity.
The fundraiser
The individual who is raising funds in aid of Salam Charity and requesting donations, either through events or personal requests, as a form of sponsorship towards a pledged fundraising amount.
What we constitute to be a campaign
- Emergency campaigns
- Sponsored local and international Challenge events
- Local events
- Gala dinners & Networking events
- Exhibitions
- Crowdfunding
- International deployments
- Any other occurrence where a campaign for a particular purpose fails to raise sufficient funds to meet the stated target income.
Ex-gratia
An ex-gratia payment is one that is given as a favour or gift and not because it is legally necessary.
2. Policy clauses
2(a)
Donations will be used to further support Salam Charity’s objectives. The Charity’s objectives are to promote such charitable purposes as the Executive Committee determines for the benefit of young people and families primarily living in developing countries and in particular, but without limiting the foregoing, to relieve the poverty and sickness, advance the education, and protect the good health of such persons. Salam Charity values every single donation and it is because of this generosity that we are able to continue to help vulnerable children and families all over the world.
2(b)
If a donation is made to support Salam Charity and the donation is not made to a campaign and/or there is no legal obligation for the charity to return a donation, the Trustees must determine whether there is a moral obligation for the charity to return the donation.
2(c)
If the campaign literature has not specified this, the donor has the right to make a specific written request to reclaim their donation as specified in Section 65 of the Charities Act 2011. In this event, the request will be passed on to the Trustees who must then take certain steps to contact the donors who have made declarations.
2(d)
If the campaign relates to a Sponsored Challenge Event and the donor requesting the return is not the fundraiser, Salam Charity is required to inform the fundraiser of the request for return of donations.
2(e)
If the donation made by a donor is the result of a fundraising event where multiple individuals have contributed to the total donation (e.g. a car wash, deployment, all crowdfunding initiatives…), a return of donation cannot be considered unless applications from each individual donor are received.
2(f)
If a donor wishes to apply for a donation return, they must write to the Trustees by email or letter outlining:
- Emergency campaigns
- Sponsored local and international Challenge events
- Local events
- Gala dinners & Networking events
- Exhibitions
- Crowdfunding
- International deployments
- Any other occurrence where a campaign for a particular purpose fails to raise sufficient funds to meet the stated target income.
2(g)
If the Trustees decide that there is a moral case for the charity to return the donation, they must apply to the Charities Commission to make an ex gratia payment. This application will then be submitted to the Charities Commission and they will inform the donor of the decision and take appropriate action
2(h)
If a donation return request is successful, the return can only be made to the individual who made the donation. In the event that a successful request for a donation outlined in Clause F, a return of the equivalent value to the original donor will only be made to the original donor. The Charity will not return the donation to any account other than one registered with the donor.
A legal obligation to return a donation
In certain circumstances there may be a legal obligation for Salam Charity to return a donation. For example, the conditions attached to the gift may require the return of the gift in certain circumstances.
One situation where this might arise is known as a failed campaign. This may occur where a campaign for a particular purpose fails to raise sufficient funds to achieve that purpose: strictly the donors may be entitled to a refund.
This can be pre-empted if the wording of the campaign literature makes it clear that in these circumstances, the funds will be used for the charity’s general purposes. The donor will not generally be entitled to a refund in those circumstances.
If the donor is, strictly, entitled to a refund, the provisions of the Charities Act 2011 may help.
Section 65 Charities Act 2011 applies if donors to a campaign are informed that if the campaign fails, donations will be used for general charitable purposes, unless the donor makes a written declaration to the effect that they would like to have the opportunity to reclaim their donation in these circumstances. If the campaign fails, the trustees must then take certain steps to contact the donors who have made declarations: the Charity Commission can then be asked to make a scheme under section “63 Charities Act 2011 to apply the donated funds for different charitable purposes."
More information is available in Charity Commission operational guidance OG53: Charitable Campaigns – Avoiding and Dealing with Failure. Note that it will often be easier to ensure that campaign literature simply specifies that the funds will be used for the charity’s general purposes if the campaign fails, rather than relying on the more complicated section 65 procedure, which requires the Charity Commission’s involvement.
If Section 65 does not apply, it may still be possible to ask the Charity Commission to exercise its powers under section 63 to make a scheme to the effect that the property should be used for different charitable purposes. Section 63 allows the Commission to make a scheme in certain circumstances, including where the donor cannot be identified or found after certain advertisements and inquiries have been made. Under section 64 certain donations can be treated as belonging to donors who cannot be identified, including cash in collecting boxes and funds which the Charity Commission has decided should be treated as belonging to unidentifiable donors, because the costs of trying to trace the donors would be disproportionate or because in the circumstances (for instance a lapse of time) it would be unreasonable for the donors to expect the return of their donations.
There may also be scope to take advantage of the Commission’s general scheme making powers in the event of a failed charitable gift.
Another example of where there may be a legal obligation to return a donation is under Section 61, Charities Act 1992, Part II, which applies in England and Wales and provides for the return of donations of more than £100 made by credit/debit card within a seven day ‘cooling off’ period. The donation must have been made in response to a campaign by a professional fundraiser or commercial participator either in the course of a radio or television show or otherwise made orally (other than by speaking directly to, or in the presence of, the individual to whom the campaign is addressed). NB. Section 61 of the Charities Act 1992 was updated in 1999 to set the applicable threshold for return of donations to £100 from £50..
A moral obligation to return a donation — ex-gratia payment
There may be situations where a charity has no legal obligation to return a donation which has been made, but the trustees feel that there is a moral obligation to do so.
There is scope for the Charity Commission, using its powers under section 106 Charities Act 2011, to authorise a charity to refund a donation in these circumstances. More information is available in the Charity Commission’s guidance CC7: Ex-Gratia.
Payments by Charities and in the Charity Commission’s operational guidance OG 11 Ex-Gratia Payments by Charities.
