Charities, contributions and Christmas appeals
Commercial insurance
29th November 2011
With Christmas rapidly approaching, charities in the UK are no doubt planning their festive fundraising appeals and looking forward to their various events with great excitement.
However, Giles Insurance Brokers Ltd has issued a timely reminder for charities and individuals alike about the importance of taking out the relevant insurance policies when holding fundraising events at this time of year, or at any time in fact, to ensure they are well protected against all possible eventualities.
Whether the event is on a local scale, such as Inverurie charity Inspire's Boxing Day Nippy Dip on Aberdeen beach which is being held to raise funds for people with learning disabilities and who are in need of additional support, or a UK-wide affair like Race for Life, insurance is a necessity that all charities need to consider taking out before holding an event.
Christmas seems to be the ideal time for charities to do a bit of fundraising, perhaps because people are more inspired to be generous and make donations at this time of year. Aside from the Nippy Dip on December 26th, there are many other events going on around the UK, including those put on by the Stroke Association. This charity held a Snowman Scamper fun run in Sevenoaks on November 27th and a Santa Run in Richmond Park - where people dressed up as Father Christmas and went for a five-kilometre run in aid of the charity.
Without insurance, events like these could in fact end up costing the charity in question money, instead of raising it for good causes. As the Charity Commission explains, trustees have a duty to look after the resources and assets of their charity and, since all organisations face risks, taking out insurance can be a good way of protecting themselves against any liability, damage or loss.
For example, it may be appropriate for charities to take out public liability insurance - a good choice if the trust owns or occupies land or buildings, or will be holding a business activity outside of their own premises or an event attended by members of the public. This cover will ensure the charity is indemnified against claims for loss or damage to material property or bodily injury or illness.
Other insurance charities may wish to take out include events and appeals insurance, the Commission continues. Organisations often take out cover to protect themselves against losses arising from the cancellation of a fundraising event, such as galas, shows and fetes, as a result of inclement weather.
Charities can also take out insurance when conducting an appeal so the costs of setting this up and administering it can be covered if the response is not as positive as expected. Furthermore, this can be extended to cover any loss of monies raised at an event either kept at the home of a member of the charity or when being transported.
Fidelity insurance could also be a good option for some charities and it is possible to take out cover to protect the trust against dishonesty or fraud by any employees when they are handling the charity's valuables or cash. This can also be extended to include dishonesty or fraud on the part of the charity's trustees or volunteers. In this case, however, charities need to prove that its administrative operations are properly supervised and adequate.
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