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You should be very cautious of running any live fundraising appeals if you know you’re going to close.
You should be open and clear with donors on the use of the funds and the wider context of the organisation. You should also make it clear to donors how funds will be used if the appeal raises too little or too much.
New donors may want to support you to continue certain activities. In this scenario, your trustees may need to consider whether to refuse a donation.
Trustees must only refuse donations if accepting them would harm the charity’s ability to achieve its objectives. Registered charities should also consider discussing this with the Charity Commission.
If you’re running an appeal which will fail due to the closure, the money should be returned to donors, unless they’ve agreed their money can be used for another purpose. New provisions in the Charities Act 2022 have made the rules around failed charity appeals simpler.
Last reviewed: 07 July 2023Help us improve this content
Guidance and tools to help you run your charity or voluntary organisation
What to consider when closing down your charity or voluntary organisation
Important things to consider before deciding to close your voluntary organisation
Steps you need to take before closing your organisation
Guidance on how to help people through the emotional and practical process of closure
Guidance on common situations charities face during closure
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