|Policy Owner||Risk and Governance|
Simpact Foundation is a philanthropic impact investment fund based in Zambia that believes that Social Impact Investments can provide alternative innovative sources of sustainable funding that can address social issues such as Gender economic inequality and education for the most vulnerable children. Simpact Foundation seeks donations that will support its mission through the granting of program funds, technical assistance, and professional development in order to meet the following objectives:
- Women Economic Empowerment– Impact investing to address gender economic inequalities through sustainable and affordable funding.
- Access to market for the small scale farmers.
- Fund access to Basic education for vulnerable children by providing educational tools such as books, desks and other school infrastructure.
- Funding school feeding programs in order to provide basic nutrition for vulnerable children required at their critical growth stage.
- Provide financial support for Simpact Foundation’s operations.
An irrevocable and voluntary transfer of cash and kind, from individuals, industry, foundations and other sources to benefit Simpact Foundation for either unrestricted or restricted utilization in the operations of Simpact foundation. Donations/gifts are made without expectation of return. No Quid Pro Quo or consideration (outside of appropriate recognition) to the donor or to anyone designated by the donor may result from the payment. Cash: Cash gifts are acceptable in any form, including by check, money order, credit card, or on-line. Donors wishing to make a gift by credit card must provide the card type (e.g., Visa, MasterCard, and American Express), card number, expiration date, and name of the card holder as it appears on the credit card.
(B) DONATION ACCEPTANCE COMMITTEE
Functions of this committee shall fall under the Simpact Foundation Board Fundraising Committee.
Donations –in-kind are noncash donations of materials, consulting services, executive loan programs, computer equipment, software, printed materials, food, or other voluntary services, as long as such gifts represent value to Simpact Foundation.
A “grant” is cash given to an individual or an organisation for a specific purpose. There is an obligation to fulfil any criteria the funding body may place upon the grant i.e. to ensure the project that is funded satisfies their aims and objectives and proceeds as outlined during the grant application process. Funding bodies usually require some level of profile in return for their grant and this should be in proportion to the size of grant and agreed in writing before accepting the grant. This is usually in the form of a logo or line of credit with agreed wording in publicity. Grants should always be documented in some form of written agreement between the parties. Grants are not subject to VAT.
(E) UNRESTRICTED DONATIONS
Donations, including grants, given to Simpact Foundation, where the donor has not specified the purpose for which the gift is to be used. These gifts shall be used for charitable purposes within the mission of Simpact Foundation.
Gifts, given to Simpact Foundation, where the donor has specified that the gift be used to support a particular purpose, and as such are tracked and reported separately on both financial and programmatic levels.
(G) REAL ESTATE
A gift of real property requires legal transfer of assets.
PURPOSE OF THE POLICY
The purpose of this policy is to provide priorities and projects with appropriate independence from its Donors. This Policy also aims at providing transparency regarding the identity of the Simpact Foundation’s sources of funding to avoid any suspicion of inappropriate influence or conflicts of interest concerning the organization’s activities. Examples may include: risks that accepting funding could pose to Simpact Foundation’s activities or its direct partners and reputational risk and protecting the NGO’s brand. Simpact Foundation will apply the policies and considerations set forth in this Policy prospectively as of the date hereof to all types and amounts of funding from all sources, irrespective of whether the organisation has made decisions in the past to accept funding inconsistent with the policies and principles set forth in this Policy.
Simpact Foundation solicits and accepts gifts for purposes that will help the organisation further and fulfil its mission. Simpact Foundation urges all prospective individual and institutional donors to seek the assistance of legal and financial advisors in matters relating to their donations, including possible tax and estate planning consequences. The following policies and guidelines govern acceptance of gifts made to Simpact Foundation for the benefit of any of its operations, programs or services.
All donations to Simpact Foundation must be in accordance with the overall mission of the organization; its policies and directives; and national laws and regulations.
All decisions to solicit and/or accept potentially controversial gifts will be made by the Executive Director and Two other members of the Board – this will make up the funding committee.
The Simpact Foundation Donations Acceptance committee will meet periodically/when a review is required. The committee will keep records/minutes summarizing discussions and decisions, and will undertake an annual review of the Donations policy to determine if any amendments are necessary.
When considering whether to solicit or accept gifts, Simpact will typically consider, but not be limited by, the following factors:
- Values—whether the acceptance of the donation compromises any of the core values and mission of Simpact Foundation
- Compatibility—whether there is compatibility between the intent of the donor and the organization’s use of the donation
- Public Relationships—whether acceptance of the donation will damage the reputation of Simpact foundation
- Primary Benefit—whether the primary benefit is to Simpact Foundation, versus the donor
- Consistency—is acceptance of the donation consistent with prior practice?
- Form of donation—is the donation offered in a form that Simpact Foundation can use without incurring substantial expense or difficulty?
- Effect on Future Giving—will the donation encourage or discourage future donations?
RESTRICTIONS ON DONATIONS
Simpact Foundation will not accept donations that
- would result in violating its mission,
- would result in Simpact Foundation losing its status as a registered NGO,
- are too difficult or too expensive to administer in relation to their value,
- would result in any unacceptable consequences or
- Are for purposes outside Simpact’s mission. Decisions on the restrictive nature of a donation, and its acceptance or refusal, shall be made by the Donations acceptance committee, in accordance with the Simpact Foundations’ Donation Acceptance Review Procedure.
DONATIONS GENERALLY ACCEPTED WITHOUT REVIEW
- Donations from donors that explicitly share the mission and values of Simpact Foundation
- Donations from donors with which Simpact has an established and beneficial funding relationship
- Donations from non-controversial donors
DONATION ACCEPTED SUBJECT TO PRIOR REVIEW
Certain forms of gifts or donations may be subject to review prior to acceptance. Examples of donations subject to prior review include, but are not limited to:
- Donations from unknown or unfamiliar donors with which Simpact Foundation does not have an established funding relationship.
- Donations from institutional donors (including foundations, foreign government agencies, corporations, corporate foundations, or for-profit entities) that might not implicitly or explicitly share the core values of Simpact foundation.
- Donations that require review by legal counsel: E.g. securities, tangible personal property, life insurance, or real estate.
- Donations that could lead to conflicts of interest.
- Donations that include significant restrictions.
USE OF LEGAL COUNSEL
Simpact foundation will seek the advice of legal counsel in matters relating to acceptance of donations when deemed appropriate. Review by counsel is recommended for:
- Donations of securities that are subject to restrictions or buy-sell agreements.
- Documents naming Simpact as trustee or requiring Simpact Foundation to act in any fiduciary capacity.
- Donations requiring Simpact Foundation to assume financial or other obligations.
- Transactions with potential conflicts of interest.
- Gifts of property which may be subject to environmental or other regulatory restrictions.
In order to ensure that this Policy continues to be effective, it shall be reviewed periodically. Simpact Foundation Executive Director is responsible for initiating this review by the Board at intervals not to exceed three (3) years.