Charities may want to provide gifts or honorariums to individuals – including current or outgoing Responsible Persons, members, staff or volunteers – as a gesture of gratitude and appreciation for their services.
The decision to provide gifts or honorariums comes with some important considerations and charities should approach it with care and diligence.
As each charity is different, operating in different environments with different aims and challenges, the considerations in deciding to provide gifts or honorariums will differ.
Each charity’s Responsible Persons need to properly consider the issues and concerns with providing gifts or honorariums in the context of their own charity and understand the implications of their decision.
Some charities refer to payments of this nature as ‘allowances’ or ‘ex-gratia payments’. Although the names may sometimes be different, the considerations for a charity outlined in this guidance, still apply.