Member Alert: Staying Vigilant About Unsolicited Fundraising and Funding Approaches

Charities Institute Ireland has recently been made aware of an unsolicited approach to one of our members involving an individual presenting themselves as a fundraising consultant and claiming to represent a foundation.

Questions subsequently arose about the organisation, its online presence and the individuals apparently associated with it.

While we are not making any determination about a particular individual or organisation, the incident is a timely reminder for charities to exercise caution when approached unexpectedly by consultants, foundations, potential funders or other third parties.

Fraudulent websites, invented professional profiles and impersonation can be increasingly convincing, and a professional-looking website or LinkedIn profile should not, on its own, be taken as evidence that an organisation is genuine.

How these approaches can work

One common form of scam begins with an unsolicited approach from someone presenting themselves as a fundraising consultant, adviser, intermediary or representative of a foundation.

The organisation may appear credible at first glance, with a professional-looking website, named staff, biographies, photographs and information about supposed funding programmes or previous activity.

The initial approach may involve an offer of access to significant grant funding, major donors or an apparently exclusive funding opportunity.

Once trust has been established, the charity may then be asked to provide further information, enter into an agreement or make a payment before funding can be released. These payments can be described as administration charges, legal costs, registration fees, due diligence costs, consultancy retainers or other processing fees.

In other cases, an individual may offer to manage fundraising or crowdfunding on behalf of a charity or beneficiary, with unclear arrangements around fees, ownership of the campaign, control of donor data or how much of the money raised will ultimately reach the intended cause.

Not every unsolicited approach is suspicious, and legitimate consultants and funders may contact charities directly. However, an unexpected offer of substantial funding combined with pressure, limited independently verifiable information or requests for payment should always prompt additional checks.

Some warning signs

Members should be particularly cautious where an approach involves:

• An unsolicited offer of significant funding or access to major donors.
• A foundation, consultancy or organisation that has little independently verifiable history.
• Individuals whose professional backgrounds cannot be independently confirmed.
• Recently created or unusually limited websites and social media profiles.
• Pressure to move discussions forward quickly.
• Requests to keep a proposed opportunity confidential.
• Requests for upfront payments, administration charges, legal fees or other payments before funding can be released.
• Requests for banking information, identification documents or other sensitive organisational information at an unusually early stage.
• Email addresses, telephone numbers or contact details that do not correspond with information available from independent sources.

None of these factors in isolation necessarily means that an approach is fraudulent, but they should prompt further checks.

Verify independently

Before entering into an agreement or sharing sensitive information, charities should carry out proportionate due diligence.

Where an organisation claims to be an Irish registered charity, check the Charities Regulator's Register of Charities. Where it claims to be an Irish company or registered business, information can be checked independently through the Companies Registration Office (CRO).

For organisations based overseas, check the appropriate company or charity regulator in the country in which they claim to operate.

Other sensible checks include:

• Searching independently for the organisation rather than relying exclusively on links provided in an email.
• Looking at how long its website and professional profiles appear to have existed.
• Checking the employment history and connections of the people involved.
• Looking for independent references to the organisation, its grants, clients, trustees or leadership.
• Contacting organisations they claim to have worked with.
• Where a well-known organisation, foundation or individual is referenced, contacting them through independently sourced contact details to verify the relationship.
• Discussing an unusual approach internally with senior colleagues before responding.

The Charities Regulator advises charity trustees to have appropriate systems and processes in place to prevent or detect fraud and the loss of charitable funds.

If something doesn't feel right

Don't feel pressured to respond immediately.

Avoid transferring money, clicking unfamiliar links or providing banking, identity or other sensitive information while you investigate.

Keep copies of correspondence, websites, email addresses and other relevant information.

If you believe that your organisation has been the victim of an online scam or fraud, An Garda Síochána advises reporting it to your local Garda station and retaining relevant evidence including emails, account information and online material.

We would encourage members to discuss any suspicious or unusual approaches with colleagues and trusted peers, including through Cii’s Peer Networks where appropriate. Members are also welcome to make Cii aware of approaches they have concerns about. Sharing experiences across the sector can help organisations sense-check situations, identify common patterns and ensure others are better equipped to recognise similar approaches.

The intention of this notice is not to discourage charities from engaging with new consultants, funders or partners. New relationships are an important part of fundraising. It is simply a reminder that a small amount of independent verification at the outset can help protect your organisation, its staff and its charitable funds.