When a fundraising appeal raises more than expected what should trustees do?
Stuart McKay · Posted on: March 12th 2026 · read
Charities frequently launch fundraising appeals for specific projects or activities. But what happens if the appeal is more successful than anticipated and raises more than the project will cost?
Where donations are given for a specific purpose, they will usually constitute restricted funds. Trustees must ensure that these funds are applied only for the purpose for which they were given. This makes the wording of an appeal critically important.
Including a clearly drafted secondary purpose within the original appeal can provide flexibility if the target is exceeded. For example, trustees might state that any surplus funds will be applied to a closely related charitable activity. Without such wording, trustees cannot simply reallocate excess funds at their discretion.
Where no secondary purpose has been specified, the Charity Commission guidance sets out the steps trustees must follow:
- Trustees must identify an appropriate new charitable purpose.
- A formal resolution must be passed in accordance with the charity’s governing document.
- The decision and the trustees’ reasoning must be properly minuted.
- Where the value of the donations raised in excess of an appeal exceeds £1,000, Charity Commission authority may be required before the funds can be applied for the new purpose.
Trustees should ensure the wording of fundraising appeals is appropriate at the outset. Taking the time to include an appropriate alternative use of funds can prevent administrative burden and regulatory involvement later. Good governance starts before the appeal is launched.
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