Ethical fundraising policy
1. Introduction: The Royal Society of Edinburgh (RSE) is Scotland’s National Academy, established in 1783 to advance learning and useful knowledge. As a registered charity (SC000470), the RSE seeks to maintain the highest standards of ethics and integrity in all its operations, including the procurement and management of funding. This ethical fundraising policy outlines the principles, standards, and processes by which RSE ensures that all fundraising activities are conducted in a manner that upholds its charitable status, aligns with its investment policy, and reflects the core values articulated in its statement of ethical principles.
2. Scope: this Policy applies to the “RSE Group”, defined for the purposes of this Policy as the collective of: the RSE, the RSE Scotland Foundation, and the Young Academy of Scotland (YAS). This policy therefore applies to all RSE Group staff, Fellows, Council members/Trustees engaged in fundraising scoping, and/or involved in securing or managing donations, grants, sponsorships, and philanthropic support on behalf of the RSE Group.
3. Purpose of this Policy is to: establish a framework that guides all of the RSE Group’s fundraising activities in an ethical and responsible manner. Further, the Policy will:
a. ensure compliance with relevant laws, regulations, and guidance, including the Charities and Trustee Investment (Scotland) Act 2005, the Code of Fundraising Practice, the Charities and Benevolent Fundraising (Scotland) Regulations 2009, and best practice as set out by the Office of the Scottish Charity Regulator (OSCR);
b. ensure consistency between fundraising efforts, the RSE’s Investment Policy, and the RSE’s overarching statement of ethical principles;
c. safeguard the RSE Group’s reputation and ensure that all sources of income align with its mission and values.
4. Guiding ethical principles: fundraising at the RSE Group will be guided by the following ethical principles derived from the RSE’s statement of ethical principles:
4.1 Respect: treat all donors and prospective donors with fairness, dignity, and respect; recognise and respect the autonomy of individuals in their philanthropic decision-making;
4.2 Integrity and transparency: represent the RSE Group’s mission, objectives, and needs truthfully; disclose clearly how funds will be used and report back transparently to donors;
4.3 Accountability: be accountable to donors, stakeholders and the wider public, through clear impact reporting as appropriate; provide clear mechanisms for feedback and any complaints about RSE Group’s fundraising practices (as per OSCR Fundraising Good Practice);
4.4 Honesty and non-deception: never mislead donors through omission, exaggeration, or manipulation; communication will be truthful and verifiable;
4.5 Responsibility and social awareness: consider carefully the ethical implications of accepting major donations, particularly from sources that may conflict with the RSE’s values, ethical statement and investment policy; avoid creating any funding relationships that may compromise (academic) independence, institutional integrity, or public trust.
5. Alignment with the investment policy statement: the ethical fundraising policy aligns with the RSE’s investment policy statement (2025), particularly with respect to: Responsible and sustainable practice; ESG considerations; Fossil fuels, Climate change, and “controversial weapons”.
5.1 Responsible and sustainable practice: the RSE Group’s fundraising strategy is built upon principles of sustainability and responsibility, including:
a. Accepting donations (either through receiving or soliciting) from donors who share the RSE Group’s commitment to addressing global challenges such as climate change and environmental sustainability, economic prosperity, and social cohesion and inclusion, as outlined in the RSE Group’s Strategic Plan 2023-2028, and who otherwise demonstrate positive ESG performance;
b. avoiding relationships with companies or individuals involved in harmful or controversial activities including tobacco, pornography, armaments (specifically “controversial weapons”), high-interest lending, gambling, and gifts that could give rise to reputation risk above the RSE Group’s appetite.
5.2 Environmental, social, and governance (ESG) considerations: just as the RSE Group applies ESG criteria in investment selection, so it will consider ESG factors when assessing potential donors and sponsors. Due diligence will be conducted to evaluate whether a major donor’s business operations and practices align with RSE Group’s values.
5.3 Fossil fuels, climate and exclusions: in line with RSE’s investment policy, the RSE Group will not actively solicit or accept funding from fossil fuel companies unless they can demonstrate a credible and significant transition plan toward renewable energy and carbon reduction technologies.
6. Due diligence and risk assessment: the RSE Group will perform appropriate due diligence for major donations, defined as including gifts over £10,000. Further, due diligence will consider (principally): the donor’s background, business activities, and public profile; financial transparency and legal standing; and compatibility with the RSE Group’s charitable objectives, investment restrictions (e.g., UNPRI and UK Stewardship Code adherence), and ethical principles. The RSE’s Investment Committee and/or Finance and Resources Committee and/or Council may be consulted on complex or borderline cases.
7. Acceptance and refusal of donations: the RSE Group will assess the ethical acceptability of every major gift based on the: source of the gift; nature and context of the donation; donor’s expectations and potential influence; and potential reputational risk to the RSE Group (in line with the RSE’s risk register). The RSE Group reserves the right to refuse a (major) donation where: acceptance would be unlawful; the gift is perceived to derive from activities contrary to/incompatible with the RSE’s values and policies; and/or the gift is intended to secure influence or advantage that are inconsistent with the RSE Group’s independence.
8. Confidentiality and anonymity: while the RSE Group supports donor privacy, anonymous gifts will be accepted only where there is no reasonable doubt regarding the integrity of the source. All donor information will be handled in accordance with the General Data Protection Regulation (GDPR).
9. Recognition and stewardship: the RSE Group is committed to acknowledging and stewarding gifts ethically and responsibly. Recognition will therefore not: convey an endorsement of the donor’s products, services, or policies; compromise the independence of the RSE Group’s research, policy outputs, public engagement programmes or public statements; and/or override branding approaches designed to maintain the RSE Group’s integrity and historical context.
10. Donor influence and academic freedom: all funding arrangements will protect the RSE Group’s independence and avoid donor influence over, as examples, research outcomes and public advocacy or policy positions. Specifically, donors will not be permitted to direct or control the RSE Group’s activities or operations, and all partnerships will include clear statements of independence.
11. Use of funds: funds will be used solely for the purpose for which they were given. The RSE Group will ensure that any restricted donations are earmarked and used accordingly, with transparent accounting practices. Unrestricted donations will be mobilised to advance the overall mission of the RSE.
12. Fundraising communications and campaigns: all fundraising materials (digital, print, or spoken) will: clearly identify the RSE/RSE Group as the beneficiary organisation; provide accurate and truthful information about the purpose of the appeal; and/or avoid applying undue pressure or exploiting vulnerability.
13. RSE Fellows involved in fundraising: Fellows who support fundraising campaigns will: be briefed on the RSE’s ethical fundraising guidelines (as these may differ from other organisations with which they are familiar); refrain from promising results, benefits, or outcomes that cannot be guaranteed; and/or disclose any potential conflict of interest as required by the RSE’s statement of ethical principles.
14. Conflicts of interest: in adherence to the RSE’s statement of ethical principles, any perceived or actual conflict of interest in fundraising must be declared. A conflict may arise if an individual stands to gain personally or professionally from a donation or sponsorship arrangement. All potential conflicts will be recorded and reviewed by the Director of Development and the Finance and Resourcing Committee where required.
15. Training and awareness: if considered appropriate, the RSE Group will provide training and resources to ensure that those involved in fundraising understand and apply ethical principles consistently. This is likely to include: periodic briefings on this policy, and proportionate training on data protection, conflict of interest, and ESG standards.
16. Reporting and review
16.1 Annual reporting: an overview of fundraising activities and income sources, any instances where major donations were declined on ethical grounds, and a summary of donor engagement and stewardship practices, will be included in the Statutory Annual Report to the Annual Statutory Meeting (ASM), and in its Annual Review for the wider public.
16.2 Policy review: this ethical fundraising policy will be reviewed every three years, or sooner if necessary, by the RSE’s Finance and Resources Committee. Any proposed amendments must be approved by the RSE Council.
17. Complaints and whistleblowing: donors or members of the public who are concerned about the RSE Group’s fundraising practices may lodge a formal complaint, with any complaints handled promptly, fairly, and confidentially. Internal concerns, including suspected unethical behaviour or conflicts of interest, will also be reported to the Finance and Resources Committee, escalated to Council if required.