Can I Accept Overseas Donations

Introduction

Global fundraising has become easier than ever. With online platforms and international campaigns, charities can now attract donations from supporters all over the world. However, accepting overseas donations brings additional legal, financial, and reputational responsibilities.

UK charities must comply with anti-money laundering regulations, tax laws, and Charity Commission guidance when handling international funds. Knowing how to manage these donations properly helps protect both your charity and its donors.

Can UK charities accept overseas donations

Yes. UK charities are allowed to accept donations from overseas individuals, companies, or organisations, provided that:

The funds come from a legitimate source.

The money is used for charitable purposes within the charity’s objectives.

The charity can demonstrate proper due diligence on the donor.

There are no blanket restrictions on receiving overseas funds, but trustees must take reasonable steps to confirm the donation’s origin and legality.

Why due diligence matters

The Charity Commission expects trustees to protect their charities from the risk of financial crime, including money laundering, terrorism financing, or fraud.

If a charity accepts money from an unknown or high-risk source, it could inadvertently become involved in illegal activity. This can lead to investigation, fines, or serious reputational damage.

Due diligence helps charities:

Confirm the donor’s identity and background.

Understand where the funds originate.

Ensure that accepting the money will not compromise the charity’s integrity.

Comply with UK anti-money laundering and counter-terrorism financing laws.

Key checks before accepting overseas donations

1. Verify the donor’s identity

Ask for the donor’s full name, address, and contact details. If the donor is an organisation, request registration details, website information, and proof of business activity.

High-value donations may require additional verification such as:

A copy of a passport or company registration certificate.

Confirmation of the donor’s relationship with the charity.

Evidence that the funds are from a legitimate source.

2. Understand the source of funds

If the donation is unusually large or from a country with weak financial controls, take extra care to establish where the money came from. Politely ask the donor how they earned or acquired the funds.

If the donor cannot provide a clear explanation or if the information seems inconsistent, trustees should consider declining the donation.

3. Assess the purpose and expectations

Make sure the donor’s intentions align with your charity’s mission. If the donor requests that funds be used for a specific purpose, check that the activity fits within your charitable objectives.

Never agree to conditions that conflict with your charity’s values, create political bias, or benefit the donor personally.

4. Record all information

Keep detailed written records of your due diligence checks. Note the donor’s details, background research, and the reasons for accepting the donation.

This documentation demonstrates to regulators that the charity has acted responsibly and transparently.

Handling overseas payments

When receiving money from abroad, use secure and traceable payment methods such as bank transfers. Avoid accepting large cash donations or anonymous transfers, as these can be difficult to verify.

To protect your charity:

Ensure payments come from accounts in the donor’s name.

Keep copies of payment confirmations and bank statements.

Use accounts in the charity’s name, not personal trustee accounts.

Notify your bank in advance if you expect large or regular international transfers.

Many banks carry out their own compliance checks on overseas payments, especially from high-risk regions. Having proper documentation ready helps avoid delays.

Currency conversion and fees

If donations are made in a foreign currency, your bank will convert them into pounds sterling. Check in advance what fees apply, as conversion and international transfer costs can reduce the final amount received.

Charities that expect frequent overseas donations may benefit from opening a multi-currency account to manage funds more efficiently.

Tax implications

Gift Aid cannot be claimed on donations made by individuals who are not UK taxpayers. This means that overseas donors are usually not eligible for Gift Aid unless they pay UK Income or Capital Gains Tax.

However, some donors based abroad may still claim tax relief in their own countries if the UK charity has an international fundraising partnership or equivalent local registration.

Your charity should clearly explain to overseas supporters whether Gift Aid or local tax benefits apply before they donate.

Working with overseas fundraising platforms

Online fundraising platforms can simplify international donations, but they also introduce compliance responsibilities. Before using a third-party platform, check that it:

Operates securely and meets data protection standards.

Conducts its own checks on donors and payments.

Transfers funds directly into your charity’s bank account.

Platforms such as PayPal Giving Fund, JustGiving, and GlobalGiving handle currency conversion automatically, but fees and payout times can vary.

Reporting and transparency

Trustees must include overseas income in the charity’s annual accounts and report it to the Charity Commission. Be clear about:

The total amount received from foreign donors.

Any conditions attached to donations.

How funds were used in line with the charity’s objectives.

Transparency helps reassure both regulators and the public that the charity is managing international funds responsibly.

When to seek professional advice

If your charity receives large or complex overseas donations, especially from high-risk countries, seek guidance from:

The Charity Commission.

Your accountant or legal adviser.

HMRC if the donation involves tax considerations.

Professional advice helps ensure compliance with anti-money laundering regulations and prevents accidental breaches of charity law.

Common mistakes to avoid

Accepting large donations without verifying the donor’s identity.

Failing to record how due diligence checks were carried out.

Using personal bank accounts to receive international payments.

Claiming Gift Aid on donations from non-UK taxpayers.

Ignoring unusual payment patterns or unclear funding sources.

Avoiding these errors protects the charity’s reputation and ensures full regulatory compliance.

Conclusion

UK charities can accept overseas donations, but trustees must handle them carefully and transparently. Conducting due diligence, maintaining accurate records, and ensuring funds come from legitimate sources are essential steps in safeguarding your organisation.

By following Charity Commission guidance, using secure payment methods, and keeping donors informed, your charity can confidently welcome international support while upholding the highest standards of integrity and accountability.