CH207-Social Fund Management and Distribution Policy

Registration Number: {{org_field_registration_no}}

Social Fund Management and Distribution Policy

1. Purpose

The purpose of this policy is to provide clear guidance on the ethical, safe, and transparent management of social funds used to support community-based and wellbeing-enhancing activities for individuals receiving care from {{org_field_name}}. This includes how funds are collected, recorded, stored, and distributed, ensuring that all financial interactions are person-centred, voluntary, and compliant with Regulation 13 (Safeguarding from Abuse and Improper Treatment), Regulation 17 (Good Governance), and the Mental Capacity Act 2005.

2. Scope

This policy applies to all staff, volunteers, managers, and any other individuals involved in collecting, managing, or distributing funds on behalf of people supported by {{org_field_name}} in home care settings. It also applies to activities organised with the intention of enhancing the social and emotional wellbeing of individuals through group outings, celebrations, or shared events.

3. Related Policies

CH11-Safe Care and Treatment Policy
CH13-Safeguarding Adults from Abuse and Improper Treatment Policy
CH17-Infection Prevention and Control Policy
CH18-Risk Management and Assessment Policy
CH34-Confidentiality and Data Protection (GDPR)-Service User Policy
CH41-Managing Service User Finances Policy

4. Policy Statement

{{org_field_name}} is committed to promoting inclusion, wellbeing, and community participation for individuals receiving home care. Where a social fund is in operation, it is managed with the highest level of transparency, accountability, and service user involvement. Participation in the social fund is always voluntary, and all contributions or uses of the fund are subject to individual consent, audit, and proper documentation. The social fund must never be used to supplement business costs or benefit staff personally.

5. Key Principles and Implementation

a. Definition and Purpose of the Social Fund
A social fund refers to a pooled collection of voluntary financial contributions made by individuals receiving care, their families, or external donors, used solely for the benefit of those individuals. Funds may be used to support inclusive activities such as garden tea parties, community outings, arts and crafts sessions, birthday gifts, religious observances, or seasonal celebrations. All uses must align with the known preferences and cultural values of the people involved.

b. Voluntary Contributions
No individual is required to contribute to the social fund, and services or support will not be affected by participation or non-participation. Consent must be recorded, and all contributions must be made by cash, bank transfer, or authorised payment methods. Staff must not collect or accept anonymous or undocumented contributions.

c. Transparency and Record-Keeping
All social fund transactions must be recorded in a dedicated Social Fund Register, which includes dates, donor names, amount received, and how funds are used. A separate account or petty cash ledger is maintained for social fund purposes and reconciled monthly by a designated senior staff member. Receipts are obtained for all purchases, and balances are displayed or available for review by individuals and their representatives upon request.

d. Use of Funds and Distribution Decisions
Spending decisions are made in collaboration with the people supported, and all efforts are made to involve individuals in choosing activities or items funded. Where group activities are planned, individuals must be offered the opportunity to opt in or out. Where an individual benefits from the fund (e.g. birthday gift or outing), their consent must be obtained and recorded in their care plan. Any significant expenditure must be authorised by the Registered Manager {{org_field_registered_manager_first_name}} {{org_field_registered_manager_last_name}} and documented.

e. Protection from Financial Abuse
Staff are prohibited from suggesting, encouraging, or requiring donations or contributions from individuals. Financial safeguarding protocols apply to all fund-related interactions. Any suspicion of coercion, undue influence, or misappropriation must be reported to the Safeguarding Lead {{org_field_safeguarding_lead_name}}, {{org_field_safeguarding_lead_role}}, and investigated without delay. Funds must never be handled by a single staff member without a second person involved or overseeing.

f. Individual Benefit and Equity
Every effort must be made to ensure the social fund benefits all who choose to participate and that activities are inclusive, accessible, and culturally appropriate. Funds must not be disproportionately allocated to one person unless justified by a specific event (e.g. bereavement support, urgent need) and authorised with proper documentation and agreement from the relevant parties.

g. Auditing and Governance
The social fund is subject to internal audit annually or as part of quality reviews. Records are inspected to ensure that all income and expenditure align with policy expectations. Any discrepancies are investigated and reported to the Nominated Individual {{org_field_nominated_individual_first_name}} {{org_field_nominated_individual_last_name}}. Lessons learned are implemented through team meetings and policy updates.

h. Communication with Stakeholders
Clear information about the purpose, voluntary nature, and management of the social fund is provided to individuals, families, and professionals. All contributors are entitled to request a summary of transactions or how funds are being used. Updates may be shared through newsletters, posters, or support plans.

i. Closure or Change of Fund
If a social fund is to be closed or significantly changed, individuals and their representatives are consulted, and any remaining balance is used for the agreed benefit of those who contributed. Funds cannot be redirected to business use or carried over without explanation and consent.

6. Staff Training and Responsibilities

Staff involved in fund collection, recording, or activity planning are trained in financial safeguarding, consent, and GDPR. The Registered Manager is responsible for ensuring this policy is implemented consistently, with oversight from the organisation’s quality governance team.

7. Policy Review

This policy is reviewed annually or earlier if legislation, CQC guidance, or organisational procedures change. Updates are communicated to all relevant staff and stakeholders, and refresher training is provided if needed.

Responsible Person: {{org_field_registered_manager_first_name}} {{org_field_registered_manager_last_name}}
Reviewed on: {{last_update_date}}
Next Review Date: {{next_review_date}}
Copyright © {{current_year}} – {{org_field_name}}. All rights reserved.