When an intermediary manages an ongoing activity on behalf of the charity, the intermediary should separate the funds it receives from the charity from its own. This means that the intermediary should keep the funds in a separate bank account or deduct them separately from other funds in its books and records. The Mediator`s books and records should contain sufficient detail to ensure that the charity`s funds can always be traced and accounted for. A charity can also act as a channel when it transfers resources to an affiliate or audône organization that is not a qualified Donee. In such cases, a charity and its partner may establish a written agreement that gives the impression that the affiliate is the charity`s agent. However, to determine whether a charity is acting as a channel in this situation, the rating agency can check whether the charity will be different: the facts of each situation will differ and it is not possible to give specific instructions in advance to cover all situations. If a charity has any questions, it should contact the charity`s management for support. A charity often hires an advisor to mediate when its own employees are unable to operate. It may use a contractor to provide goods or services. In these situations, a charity generally exercises management and control through an agreement with the advisor or contractor. When the rating agency assesses whether the transfer of non-monetary resources from a charity corresponds to its own activity test, it takes into account all relevant facts. At a minimum, the transfer must meet these three conditions: in order to meet the requirements of its own activities, a charity, when transferring resources to its intermediary, must manage and control the use of these resources. Footnote 13 This means that the charity must make decisions and set parameters for important activity-related issues, such as.B.: A charity`s resources include all of its physical and financial resources, as well as its collaborators and volunteers.
Footnote 5 One of the principles behind capacity building is that long-term solutions rarely result from a simple transfer of money to a group or community without ongoing support. As part of capacity building, a long-term relationship between a charity and its partner can lead to the partner taking over and the charity withdrawing its resources completely to leave the success of the project in the hands of the former partner.