HCR Expenses Policy

Background

This policy outlines the procedures and guidelines for the reimbursement of expenses and purchases incurred by Trustees, Members, Staff, Associates, and Volunteers of Humanity Care Relief (HCR) while promoting and supporting the delivery of HCR’s objectives.

Applicability

This policy applies to all individuals involved with HCR, including Trustees, Members, Staff, Associates, and Volunteers. Employees must also comply with relevant taxation laws concerning such payments.

Expenses vs Remuneration

It is crucial to ensure that the reimbursement of out-of-pocket expenses is not, and does not appear to be, a disguise for income payments (remuneration) to the recipient(s).

Expenses vs Purchases

Claims for the reimbursement of purchases made personally and properly on behalf of HCR are not counted as expenses. Instead, they are accounted for as part of HCR’s general expenditure.

Waiving Expenses (Donating Expenses as “Gifts-in-Kind”)

Supporters who waive their expense claims inadvertently create difficulties, as these waived expenses cannot be reflected in HCR’s accounts, potentially impacting funding applications and the ability to claim Gift Aid. Supporters considering waiving their claims should first review the section on Deferred Reimbursement of Expenses & Purchases.

Changes to the Policy

HCR reserves the right to change its Expenses Policy to maintain alignment with current best practices and meet organizational needs. HCR will provide advance notice of any changes whenever possible but reserves the right to implement changes with minimal or no notice when necessary.

Policy

Scope

Employees and volunteers are entitled to be reimbursed for all travelling and other expenses actually, necessarily, reasonably, and incidentally incurred in carrying out their duties, upon submission of an authorized claim form with relevant receipts. However, employees cannot claim travel expenses from home to their normal place of work.

Definitions:

1.
Actually: The claimant must have genuinely incurred the expense.
2.
Necessary: The expenditure must have been essential for the charitable activity.
3.
Reasonable: The cost must represent value for money and be competitive with similar alternatives.
4.
Incidental: Expenses must be directly related to HCR activities and not influenced by personal reasons.

Authorisation

Expenses and purchases must be pre-approved as part of HCR’s agreed and budgeted program of activities. Claims must be submitted using HCR’s approved forms, accompanied by documentary evidence.

Gifts in Kind (Waived or Unclaimed Expenses/Purchases)

HCR appreciates the generosity of those who choose not to claim reimbursement. However, unclaimed expenses can result in under-reporting of the true costs of HCR’s activities and supporters’ generosity, affecting funding opportunities and Gift Aid eligibility. Therefore, HCR encourages all eligible supporters to claim their expenses and, if desired, donate the reimbursement back to HCR.

Procedures: Reimbursement of Expenses & Purchases

1. Submitting Claims:
Claims must be submitted on HCR’s approved forms, with supporting receipts.
Incomplete or undocumented claims may be returned or rejected.
Claims must be submitted within 30 days of the expense.
2. Travel Expenses:
Public transport should be used where possible.
Private vehicle use is allowed with mileage allowances paid by HCR, provided the vehicle is properly insured and maintained.
3. Subsistence:
Reimbursement is available for subsistence costs when on authorized HCR business away from the normal place of work for more than four consecutive hours.
4. Telephone Calls:
Reimbursement is available for the actual costs of necessary calls made during HCR business.
5. Other Expenses:
Other expenses not detailed may be reimbursed with prior approval from the Treasurer or a designated representative.

Reimbursement Process

Claims are vetted for compliance with charity and taxation laws and HCR policies before approval. Valid claims are processed and reimbursed typically via BACS transfer, cheque, or cash for small amounts.

“Waiving” Reimbursed Expenses/Purchases as a Gift-Aided Donation

According to HM Revenue & Customs guidelines, to be eligible for Gift Aid, expenses must first be reimbursed by HCR, and the claimant must then make a separate donation. Deferred reimbursement is available for those who wish to donate their reimbursed expenses as a gift.

Procedure:

1.
Claimants can tick the “Defer Reimbursement” box on the form.
2.
HCR will reimburse deferred claims at the end of the financial year.
3.
The claimant can then donate the reimbursement back to HCR, allowing the claim of Gift Aid if applicable.

Save Lives with Your Sadaqah & Zakat

We are a UK-based international relief and development charity. Inspired by Islamic teachings of empathy, generosity, and selflessness, we focus on alleviating poverty and suffering across the world. We operate a 100% Zakat Policy, which means every single penny of your Zakat will go to the victims of poverty, wars, and natural disasters.

Before you support our Food Appeal, Water Appeal, Gaza Emergency Appeal, Syria Emergency Appeal, Pakistan Floods Appeal, or any Emergency Appeal, remember to make the intention that you are donating for the sake of Allah first and helping your fellow Muslim brothers and sisters second. This is very important because as Muslims, whatever act of worship we do, we do it for the sake of Allah.

Along with our emergency appeals, we are working on some amazing projects which will, Insha’Allah, bring prosperity to many Muslim homes from around the world. Donate your Sadaqah and Zakat to our projects like Build a Masjid, Livelihoods for the Poor, Sponsor a Widow, Sponsor an Orphan, Sponsor a Nikah, Donate a Sewing Machine, or help educate the Ummah by donating towards education projects, Sponsoring a Hafiz, Sponsoring a Child in Education, or supporting young people in university and Islamic education. Donate with confidence, Insha’Allah, every penny of your donation is your Amanah, and we will try our best to spend it on people who are in need.

Every year, we as Muslims celebrate two seasons the most: one, Ramadan, and two, the first ten days of Dhul Hijjah. During these blessed days, we put all our efforts into pleasing Allah سُبْحَانَهُ وَتَعَالَى by performing good deeds. Here at HCR, we provide you with the platform to perform an important act of worship: charity. In Ramadan, you can donate to the Ramadan Food Appeal, and Ramadan Zakat Appeal, Donate Your Fidyah, Donate Your Fitrana, and Pay Your Kaffarah for Breaking Oath or Breaking Fast, especially during the blessed nights of Laylatul Qadr. In Dhul Hijjah, we are here to help fulfil your duty of performing Qurbani. Whichever cause you choose, choose it with confidence. Insha’Allah.