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Version 1.1 by Robert Schaub on 2025/12/21 14:01
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1 = Large Donations Policy & Strategy =
2
3 **Version:** 1.0 | **Last Updated:** December 21, 2025 | **Status:** DRAFT
4
5 ----
6
7 == Executive Summary ==
8
9 {{info}}
10 **Core Principle:** No single donor may finance more than **20% of annual budget** (exception: competitive public funding programs like Innosuisse).
11
12 **Why:** Editorial independence is the foundation of fact-checking credibility. Large donations create perception of bias, even when none exists.
13
14 **IFCN Requirement:** International Fact-Checking Network demands full funding transparency and proven independence.
15 {{/info}}
16
17 **Quick Decision Guide:**
18
19 * **CHF 5K-80K** → Accept (if <20% budget) + Publish donor name
20 * **CHF 80K-200K** → Spread over years OR reduce to 20%
21 * **CHF 200K-1M** → Propose foundation model
22 * **>CHF 1M** → Endowment structure only (capital separate, only returns flow)
23
24 **Always Reject:**
25 * Political parties
26 * Media companies (Facebook, Google News, etc.)
27 * Donor demands editorial control
28 * Pharma companies (frequent fact-check subject)
29 * Donors involved in active fact-checks
30
31 ----
32
33 == 1. Legal Framework (Switzerland) ==
34
35 === Tax Deductibility for Donors ===
36
37 **Federal Tax:**
38 * Maximum deductible: 20% of net income
39 * Example: Income CHF 500,000 → max. CHF 100,000 deductible
40
41 **Cantonal Taxes:**
42 * Most cantons: 10-20%
43 * Zurich: 20%
44 * Zug: 20%
45 * Geneva: 20%
46
47 **Example:** Donor with CHF 1M income can deduct max. CHF 200,000 (20%). If they donate CHF 500,000, only CHF 200,000 is tax-deductible.
48
49 === No Legal Limits ===
50
51 Swiss law has NO cap on donation amounts. Donors can give CHF 1M, 5M, 10M - but only a portion is tax-deductible.
52
53 === Anti-Money Laundering ===
54
55 For very large donations (CHF 100,000+):
56 * Verify donor identity
57 * Document source of funds
58 * Report suspicious transactions to MROS
59
60 ----
61
62 == 2. IFCN/EFCSN Requirements ==
63
64 {{warning}}
65 **IFCN Code of Principles requires:**
66
67 **Principle 2 - Funding Transparency**
68 All fact-checking organizations must be transparent about funding sources.
69
70 **Principle 3 - Methodology Transparency**
71 Organizations must explain their fact-checking methodology.
72
73 **Principle 4 - Open & Honest Corrections**
74 Organizations must have transparent corrections policy.
75 {{/warning}}
76
77 **What IFCN requires:**
78 1. Publish all funders above threshold
79 2. Prove financial independence
80 3. No conflicts of interest
81 4. Editorial firewall - no influence on fact-checks
82
83 **Typical thresholds among IFCN members:**
84 * Publish donors above CHF 1,000-5,000
85 * Extra transparency for donors above CHF 10,000-50,000
86 * Written editorial firewall agreements
87
88 **Examples from IFCN Members:**
89
90 **Full Fact (UK)**
91 * Publishes all donors over £1,000
92 * Policy: "No funder has any influence over our fact-checking"
93
94 **FactCheck.org (USA)**
95 * Publishes all donors over $1,000
96 * Maximum: Single donor may NOT finance >10% of budget
97
98 **Correctiv (Germany)**
99 * Publishes all donors over €5,000
100 * Rule: No single source may exceed 20% of budget
101
102 ----
103
104 == 3. Risk Analysis ==
105
106 **Credibility Risks by Donation Amount:**
107
108 |=Amount|=Risk Level|=Notes
109 |CHF 10K-50K|**Low**|No problem with transparency
110 |CHF 50K-200K|**Medium**|Needs clear governance rules
111 |CHF 200K-1M|**High**|Could be >20% budget → dangerous
112 |>CHF 1M|**Very High**|Almost certainly >50% → toxic for credibility
113
114 **Specific Risks:**
115
116 {{error}}
117 **Risk 1: Perceived Dependence**
118 Even if untrue, perception damages credibility. Public thinks: "FactHarbor won't fact-check against main donor."
119 **Solution:** Transparency + Editorial Firewall
120 {{/error}}
121
122 {{error}}
123 **Risk 2: Actual Influence**
124 Donor tries to influence fact-checks. Example: "I donate CHF 500K, but don't fact-check my company."
125 **Solution:** Clear contracts, no editorial rights, return donation if violated
126 {{/error}}
127
128 {{warning}}
129 **Risk 3: IFCN/EFCSN Rejection**
130 Too much dependence on single donor → IFCN could deny signatory status, EFCSN could reject membership
131 {{/warning}}
132
133 {{warning}}
134 **Risk 4: Partnership Problems**
135 dpa, SRF, Full Fact might refuse cooperation if they question independence
136 {{/warning}}
137
138 ----
139
140 == 4. Solution: The 20% Rule ==
141
142 {{success}}
143 **Implement These Rules:**
144
145 **1. Publication Threshold**
146 * Publish all donors above **CHF 5,000** (name, amount, optional purpose)
147 * Publication: On website and in annual report
148
149 **2. Maximum Rule (CRITICAL!)**
150 * Single donor maximum **20% of annual budget**
151 * Example: Budget CHF 500K → max. CHF 100K per donor
152 * Exception: Multi-year commitments with exit strategy
153
154 **3. Editorial Firewall**
155 * Written declaration: Donor has NO say in fact-checks
156 * In donation contract: Explicitly stated
157 * If violated: Return donation immediately
158
159 **4. Diversification Goal**
160 * Minimum 5 funding sources
161 * No source >30% over 2+ years
162 {{/success}}
163
164 **Add to Bylaws:**
165
166 {{code language="text"}}
167 § 10 - Financing and Donations
168
169 1. The association finances itself through:
170 - Grants (Innosuisse, Gebert Rüf, etc.)
171 - Donations from individuals and organizations
172 - Services (within nonprofit regulations)
173
174 2. Transparency:
175 a) All funders above CHF 5,000 are published annually
176 b) Annual report with detailed financial overview
177
178 3. Independence:
179 a) No single funder may finance more than 20% of annual budget
180 b) Donors have NO say in fact-checks whatsoever
181 c) Editorial Firewall must be in all agreements
182
183 4. Exceptions:
184 Competitive public funding (Innosuisse, SNF, etc.) exempt
185 from 20% rule when secured through academic partner.
186 {{/code}}
187
188 ----
189
190 == 5. Foundation Model (for CHF 1M+ donations) ==
191
192 When someone wants to donate very large amounts:
193
194 **Option 1: Separate Foundation**
195 * Donor establishes own foundation with CHF 1M+
196 * Foundation funds FactHarbor long-term at <20% annually
197 * FactHarbor remains independent
198 * Advantage: Foundation can fund other projects too
199
200 **Option 2: Endowment Model**
201 * CHF 2M+ as capital stock in FactHarbor Foundation
202 * Only returns (3-5%) flow to association → CHF 60-100K/year
203 * Advantage: Sustainable, never >20% of budget
204
205 **Option 3: Matching Fund**
206 * Donor matches other donations up to CHF 500K
207 * Example: For every CHF 1 donated, major donor gives CHF 1
208 * Advantage: Encourages diversification automatically
209
210 ----
211
212 == 6. Governance Safeguards ==
213
214 === Independent Ethics Advisory Board ===
215
216 **Establish:**
217 * 3-5 independent experts (journalism, academia, ethics)
218 * Task: Monitor independence
219 * Authority: Can reject donations if conflict of interest
220
221 === Donation Rejection Policy ===
222
223 {{error}}
224 **Always Reject:**
225 * Political party → REJECT
226 * Media company → Only with strict firewall (critical!)
227 * Government direct grant (except competitive public funding) → Critically review
228 * Donor demands editorial control → REJECT
229 * Donor involved in active fact-checks → REJECT
230 {{/error}}
231
232 **Examples:**
233
234 ✗ Meta/Facebook donates CHF 500K → **REJECT** (fact-check subject!)
235 ✗ Political party donates CHF 100K → **REJECT**
236 ✅ Philanthropic foundation donates CHF 100K → **OK** (with transparency)
237 ✅ Tech company outside media CHF 50K → **OK** (e.g., SAP)
238
239 === Conflict Management Process ===
240
241 **When large donation arrives:**
242
243 **Step 1: Due Diligence (Board)**
244 * Who is the donor?
245 * Any conflicts of interest?
246 * Is source of funds clear?
247
248 **Step 2: Ethics Board Review**
249 * Automatic for >CHF 50,000
250 * Recommendation: Accept / Reject / Conditions
251
252 **Step 3: Transparency Protocol**
253 * Document donation
254 * Sign firewall agreement
255 * Prepare publication
256
257 **Step 4: Annual Review**
258 * Is diversification adequate?
259 * Does donor exceed 20% threshold?
260 * Exit strategy needed?
261
262 ----
263
264 == 7. Implementation Steps ==
265
266 === Before First Large Donation ===
267
268 **Week 1-2: Amend Bylaws**
269 1. Add § Transparency & Financing
270 2. Codify 20% rule
271 3. Define Editorial Firewall
272 4. Get General Assembly approval
273
274 **Week 3-4: Prepare Documentation**
275 1. Donation contract template (with firewall clause)
276 2. Donor due diligence form
277 3. Rejection letter template
278
279 **Month 2: Website**
280 1. Create "Our Funding" page
281 2. List all funders >CHF 5,000
282 3. Explain independence principles
283
284 === When Donation Arrives ===
285
286 **Step 1: Initial Conversation**
287 Clarify: Motivation? Expectations? Accept 20% rule? Accept transparency?
288
289 **Step 2: Due Diligence**
290 Check: Conflict of interest? Legal source? Exceeds 20%? Political/media connections?
291
292 **Step 3: Ethics Board** (for >CHF 50K)
293 Consult 2-3 external advisors minimum
294
295 **Step 4: Decision**
296
297 **Accept** (if all criteria met):
298 * Sign contract with firewall
299 * Receive donation
300 * Publish on website
301
302 **Reduce:**
303 * Example: Donor wants CHF 200K, budget is CHF 500K
304 * Proposal: Accept CHF 100K (=20%) OR spread over 2 years
305
306 **Restructure** (Foundation Model):
307 * Example: Donor wants CHF 2M
308 * Proposal: Separate foundation gives CHF 60K/year
309
310 **Reject:**
311 * Irresolvable conflict of interest
312 * Donor wants editorial control
313 * Unclear source
314 * Political party/media company
315
316 ----
317
318 == 8. Example Scenarios ==
319
320 === Scenario 1: Tech Billionaire - CHF 500,000 ===
321
322 **Context:**
323 * FactHarbor budget: CHF 400K
324 * Donor: Swiss tech entrepreneur
325 * Problem: CHF 500K = 125% of budget → TOO HIGH!
326
327 **Solution Options:**
328
329 {{success}}
330 **Option A: Reduce to CHF 80K (20%)**
331 "Thank you! We can accept maximum CHF 80K to maintain independence. Would you like to spread this over multiple years?"
332
333 **Option B: Foundation Model**
334 "Would you establish a foundation with CHF 500K that funds FactHarbor long-term (CHF 15-25K/year)?"
335
336 **Option C: Matching Fund**
337 "Could you match every donation up to CHF 250K? This helps us build diverse funding."
338 {{/success}}
339
340 {{error}}
341 **DO NOT:** Simply accept CHF 500K → Credibility destroyed!
342 {{/error}}
343
344 === Scenario 2: Pharma Company - CHF 100,000 ===
345
346 **Context:**
347 * Donor: Novartis/Roche
348 * Problem: Pharma is frequent fact-check subject!
349
350 {{error}}
351 **REJECT!**
352
353 Rejection letter:
354 "Thank you for your interest. Unfortunately, we cannot accept as pharmaceutical companies are regularly subject to fact-checks. We must avoid any appearance of conflict of interest (IFCN Code of Principles). Our editorial independence is non-negotiable."
355 {{/error}}
356
357 === Scenario 3: Anonymous Donor - CHF 50,000 ===
358
359 **Context:**
360 * Private person wants anonymity
361 * Problem: Contradicts IFCN transparency
362
363 **Solution:**
364
365 {{success}}
366 **Option A: Internal ID, Public Anonymous**
367 "We must know your identity internally (due diligence), but can list you publicly as 'Private individual, CHF 50K'."
368
369 **Option B: Fully Transparent**
370 "For IFCN compliance, we must publish all donors >CHF 5K. Can we list you as '[Name], CHF 50K'?"
371
372 **Option C: Below Threshold**
373 "Would you donate CHF 4,500? Then it's not published."
374 {{/success}}
375
376 {{error}}
377 **DO NOT:** Accept CHF 50K anonymously without internal verification → AML risk, IFCN violation
378 {{/error}}
379
380 === Scenario 4: Government - CHF 200,000 ===
381
382 **Context:**
383 * Swiss federal office funding
384 * Problem: Government as funder is critical!
385
386 **Distinguish:**
387
388 {{success}}
389 **Public Funding Programs (OK)**
390 * Innosuisse: ✅ (competitive, scientifically reviewed)
391 * SNSF: ✅ (peer-reviewed)
392 * Structured programs with academic partner: ✅
393 {{/success}}
394
395 {{error}}
396 **Direct Government Grants (CRITICAL)**
397 * Direct from minister/council: ❌ REJECT
398 * "Government funds fact-checker" → Toxic!
399 {{/error}}
400
401 ----
402
403 == 9. Donation Contract Template ==
404
405 {{code language="text"}}
406 DONATION AGREEMENT
407
408 FactHarbor Association ("Recipient")
409 [Donor Name] ("Donor")
410
411 § 1 - Donation
412 Amount: CHF [AMOUNT]
413 Purpose: General activities ☐ / Specific project ☐
414
415 § 2 - Editorial Firewall (CRITICAL!)
416 The Donor acknowledges:
417 a) NO say in selection, execution, or evaluation of fact-checks
418 b) Recipient may fact-check ALL topics, including Donor
419 c) Donor will not influence editorial decisions
420 d) Violation → Recipient may return donation
421
422 § 3 - Transparency
423 a) Published on website (name/amount) if >CHF 5,000
424 b) Mentioned in annual report
425 ☐ Full name ☐ "Private individual" (only if <CHF 50K)
426
427 § 4 - Tax Receipt
428 Recipient issues receipt. Recipient is nonprofit.
429
430 § 5 - No Quid Pro Quo
431 No expectation of services in return.
432
433 § 6 - Return Right
434 Recipient may return if: conflict discovered, violates 20% rule,
435 or other problems.
436
437 § 7 - Law: Swiss law, jurisdiction [LOCATION]
438
439 [DATE]
440 _____________ _____________
441 Donor President FactHarbor
442 {{/code}}
443
444 ----
445
446 == 10. Monitoring & Reporting ==
447
448 === Quarterly Review ===
449
450 **Every Quarter:**
451 * List all donations >CHF 5K
452 * Calculate percentage of each donor
453 * Check if anyone >20%
454 * Identify risk donors
455 * Update website
456
457 === Annual Report ===
458
459 {{info}}
460 **Publish:**
461
462 **1. Financial Overview**
463 * Total revenue
464 * Breakdown: Grants / Major donations / Small donations / Services
465
466 **2. All Funders >CHF 5K**
467 * Name, Amount, Percentage of budget
468
469 **3. Independence Statement**
470 "FactHarbor is independent. No funder influences our fact-checks. We follow IFCN Code of Principles."
471 {{/info}}
472
473 === Website: "Our Funding" Page ===
474
475 **Include:**
476
477 **Principles:**
478 * 20% Rule
479 * Editorial Firewall
480 * Transparency (publish >CHF 5K)
481 * Diversification (min. 5 sources)
482
483 **Current Funders (example):**
484
485 **Institutional Funding (65%)**
486 * Innosuisse Innovation: CHF 400,000
487 * ETH Zurich Partnership: CHF 50,000
488
489 **Foundations & Donations (25%)**
490 * Foundation A: CHF 80,000
491 * Individual B: CHF 50,000
492 * Company C: CHF 20,000
493
494 **Small Donations (10%)**
495 * 234 donors: CHF 65,000
496
497 **Total: CHF 665,000**
498
499 ----
500
501 == 11. Long-Term Strategy ==
502
503 **Year 1-2: Grants First**
504 * 70% Institutional grants
505 * 20% Foundations/Medium donations
506 * 10% Small donations
507
508 **Year 3-5: Diversify**
509 * 40% Institutional grants
510 * 30% Foundations/Partnerships
511 * 20% Earned income (services, licensing)
512 * 10% Small donations
513
514 **Year 5+: Sustainable**
515 * 30% Endowment returns
516 * 30% Institutional grants
517 * 20% Earned income
518 * 20% Many small donations
519
520 **Diversification Steps:**
521 1. Combine multiple grants (Innosuisse, Gebert Rüf, Google, Prototype Fund)
522 2. Corporate partnerships (tech companies, NOT media) - each <CHF 50K
523 3. Small donor campaigns (1,000 × CHF 50 = CHF 50K)
524 4. Earned income (workshops, API licensing, consulting)
525
526 ----
527
528 == Summary & Quick Reference ==
529
530 === ✅ DOs ===
531
532 {{success}}
533 1. Enforce 20% rule (exception: competitive public funding)
534 2. Transparency: Publish all donors >CHF 5K
535 3. Editorial Firewall: Always in writing
536 4. Due Diligence: Verify donor identity
537 5. Ethics Board: Consult for >CHF 50K
538 6. Diversify: Minimum 5 sources
539 7. Monitor: Quarterly review
540 {{/success}}
541
542 === ❌ DON'Ts ===
543
544 {{error}}
545 1. NEVER >20% from one donor
546 2. NEVER political parties
547 3. NEVER media companies
548 4. NEVER accept editorial control
549 5. NEVER without written firewall
550 6. NEVER without due diligence
551 7. NEVER hide donors (>CHF 5K)
552 {{/error}}
553
554 === Standard Response to Large Donors ===
555
556 {{code language="text"}}
557 "Thank you for your interest in supporting FactHarbor!
558
559 For credibility as an independent fact-checking organization,
560 no single funder may finance more than 20% of our budget
561 (IFCN Code of Principles).
562
563 With our current budget of CHF [X], we can accept maximum
564 CHF [20%] as direct donation.
565
566 Alternative models:
567 - Distribution over multiple years
568 - Establishing supporting foundation
569 - Matching fund model
570
571 Your support means a great deal. We're confident we can find
572 a solution that matches your intent while preserving our
573 independence."
574 {{/code}}
575
576 === Checklist Before Accepting ===
577
578 {{code language="text"}}
579 □ Amount <20% of annual budget?
580 □ NOT media company?
581 □ NOT political party?
582 □ NOT involved in active fact-checks?
583 □ Source clear and legal?
584 □ Contract with firewall ready?
585 □ Publication planned?
586 □ Ethics board consulted (>CHF 50K)?
587 □ Board approved?
588 □ Monitoring system ready?
589
590 All checked? → ACCEPT ✅
591 {{/code}}
592
593 ----
594
595 **Related Pages:**
596 * FactHarbor Bylaws
597 * Funding Sources
598 * IFCN Signatory Application
599 * Governance Structure
600 * Transparency Policy
601
602 **Document Owner:** Board of Directors | **Review:** Annual
603
604 ----
605
606 **For Questions:**
607 * Legal counsel for contracts
608 * IFCN for best practices
609 * Other fact-checkers for experience