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