Purchase terms for a charity buying goods and services

A charity buys with money it holds for a purpose, under conditions its funders set, in the name of a cause suppliers like to be associated with. Purchase terms have to reflect the trustees' duty to get value, flow down funder conditions, require safeguarding and data protection, control use of the charity's name, and allow the charity to end a contract when the funding behind it ends. I draft those terms for a fixed fee of £995, delivered in five working days.

Who this is for

Registered charities, community interest companies and not-for-profit organisations in England and Wales buying goods, services, consultancy and works from commercial suppliers, funded by grants, donations and contracts. These are business-to-business terms for the charity's side.

What matters in a charity's purchase terms

Trustees' duties and value for money

Charity trustees must act in the charity's best interests and apply its funds for its purposes under the Charities Act 2011, and the terms should support that: a clear specification, a fixed price or a capped budget, no extras without written authority from a named person, and the right to audit the supplier's charges. The terms should say who at the charity may commit it, because a supplier who took instructions from a volunteer will say the charity agreed.

Funder conditions and restricted funds

Grants and contracts come with conditions on how money is spent, reported and clawed back, and the terms should flow down to the supplier the conditions that affect its work: reporting, record keeping, audit access, eligible costs and the funder's branding requirements. The terms should also say that where funding for the work is withdrawn or reduced, the charity may reduce or end the contract on notice with payment for work done.

Safeguarding, vetting and conduct

Where a supplier's staff work with children or adults at risk, or on the charity's premises or with its beneficiaries, the terms should require the supplier to comply with the charity's safeguarding policy, to vet its staff as the charity requires including criminal record checks where the role is regulated activity under the Safeguarding Vulnerable Groups Act 2006, to report concerns, and to remove staff at the charity's request. Health and safety duties under section 3 of the Health and Safety at Work etc. Act 1974 apply to the supplier's own activities.

Data, the charity's name and confidentiality

Beneficiary and donor data is often sensitive, and the terms should include the mandatory processor provisions under the UK GDPR and the Data Protection Act 2018 where the supplier processes it, with security and breach notification obligations. The supplier may not use the charity's name, logo or the relationship in its own marketing without written consent, and the terms should say so, because charities find their logos on suppliers' websites more often than businesses do.

Payment, performance and termination

Payment is on the charity's stated terms from a correct invoice with rights of set-off, and the Late Payment of Commercial Debts (Interest) Act 1998 allows an agreed period that is not grossly unfair. The supplier should perform with reasonable care and skill under section 13 of the Supply of Goods and Services Act 1982, meet the milestones stated, and comply with the Bribery Act 2010. The charity should be able to terminate for breach, insolvency, loss of funding, or if the supplier's conduct would bring the charity into disrepute.

What it costs

Customer or supplier terms and conditions, £995. One set of terms, customer-facing or supplier-facing, drafted for your business. Five working days.

Review of your existing terms, £495. You already have terms and want them checked and brought up to date. Returned marked up with my amendments and an explanation of the changes. Three working days.

Buying online forms the engagement on payment. The scope is what the terms and conditions drafting page describes, you accept the Terms of Service at checkout, and I email you within four working hours to get started. If you would rather ask something first, email me.

What you get

• A full set of bespoke terms drafted for your business, reflecting the legal requirements that apply to your business and sector
• A note in plain English explaining the terms I have drafted for you
• Liability, payment, termination and IP provisions that protect your position and are drafted to withstand scrutiny from the other side
• Guidance on how to incorporate the terms properly
• Your questions and comments answered by email or phone
• One round of amendments to finalise the terms ready for use

What is not included

• Negotiating your terms with individual customers (I am happy to quote for this as an additional service if required)
• Sector-specific regulatory compliance beyond the contract terms themselves
• Website privacy notice and cookie compliance, which I quote separately
• Terms governed by the law of another country
• Tax advice

Questions I am often asked

A supplier is using our logo and calling us a partner on its website. Can we stop it?

If the terms prohibit use of the charity's name and logo without written consent, yes. Require removal; the terms are the notice.

Our grant was cut and we cannot afford the rest of the contract. Are we stuck?

If the terms allow the charity to reduce or end the contract on notice where funding is withdrawn, with payment for work done, no. Without that term, the charity is bound like any other customer.

Can we require a supplier's staff to have criminal record checks?

Where the role is eligible for checks, the terms can require them and require the supplier to comply with the charity's safeguarding policy. The charity decides which roles need them under its policy.

Related guidance and services

• Terms and conditions drafting, £995, the service this page describes
• Contract review, £495
• Purchase terms for a school or academy trust buying services
• Terms and conditions for a training provider

This page is general guidance for businesses in England and Wales, not advice on your own circumstances. Last reviewed: September 2026. Email geoffrey@caesar.co.uk.