This refers to the remittance of funds received by a charity which do not belong to the charity, for instance, where the charity receives the funds in circumstances where the charity, acting as agent or trustee of another charity, is legally bound to pay them over to a specified third party/the beneficiary charity and has no legal responsibility for ensuring the charitable application of the funds. In these circumstances, the charity that receives the funds as an agent or trustee would not recognise the funds received as income in the Statement of Financial Activities (refer to Charities Accounting Standard paragraph 75).

Charities that remit funds on behalf of another party are required to make the disclosure as long as these are intended for an overseas purpose. The charity will be required to disclose the quantum, overseas country as well as the name of the overseas recipient.