Principles governing donation eligibility

Where our frequently asked questions do not clarify a donation's eligibility we will consider the following questions. We encourage institutions to form their own judgments on the merits of individual cases based on these principles.

If you have a specific query which is not covered by these principles, and which is not answered under the FAQs, please contact matchedfunding@hefce.ac.uk.

Is the donation from an eligible source?

The donation must come into the institution's own accounts from an external source (this may include a non-consolidated trust) within the claims year, and must not be on the list of excluded donors. All trusts and foundations that donate over £60 million annually are excluded, not just those listed on this web-site.

Is there a material benefit to the donor in making the donation?

Under the rules of the scheme, a donation must have clear philanthropic intent: donations which have a material benefit to the donor would not be eligible for matched funding. (Examples include any corporate sponsorship which promotes a corporate brand or logo, or membership of a 'Friends' scheme in which members receive privilege benefits.)

Is the donation given to the institution to use independently? Are there any conditions attached to the donation?

It is reasonable that donors may wish their donation to be directed towards certain areas of work or development within an institution's remit. The institution has a responsibility to acknowledge and respond to donors' wishes, and we strongly encourage the use of gift agreements to establish an understanding of expectations on either side.

But, for a donation to be considered philanthropic the institution must have ultimate autonomy over how the donation is spent. Institutions may agree the terms under which donations are used mutually with the donor, but donors cannot set restrictive conditions on the use of the donation. Donations cannot be directed towards named individuals, and donors cannot select named individuals to be in receipt of funding they have directed towards a certain area of work.

Is there a satisfactory audit trail for the donation?

If the institution is selected for audit, we would expect to see a clear audit trail, under the institution's own audit procedures, for all claimed donations. Claimed donations must be received into the institution's own accounts within the claims year, and the audit trail should show this. Claims submitted should accurately reflect donations received in the claims year (although institutions do not have to claim for all eligible donations if they choose not to) and cannot be amended retroactively.

Anonymous donations are allowable under the rules of the scheme, provided that the institution follows its own audit procedures in recording their receipt.

 

Page last updated 22 July 2011