1. Purpose/Abstract
1.1. This document sets out the University’s policy for ethical fundraising. It is intended for the University community and for prospective and current donors and their advisers, providing assurance that all donors are treated and managed equitably, fairly and with respect.
2. Introduction
2.1 The University of Derby holds the dual status of a company limited by guarantee under the Companies Act 1985 and an exempt charity under Schedule 3 of the Charities Act 2011.
2.2 The University welcomes and actively seeks philanthropic support in line with its charitable status and values.
2.3 This policy should be read in conjunction with University’s Donor Charter, which details a donor’s rights (appendix 1).
2.4 This policy mitigates the legal, financial, reputational, ethical and dependency risks associated with fundraising in an ethical and professional manner, due diligence requirements and adherence to related internal and external regulations, policies and procedures.
3. Scope
3.1 The University is registered with the Fundraising Regulator and follows the Codes of Fundraising Practice, which sets out the professional and ethical standards that apply to fundraising.
3.2 This policy applies to all philanthropic donations received by the University of Derby.
3.3 This policy applies to all volunteers, professional advisers, students, and staff across all colleges and departments of the University of Derby, both academic and professional services.
3.4 This policy applies to all companies in the University of Derby Group with the exception of Derby Theatre, which has its own policies governing fundraising.
3.5 This policy is in line with other guidance provided by the Charity Commission for England and Wales, the National Audit Office, Fundraising Regulator and the Chartered Institute of Fundraising.
3.6 This policy is in line with the University of Derby’s Anti-Bribery, Gifts and Hospitality Policy; Finance Regulations; Gift Acceptance Policy; and Donor Naming and Recognition Policy.
4. Definitions
4.1 Fundraising: Income generation from philanthropic sources to provide additional resources and support to the University of Derby achieving its strategic objectives.
4.2 Donors: Individuals, companies or funders making a philanthropic donation to the University, without receiving any material benefit in exchange.
4.3 Philanthropic donation (gifts and donations are defined further in part 6 of the University's Finance Regulations): A voluntary transfer of money, in-kind resource/service, time, beneficial loan agreement, or assets by an individual or organisation, made with philanthropic intent for the benefit of the institution. Assets in this context may be tangible fixed assets such as a building or equipment, gifts of investments or shares, cash, or stocks.
4.4 Eligible Sources of philanthropic donations:
- Donations from individuals in the UK and overseas
- Grants from charitable trusts and foundations in the UK and overseas
- Donations from companies in the UK and overseas
- Donations from legacy bequests
- Grants from overseas governments or their agencies and foundation
4.5 Due Diligence: A “decision-making procedure or process to enable an organisation to assess the risks of establishing a potential relationship (including accepting/making a donation). It includes determining the identity of the donor and the provenance/origin of the funds. Risk may include potential conflicts with the values and aims of your organisation.” (Definition taken from the Researchers in Fundraising Handbook, published by the Chartered Institute of Fundraising.)
4.6 Fundraisers: employees, volunteers or stakeholders who solicit or receive funds on behalf of the University.
4.7 Solicited donation: a donation is considered ‘solicited’ if it is offered to the University following engagement and involvement with a university fundraiser. This may be in response to a mass digital, print or telephone appeal from the University or in response to individual engagement by a university fundraiser.
4.8 Unsolicited donation: a donation is considered ‘unsolicited’ if it is offered to the University without prior engagement or involvement with a university fundraiser.
4.9 Fundraising activity: includes, but is not limited to:
- Prospecting and identifying potential donors
- Cultivation of donors
- Soliciting donations in a range of ways
- Stewardship of donors
5. Responsibilities
5.1. Members of the University’s Governing Council, the governing body of the University, are the charity trustees. In principle, trustees of a charity are expected to accept money given to that charity for purposes consistent with the charity objectives, but the trustees have discretion to consider other factors relevant to the charity’s best interests.
5.2. The Governing Council delegate their day-to-day decision-making authority to a Gift Oversight Committee who will consider solicitations and donations of any size where medium or high risks are identified OR gifts above £50,000. All reports on due diligence processes will be shared with this Gift Oversight Committee.
5.3. The Director of External Relations will have authority to approve solicitations and acceptance of gifts under £50,000 where no risks are identified. The Director of External Relations will inform the Gift Oversight Committee of such solicitations and acceptances alongside the accompanying due diligence report.
5.4. All fundraisers involved in the solicitation of donations (including donations in kind) should ensure they adhere to the University’s Financial Regulations; this Ethical Fundraising Policy; the Gift Acceptance Policy; the Naming and Donor Recognition Policy; and the Anti-Bribery, Gifts and Hospitality Policy.
5.5. All philanthropic donations must be coordinated through the Development Office in order for the University to meet its legal obligations as a charity; to protect donor rights and expectations; and to manage potentially conflicting requests from different parts of the organisation. Therefore the Development Office must be informed, in accordance with the procedures of this policy, of an intended approach to a donor before it is made, or of any approaches from a donor which have been made to any member, department or other academic unit or any division within the University as soon as possible after the approach has been made. This does not include approaches for grants from research specific funding bodies and commercial transactions as part of the University’s business activity.
5.6. The Development Office is responsible for:
- Overseeing the implementation of this policy
- Reviewing this policy annually and submitting to the relevant University authorities for approval (currently the University Executive Board)
- In cases of potential donations which may conflict with any university guidelines or policies or the strategic vision and mission of the University; where any risks are identified; and for philanthropic donations or pledges of over £5,000, the Development Office will undertake the necessary due diligence processes in conjunction with Finance and Legal teams. All such reports will be shared with the Gift Oversight Committee, who have the delegated authority to accept or refuse donations or approaches based upon guidance in this policy and in the Gift Acceptance Policy
- Funding proposals for £50,000 and above will automatically be referred to at least one member of the University Executive Board by the Development Office for approval after they have undergone the due diligence processes outlined above
5.7. Finance maintains a register of all cash received by the University, including philanthropic gifts and donations. They will also assess all income and will decide upon accounting treatments and valuation. Some donations or gifts may be deemed assets for recognition in the balance sheet. Finance is responsible for ensuring the correct accounting treatment is applied to each donation received.
5.8. Fundraisers on behalf of the University shall:
- Adhere to the provisions of this policy and Donor Charter (appendix 1)
- Act with fairness, integrity and in accordance with all applicable laws, including the UK GDPR and Freedom of Information Act (2000)
- Adhere to the Fundraising Regulators Fundraising Code of Practice
- Cease solicitation of a prospect who identifies solicitation as harassment or undue pressure
- Disclose immediately to the University any actual or apparent conflict of interest
- Not accept donations or gifts for purposes that are inconsistent with the University’s strategic objectives
- Not sell all or parts of the University’s donor list or information
- Adhere to the University’s policy and procedures covering fundraising, including (but not necessarily limited to):
6. Policy Statement
6.1. The purpose of this policy is to ensure:
- All donors are treated equitably, respectfully and in line with the Fundraising Regulator’s Fundraising Promise and Donor Charter (appendix 1)
- Donors are identified and managed correctly, and all approaches are coordinated and professionally managed
- All donations are correctly recorded and reported in accordance with the correct accounting treatment. All donations received are in support of the University’s Strategic Framework and objectives
- Conflicts of interest are identified, assessed and recorded in in line with university policy
- Legislation is adhered to and not avoided
- The University’s reputation is not in any way damaged or compromised
- Nothing illegal or unethical is involved in the solicitation of a donation or gift in line with University’s policies
7. Policy Implementation
7.1. The University seeks funds for strategically important projects that enhance Derby’s academic potential, academic standing or income-generating potential and such funds must be in keeping with its values, including academic freedom, accountability, and integrity.
7.2. Gifts and donations should be proportionate to their intended purpose so that transparency with donors about what their donation can achieve is maintained. In addition, it is important that there is a consistent approach across the University to funding proposals (for example, for a similar purpose, gifts of a lower value should not be accepted in one part of the University than they would be accepted in another. Discretion is possible where costs in one area are by necessity higher than another, i.e. provision of a PhD studentship in the College of Science and Engineering could reasonably be expected to be higher than in some humanities disciplines).
7.3. Where a gift is from registered students or known close relatives (parents, spouses, legal partners, children, grandparents, stepparents and former or current legal guardians of registered students) no advantage will be provided to the student as a result of the donation, and no information about said student will be shared with a donor without the student’s consent. Similarly, a donor will not be given information about the progress of a scholarship recipient unless that information is freely given by the scholarship holder concerned.
7.4. Potential donors should be referred to the University’s Donor Charter (appendix 1), which sets out in broad terms, a Donor’s Rights and what a donor can expect from the University. These documents, alongside the Ethical Fundraising and Gift Acceptance policy, will be visible externally on the University’s website.
7.5. Where funds are intended to contribute to a project, the full direct costs of the project (e.g. support staff costs, additional running costs, additional space or equipment costs) should be properly identified beforehand.
7.6. Where a donor (or prospective donor) believes that the above policy has not been followed, a complaint may be made to the Clerk to Council with the contact details below. Complaints from donors will be responded to in a timely, respectful, open and honest manner. The University will ensure that learnings from any complaints are acted upon.
Clerk to Council
University of Derby
Kedleston Road, Derby
DE22 1GB
governance@derby.ac.uk
8. Sanctions
8.1. Failure of staff or students to comply with this Policy may be addressed in the context of the Staff or Student Disciplinary Policy.
9. Related Documentation
9.1. This policy is aligned with and is in coordination with the following university policies:
10. References
10.1. This policy is in line with guidance provided by the Charity Commission for England and Wales, the National Audit Office, the Fundraising Regulator and the Chartered Institute of Fundraising.
11. Appendices
11.1. Appendix 1: Donor Charter
12. Equality Analysis
12.1. This policy has been designed to ensure that no-one receives less favourable treatment due to protected characteristics as defined under the Equality Act 2010.
Appendix 1
Donor Charter
We are very grateful to all our donors for their generous support. We welcome donations, both large and small, and use them to help to maintain our place as a world-class higher education institution.
The University is committed to transparency, accountability, and best practice.
Our Responsibilities
The University shall:
- At all times respect a Donor’s rights to privacy
- Hold donor information in accordance with the UK GDPR and other data protection legislation
- Acknowledge all donations promptly
- Respect and fully comply with all the Donor’s rights outlined in this Donor Charter (section 2)
- Not sell any part of our Donor lists or information
- Use all donations to support the objectives of the University
- Conduct our financial affairs in a responsible manner, consistent with ethical obligations and the legal requirements of our national and international regulators
- The University will assess potential donations on their merits and may decline a donation in accordance with its Gift Acceptance and Refusal Policy. The University will only agree to restrict the application of a potential donation where there is just cause to do so (i.e. under exemptions to the Equality Act 2010) and where the University is reasonably confident it is practically able to do so. For example, were criteria for a scholarship to be too narrow the University may not be confident it can deliver a proposed scholarship under such terms.
Donor’s Rights
Donors have the right to:
- Have details of their relationship and donations to the University not be shared in the public domain
- Alter their preferences about what information they consent to being displayed on any published donor listing at any time
- Require the University to update or correct any inaccurate personal data
- Donors are entitled to any of the following, promptly and upon request:
- A copy of all personal information held by the University relating to themselves
- Confirmation of the University of Derby’s exempt educational charitable status
- A copy of the University of Derby’s Donor Charter
- Information about how donations will be used
The University will use donations to help deliver our strategic framework and objectives. Donations may be applied through and in the University’s colleges, or centrally, and would typically support:
- The promotion of academia and learning for students, staff and the general public through bursaries, scholarships, travel grants, prizes and special lectures
- The promotion of research by providing funding for such things as stipends, equipment, and support in publication cost
- Investment in services and facilities, including libraries and other university buildings
- The promotion of student welfare directly through hardship funds designed to help those who most need support
- Where a donation is given with an expressed preference for how the donation is to be used, the University will use all possible endeavours to carry out such wishes
- Where there is no designation, donations will be used at the University’s discretion to promote our mission and objectives
- Where the Donor restricts the application of their donation, the University will apply the donation to the purpose originally stated. However, the objectives of the University may change over time and the original terms of any Gift Agreement no longer be enforceable, particularly in the case of legacy bequests. Should this happen, the University will seek an alternative use for the donation through the appropriate bodies, such as the Charity Commission, and in line with the relevant legislation whilst endeavouring to take account of the Donor’s original wishes and intention for their donation
- The University will regularly report on donations to its Governing Council and other internal governance groups
Data Protection
The University will manage your personal data in accordance with our Data Protection Statement and our Data Protection Policy.
Our Stakeholder and Fundraising Privacy notice can be viewed on our website.
Development Office Complaints Procedure
The relationship we have with the University’s alumni, friends and supporters is extremely important to us. We aim to provide a high-quality service as we fundraise, keep you informed about the University of Derby and let you know about the benefits and services that are available to you. Occasionally, our services may fall short of your expectations and you may wish to lodge a complaint.
A complaint may be made to the Head of Development, or, in their absence, the Director of External Relations. We will aim to respond to complaints in writing within 3 working days.
Contact: development@derby.ac.uk
Freedom of Information
The University is subject to the requirements of the Freedom of Information Act 2000. Information regarding donations will, according to the preference of donors, may be made public on the University’s website. In exceptional circumstances, further information regarding donors and donations may be subject to disclosure under the Act.
For more information please contact the Development Office at: development@derby.ac.uk