1. Purpose/Abstract
1.1. This document sets out the University’s policy for the acceptance or refusal of philanthropic donations. It is intended for the University community and for prospective and current donors and their advisers, providing assurance that all donations are managed with the same due diligence, management and approval processes.
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 mitigates the legal, financial, reputational, ethical and dependency risks associated with acceptance or refusal of gifts and donations, due diligence requirements and adherence to related internal and external regulations, policies and procedures.
3. Scope
3.1. This policy is not intended to cover ‘gifts and hospitality’ which is covered in a separate policy.
3.2. 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.
3.3. The UK Bribery Act 2010 requires the institution to ensure that the receipt of a donation is not related to some inappropriate advantage that be afforded to the donor, such as the offer of a university place for a close relative or the award of a contract. Other relevant legislation includes the Proceeds of Crime Act 2002, the Terrorism Act 2000, and the Money Laundering Regulations 2007, under which it is an offence to receive, retain or convert money or property known or reasonably suspected to be the product of criminal activity.
3.4. This policy applies to all philanthropic donations received by the University, whether cash or in-kind donations of equipment, expertise or services.
3.5. This policy applies to all volunteers, professional advisers, students, and staff across all colleges and departments of the University of Derby, across both academic and professional services.
3.6. 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.
3.7. The University of Derby actively seeks and can accept donations from, but not limited to, the following eligible sources in accordance with this policy:
- 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
3.8 Donations may be in the form of:
- Cash
- Property and other assets
- Gifts in kind - such as items for the University, in-kind services, or pro-bono voluntary work
4. Definitions
4.1 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 or time or 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. After receipt, the University must own the donation in full and any work, project or intellectual property that results. The donor may not retain any explicit or implicit control over a donation after acceptance by the University and there must be no contractual conditions attached to the donation.
4.2 Donors: Individuals, companies or funders making a philanthropic donation to the University, without receiving any material benefit in exchange.
4.3 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.”
4.4 Fundraisers: Any employee, volunteer or stakeholder who solicits or receives funds on behalf of the University.
4.5 Solicited: A donation that 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.
4.6 Unsolicited: A donation offered to the University without prior engagement or involvement with a university fundraiser.
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 donations 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 donations 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 gifts and donations (including gifts in kind) should ensure they adhere to the University’s Financial Regulations and any other relevant policies and procedures, including the Ethical Fundraising Policy and Naming and Donor Recognition Policy.
5.5. The Development Office, working closely with Finance and Legal teams, is responsible for:
- Overseeing the implementation of this policy
- Liaising with donors, individuals and organisations to progress with accepting or refusing any donations made to the University accordance with this policy
- Seeking approval for accepting donations as outlined in this policy from those with the relevant delegated authority
- Maintaining accurate records of all donations accepted and refused by the University and the decision-making process for these, including records of any due diligence undertaken
- Reviewing this policy annually and submitting to the relevant University authorities for approval (currently the University Executive Board)
5.6. 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.
5.7. Finance maintains a register of all cash received, including philanthropic 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. The Development office is responsible for maintaining records of all donations accepted and refused and the outcomes of any due diligence procedures, including the reasons for decisions on acceptance/refusal. The Development office is responsible for acknowledging donations made to the University promptly, stewarding donors and updating them on the impact of their support.
5.9. Fundraisers who solicit or receive funds on behalf of the University shall:
- Adhere to the provisions of this policy and Donor Charter (Donor Charter is located within the Ethical Fundraising Policy - 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 prospective donor 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 all University’s policy and procedures covering fundraising, including but not 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 (located within the Ethical Fundraising Policy - Appendix 1)
- Donors are identified and managed correctly
- All donations are correctly recorded and reported in alignment with appropriate 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 line with the University’s Conflict of Interest 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 acceptance of a donation or gift in line with university policies
7. Policy Implementation
7.1. Gift Acceptance Principles:
- Donations are accepted and held by the University in accordance with its Finance Regulations which are formulated and monitored by the Finance team and overseen by the Audit and Risk Committee of the Governing Council. Delegated authority for acceptance of donations sits with the Gift Oversight Committee
- In considering the acceptance of any donation, the University will consider if the donation is compatible with the purposes and goals outlined in its Memorandum and Articles of Association, all relevant legislation and University policies and regulations, and University strategy
- The donation will be handled responsibly, to the greatest advantage of the University
- The donation will be applied for the purpose for which it was originally requested or given, unless explicit written consent is otherwise given by the donor, or, in the case of bequests, for the purposes described in the donor’s will or for similar purposes agreed with the donor’s executors
- In cases where the University’s objectives have changed to such an extent that this is no longer possible (for example, provision is made in a bequest for students on a particular academic programme which is no longer offered by the University), appropriate guidance will be sought from the Charities Commission as required by the Fundraising Regulator
- Donated shares and their shareholders will be reviewed in accordance with the University’s Environmental Policy. The outcome of this review may require shares to be sold or divested and reinvested. Any gains from the sale of shares will be utilised for the purpose it was originally intended
- The donor’s right to privacy will be respected in accordance with all relevant data protection legislation, including the UK GDPR and Freedom of Information Act 2010
7.2. Gift Acceptance Approval Levels:
- For donations and pledges <£5,000 due diligence processes will not usually be triggered unless certain risk factors are present, as identified by the Fundraising Regulator and listed below. Where no risk factors are identified and the donation or pledge value is <£5,000 (and therefore when due diligence processes are not triggered) the Head of Development has authority to approve approaches and accept donations
- These potential risk factors which would trigger due diligence processes at any size of donation or pledge include:
- Unsolicited donations
- Anonymous donations or those made through an intermediary
- Donations with unusual, unreasonable or potentially illegal conditions or restrictions
- Donations associated with complex banking or tax arrangements
- Time-limited donations
- Donations in the form of beneficial loan agreements
- Donations from foreign sources or made in a foreign currency
- Donations of a significantly different value than expected
- Donations of property, particularly of significant or potentially appreciable value e.g., real estate or crypto-assets etc
- For donations and pledges of >£5,000 or of any value where any of the risk factors above are present, the Development Office will undertake the necessary due diligence processes and provide a report, including information on the identity of the donor
- Where no or low risks are identified for donations or pledges <£50,000, the Director of External Relations has authority to approve approaches and/or accept donations
- Where medium or high risks are identified for donations or pledges of any size OR where donations or pledges >£50,000, the due diligence report will be shared with the Gift Oversight Committee who holds the delegated authority to make decisions on acceptance
- In exceptional circumstances, this may require seeking the input of the University’s Governing Council
7.3. Gift Acceptance Due Diligence
Due Diligence is performed to verify whether engagement with a prospective volunteer or donor and/or a proposed donation aligns with the University’s Gift Acceptance Principles. Due Diligence must be completed by the Development Office prior to, or otherwise within 28 days of:
- Assigning a prospective donor to a fundraiser
- Receiving a donation or cumulative donations at the levels outlined above
- A pledge being made at the levels outlined above
- Approving a volunteer to act as a fundraiser
7.4. Gift Refusal Principles
In the unlikely event a donation is refused it will be due to the following or similar reasons:
- The University will not accept an “anonymous” donation without at least two members of the University Executive Board being aware of the source of the donation
- The University of Derby will not accept donations where the sources, or naming of a donation fall short of the standards determined by the University’s due diligence procedures and where:
- There is credible evidence that it has derived in whole or in part from illegal or unethical activity
- If it requires any illegal or unethical inquiry by the University
- If it has the potential to cause significant damage to the reputation of the University or its relationships with its stakeholders, including donors, alumni, staff, current students, parents or other supporters (including those with whom it holds formal or informal relationships or with whom it hopes to establish relationships)
- The donation compromises the independence of the University
- The donation is counter to the University’s interest
- The donation is from registered students or known close relatives (parents, spouses, legal partners, children, grandparents, stepparents and former or current legal guardians of registered students) and given with the intention of achieving academic gain or influence
- The University will not ordinarily accept philanthropic donations from organisations where a major part of their business demonstrates the following characteristics:
- Explicit environmental damage
- Manufacture and sale of armaments to military regimes
- Institutional violations of human rights, including exploitation of the work force
- Discrimination against the individual in any shape or form
- Manufacture and sale of tobacco products
- Return and Refund principles:
- If, following a solicitation, the University cannot honour the terms of the donation and a compromise cannot be reached with the donor, the University will refund the donation to the donor, their estate or legal representative as appropriate, and in line with the University’s Finance Regulations
- The University will not normally return a donation which has been accepted in good faith. If a situation arises which gives the need to review a previous decision to accept a donation, the matter will be referred to the Governing Council, who will determine whether the donation needs to be returned. If the reason for return is because of suspected criminality, the matter would first need to be referred to the appropriate government agency, before returning funds
7.5. 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 will be addressed in the context of the University’s procedures and/or 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. Equality Analysis
11.1. 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.