Donations Sponsorship to the University of Sunderland
Overview
Many of you will be aware of the Government’s pledge to match fund philanthropic giving to universities over the period 2008/2011. Such a matched giving programme is in the consultation phase and set to begin in August 2008.
In preparation for the scheme, the Vice-Chancellor, as head of the University’s fundraising team, would like to remind Deans and Directors of the need to use the Development and Alumni Office (DAO) to coordinate all fundraising activity.
Through tracking supporters, approaches and donations the University seeks to increase the overall level of giving to schools and services.
Schools and Services have an obligation to ensure that all approaches, solicitations and donations are recorded with the DAO. In return the DAO are able to offer long term support both in the solicitation process and the important process of thanking and stewarding donors.
We appreciate that schools and services already undertake a great deal of philanthropic activity, and this paper is not intended to stifle this enthusiasm. It simply seeks to maximise the revenue benefits for the University, while minimising any tax liabilities. Recording information about solicitations and donations also helps the University with reporting on this area of income.
Gifts
A philanthropic gift to the University is any donation that enables the University to achieve its aims and objectives for no material return to the donor.
Gifts can be given to the University of Sunderland Development Trust (Reg. Charity 1041658) or to the University directly (as a charity exempt of registration under the Education Act.). For administrative reasons the University prefers gifts to be made through the Development Trust.
Gifts might be given in order to fund a wide range of activities including, but not confined to: scholarships, capital programmes, academic positions, field trips, research, lectures and exhibitions.
The Development Office can help you process gifts of cash (cash, cheques, card payments) stocks and shares, property and gifts in kind.
Gifts may attract a range of tax benefits both for the donor and the university. The most notable is Gift Aid which may increase the value of donations by 28% (25% from April 2008).
With Gift Aid and the Government Matched Funding cash gifts from individual donors will nearly double in value. It is therefore essential that schools and services notify the DAO on receipt of a gift.
Sponsorship
Sponsorship differs from a philanthropic gift in that the donor benefits from making the gift. This can reduce the value of sponsorship as it can leave the University liable for VAT at 17.5%.
Where the University receives sponsorship or some other form of support it will normally be making taxable supplies if, in return, it is obliged to provide the sponsor with a significant benefit. According to HMRC typically this might include any of the following:
· naming an event after the sponsor;
· displaying the sponsor’s company logo or trading name;
· participating in the sponsors promotional or advertising activities;
· allowing the sponsor to use your name or logo;
· giving free or reduced price tickets;
· allowing access to special events such as premieres or gala evenings;
· providing entertainment or hospitality facilities; or
· giving the sponsor exclusive or priority booking rights.
This list is not exhaustive and there are many other situations in which the sponsor may be receiving tangible benefits. What matters is that the agreement or understanding the University has with its sponsor requires the University to do something in return.
Stewardship
By ensuring donations are centrally recorded the University to engage with its supporters in a more structured way. This means that not only will contributions not be lost or forgotten but can be recognised. This stewardship activity will make it easier to solicit further future donations. Schools and services can have access to supporters through University of Sunderland’s Raisers Edge Database to assist with this process.
Further information
Please contact Andrew Beales, Development Manager (int.3664) for more information.