Section J 76. Donations The Development Trust has delegated authority for acceptance and utilisation of donations. A Memorandum of Understanding (MoU) is drawn up between the donor and the University agreeing the purpose of the donation and its terms of use. Development Trust decides what the donation is for and allocates it to the appropriate cost centre in the College or Support Unit. Donations can be received with restrictions which limit what the donation can be spent on. The budget holder must spend the donation on the purpose for which it was given. There may also be performance related conditions which will affect how the donations is accounted for. The policy and guidance on accounting for donations and endowments is on the Finance website. 77. Endowments An endowment is a particular type of donation and is recognised as income in the year it is received. It is retained by the University and invested so that it earns income which can be used for the purpose specified by the donor. A permanent endowment must be retained in perpetuity whereas an expendable endowment may be utilised when necessary in line with the terms of its MoU. The Investment Committee has responsibility for the investment of endowment funds. The individual endowment fund-holder must ensure that expenditure is in line with the donor’s wishes. Contact the Finance Helpline This article was published on 2024-07-01
