As a registered charity, Imperial College Union (ICU) can accept gifts to help support your group. However, we must follow strict UK charity and tax rules.
What is a Donation?
A donation is money or physical items given to your student group as a free gift. To legally count as a donation, the giver must receive nothing in return.
What is a donation: A former student gives your group £500 because they want to support you.
What is NOT a donation: A company gives you money and asks you to put their logo on your kit, website, or flyers - this is Sponsorship and sponsorship has different tax rules.
How to Process a Donation
What you need to do depends on the amount of the gift.
Minor Donations (Under £100)
You can accept these via shop products, by direct transfer into the Union's account from the donor or through a student gorup card machine provided by the Union. Ensure the transaction details and the donor's name (where possible) are clearly recorded in an eActivities Banking Record.
Standard Donations (£100 to £999)
You must ask the donor to provide an email or letter before these funds can be cleared to your group accounts. The letter must contain:
- the name and address of the donor
- the amount given
- to ensure we comply with HMRC rules, and do no incorrectly evade VAT, the donor must also include a statement that the donation is a freely given gift with no goods, services, advertising or other commercial benefits expected in return.
Large Donations (£1,000 or over)
Do not accept the gift without first obtaining approval from the ICU Finance Team, who will be able to explain the mandatory checks that must be done before the gift can be processed.
Warning Signs to Look Out For
Even if a gift is under £1,000, you must stop and email the ICU Finance Team if you see any of these warning signs:
No Name: Someone wants to give you more than £100 but refuses to tell you their name or their business details.
High-Risk Countries: The money comes from an overseas country that is considered high-risk (defined as any country scoring below 50 on the Transparency International index).
Strange Demands: The donor tells you that you must spend the money at a specific shop, tries to change how your club is run, or tries to restrict free speech at your events.
Cash or Crypto: The giver insists on giving you large amounts of physical cash or cryptocurrency (such as Bitcoin).
Authority to Refuse or Return Funds
Student groups do not have the authority to refuse or return a donation if a dispute or issue arises. Rejection of charitable funds is legally complex. If you have concerns about a donor or wish to turn down a gift, you must contact the ICU Finance Team, who will obtain a formal decision from the appropriate authority ob your behalf.
