Donations - instructions and guidelines

Donations to a public authority are regulated in the Swedish Donations Ordinance (1998:140) and in the Swedish National Financial Management Authority’s regulations, where you will also find overall conditions for receiving a donation.

Purposes for donations may include:

1. A specific purpose, such as infrastructure or equipment, or funding of a specified project, department, division or particular researcher.
2. A specific research domain, educational initiatives, or cultural heritage.
3. A non-earmarked donation to Uppsala University.

If you have contact with individuals or private organisations who wish to donate funds to research or other parts of Uppsala University, or that you think wish to do so, you should always inform the Development Office and the head of department or equivalent. This ensures that other parts of Uppsala University do not already have conversations with the possible donor and that you receive support throughout the process.

According to the Swedish Donations Ordinance, a donation is “... any form of transfer of property to a public authority by gift or testamentary provision which takes place without requiring any benefit or preferential treatment in return and where the property is not used to create a foundation” (unofficial translation).In other words, there can be no requirements for rights to research results, for example. On the other hand, it is perfectly reasonable for the donor to reclaim information about how the funds have been used and achievements.

Keep in mind:

• Listen to the potential donor’s expectations and aims.
• Mutual trust is the best foundation on which to stand.
• The road from a possible donation to a deed of gift is long and takes time.
• A donation generally entails a long-term relationship.

A donation is an expression of the donor’s confidence in your ability to contribute to decisive breakthroughs. The purpose of a donation is often a project in an area that for various reasons is dear to the donor’s heart. That underscores the importance of clarifying in conversations with a potential donor what a donation to your project can lead to, such as benefits to society.

It is a good idea to divide the project’s funding needs into delineated parts with defined intermediate goals. For each of the parts, indicate an approximate “price tag”.

It is always tempting to accept funding, but if the project at this stage does not prove to be right for the donor, it is preferable to state this. Remember that a donation is not the same as commissioned research in which the donor owns the right to the results. For this reason, listen to the potential donor’s wishes and visions and think about how you can contribute to them and whether you want to devote yourself to that research.

Making compromises can lead you to investing time in activities that are not relevant to your research. Try to continue to maintain a good relationship with the donor-

Keep in touch with the Development Office, which gladly provides advice on how projects can be presented and can support the relationship with the donor even if a collaboration does not materialise now.

The Development Office does not have a “ready-made list” of possible donors, but we can work with you to develop contacts with external stakeholders. We are also happy to provide advice on how project ideas can be presented to an external party. Although every research project has different purposes and different needs, there are some general points to consider.

• Think about your research from the outsider’s perspective and explain what new knowledge in the field can mean. For example, it can ...:
  • provide a better understanding of our history;
  • improve democratic processes;
  • increase opportunities for better medical care and health;
  • contribute to sustainable development – Agenda 2030.
• Share the project’s goals and dare to be a visionary!
• Divide the final objective into smaller, separate parts, and be prepared to specify the timing for different intermediate results.
• What are your total financial needs and what are the financial needs of the different parts of the objective?
  • Specify what the funding is needed for – premises, equipment, services ...?
  • What will you be able to achieve if you receive X kronor, 5*X kronor, etc.?
  • Do not forget to include overhead costs in the budget, but clearly state what type of important joint overhead is included in the costs.
• The “leverage” the funding can have – what additional funding would a donation attract?
• Why you, in particular, should do this? What experience and previous results provide a basis for your project?
• Has the team or department previously received donations?
• What experience does the team have in communicating research outside academia?

Think through and sketch out the points above before contacting the Development Office.

A good donor relationship means a long-term relationship. Trust develops over time. That means it is important to reflect at an early stage on whether the donor is right for the research team and its operations.

As a public authority, Uppsala University needs to know the origin of a donation. It can also be useful to acquainted with the donor’s previous experience of philanthropy and academic research conditions.

If the donor prefers to have an assignment carried out and the research team finds this interesting to work with, a contract research agreement should be used. Uppsala University’s Innovation Partnership Office (“UU Samverkan”) can assist in drawing up such collaborations.

The donor will probably appreciate a report from the research team. Find out what the expectations are in advance and make sure they conform with what is stipulated in the Swedish Donations Ordinance and in the Swedish Financial Management Authority’s regulations.

Include the Development Office in meetings with the potential donor so we can help you set goals that foster a long-term relationship that works for all involved parties. We can also work with you to conduct a risk analysis of the donation.

If the donation is to cover all costs of the project, all types of costs, such as overhead and salary ancillary costs, need to be included. The deed of gift, which is signed prior to receipt of the donation, cannot contain restrictions on the coverage of such costs. (See also the section “Procuring and hiring”)

Consider the following points when budgeting:

• Obtain help from the person responsible for finances at the department or division to set up the preferred financial structure for the project. Also consider whether there are other internal or external co-sponsors to be informed.
• Have all costs been included? Keep in mind that there may be costs involved in recruiting. You also may need to include the cost of communicating the project in the budget.
• It is important for the donor to understand the purposes of overhead costs. For that reason, you should ask the person responsible for finances at the department to provide examples of such costs.
• A simple project financial structure with a clear connection to the budget makes it possible to easily monitor the project and how the money has been spent, in case the donor or others request this information.

To regulate the relationship between donor and recipient, a deed of gift needs to be drawn up and signed by the donor and the head of department.

The recipient of a donation is always Uppsala University as a public authority, not individual employees or units. As a result, decisions regarding receipt of donations are made by the Vice-Chancellor or the person delegated by the Vice-Chancellor in accordance with the delegation arrangements that apply at the time. Normally, the head of department signs the deed of gift.

The Development Office provides advice on the wording of the deed of gift before it is sent to the Legal Affairs Division. Among other things, the wording is reviewed with regard to:

• the parties (the donor needs to be a specified private individual or legal entity);
• the purpose of the donation;
• the nature, amount, form and time of payment or access to the donation;
• any other clauses.

Then the deed of gift is sent to the donor for signature.

Remember that different forms of fund management may be possible, depending on how the donation is formulated (foundation, affiliated foundation, direct donation, etc.) and the size of the donation. Very large donations can become foundations administered by the Uppsala University Foundations Management of Estates and Funds (UAF), which has historically been very successful as fund manager. A stable and strong return is especially important in large donations that run over a long time. Through its co-administration of more than 600 foundations, UAF offers a model with administration costs far below those that ordinary commercial banks offer for foundations they administer.

Please note: Since a vice-chancellor’s decision is required when Uppsala University is to receive donations to be managed in a foundation, it is especially important that you contact the Development Office in advance for guidance in handling such a donation.

Before the deed of gift can be written:

• Risk analysis for the donation needs to be conducted. The Development Office helps with this.
• A reasonable and adequate detailed project plan and budget needs to be approved by the head of department and any other parties involved.
• A communication plan for the donation and the project needs to be developed. See also the section “How are we to communicate the donation?”
• The basis for any receipt of equipment may require investigation because the equipment may entail consequential costs, co-financing, rules for use by other researchers and, in some cases, the risk of the equipment being considered a bribe.

After signing, the deed of gift is to be archived in the official register and a copy sent to the Development Office. Donations are to be archived with the registration designation 2:2:4.

When drafting the deed of gift, we advise you to discuss with the donor how you want the donation to be communicated. Some donors avoid publicity, while others would like to see the donation communicated publicly.

Uppsala University strives to maintain a consistent naming policy for external parties. For example, naming premises or activities after a donor is possible in some cases based on a decision by the Vice-Chancellor. You can find more information about this in Uppsala University’s guidelines for naming (UFV 2021/75). Because it can be difficult to assess what is a reasonable “level” of visibility and what the donor might perceive to be positive feedback, we strongly recommended involving the Development Office in these conversations as early as possible.

If you and the donor agree to make the donation public, for example in the media, the Development Office and the University’s Communications Department will collaborate on the best way to do this. A press release from Uppsala University is not the only way.

Would the donor appreciate being thanked in future publications and other communications about the project? Although a donation cannot be conditional on the donor being publicly thanked, it is usually a highly appreciated gesture. Do not promise more than you can deliver but take advantage of the opportunities available to say “Thank you”. Please note that the agreement needs to conform with the Donation Ordinance and the Swedish National Financial Management Authority’s regulations.

There are, of course, a variety of ways to communicate a donation and thank a donor. In all cases, any communications are checked with the donor or the donor’s representative in advance, and preferably also with the Development Office.

The signed deed of gift shall include information regarding the donated amount as well as when, how and at what intervals the donor shall disburse funds for the project. This may also involve placement of instruments or other tangible equipment or making tangible assets available.

Usually, funds are disbursed according to the deed of gift either as a lump sum or as several periodic payments.

It is important to inform the person responsible for finances at the department about when the payments are expected so that allocation to the right project runs smoothly and the budget control is correct.

It is particularly worthwhile to arrange or prepare for:

• When the funds are disbursed (before or after use, periodically, etc.).
• Project number to be credited.
• Are funds (such as internal charges) to be allocated to several different teams?
• Is co-financing to be requisitioned from another budget within Uppsala University?
• Any exchange rate effects (if the donation was made in a currency other than Swedish kronor).
• Any types of costs that may not be covered by the donation (see deed of gift) according to the donor.

In connection with a donation and the project to be carried out, it can often be relevant to purchase new equipment or other resources and hire staff.

Hire and/or recruit

If new staff are to be hired, you need to contact the head of the department and human resources generalist as soon as possible to review the matter related to the donation.

Employment can be either for a fixed term or permanent. Keep in mind that a donation usually ends after a couple of years, while fixed-term employment automatically transitions into a permanent position after a certain period. Is there funding for a possible permanent position at the department? In other words, can you sustain such an increased cost after the donation? Discuss this with the head of department or the immediate manager.

Also consider issues such as:

• What job specifications contribute and complement other ongoing or planned research?
• Where are the position or positions to be located?

Purchase of equipment and/or services

If donated funds are to be used to purchase new equipment or cover costs for external positions or services, the usual rules for public procurement apply. If necessary, enlist help from the person responsible for finances at the department and the procurement unit.

Keep in mind that purchasing heavy equipment often entails depreciation over several years and requires service contracts and consumables. Such equipment sometimes requires renovations of premises or other costs associated with installation and operation.

A donation of research instruments from suppliers, manufacturers or owners of companies needs to be specifically regulated in the deed of gift. Ask for assistance from the Development Office and the Legal Affairs Division.

Depending on what has been agreed in the deed of gift, the donor is to receive some form of report, even if this is not described in detail in the deed of gift. Reporting is part of maintaining a relationship with the donor.

Important to keep in mind when providing reporting:

• Let the Development Office assist in adding value to the reports that you provide.
• Reports are to be of adequate quality and be timely so that the donor avoids having to request the information.
• If university management, area management, external parties and others are expected to participate, plan this well in advance.
• The Development Office is happy to help arrange status meetings for learning about and improving how donations are managed and supported, known as donor care or stewardship.
• It is also important to share experiences internally, both about the research and about experiences with the donation process.