Stage 1: Funds seeking

Research donations may arise when:

• You approach a donor
• The UCT Development & Alumni Department (DAD) approaches a donor
• A donor contacts DAD directly
• A donor contacts you directly
• You respond to a call for donations (open or closed call) 

Sometimes you will submit a proposal for a research donation, and in other cases a donor may have already made an offer of donation funding confirmed via e.g. an email or award letter. Even if no proposal is submitted, any confirmed donation must still be formally recorded and processed through UCT’s systems to ensure accurate institutional records and compliance.

Stage 2: Proposal development and approval

/ Step 1: Notify the relevant offices

Development & Alumni Department (DAD)

As the custodians of fundraising and donations at UCT, Development and Alumni Department (DAD) must be informed of all donor engagements – whether initiated by you, DAD, or the donor. This ensures alignment with donor histories and institutional fundraising strategies.

Your Dean

If the opportunity is valued at over R3 million, or involves a strategic donor, notify your Dean early for transparency and approval. The Dean must confirm in-principle approval to pursue the opportunity and highlight any existing commitments with that donor.

Faculty Finance 

Faculty Finance must be involved before you draft the proposal or accept a donation. Notify Faculty Finance of your intention to submit a proposal or accept a donation. They will help you consider potential hidden costs such as internal audit costs, reporting and admin requirements and cost recovery implications.

/ Step 2: Prepare the donation documentation 

If you are drafting a proposal: Prepare a draft using the donor’s template, or a UCT-aligned motivation, and discuss it with Faculty Finance.

If the donor has already confirmed funding: Complete the UCT donations template to formally recognise the research donation and share it with Faculty Finance.

The following forms apply: 

• AS002 – Asset Acquisition (via Donation)
• CD006 – Donation in Kind Notification
• CD007- Donation Processing 

In both cases Faculty Finance will conduct an initial classification review and check for clauses or conditions that may prevent the funding being treated as a donation. 

If Faculty Finance identifies that there are deliverables, IP terms or commercial elements, the funding will not qualify as a donation and must follow standard UCT research funding processes via UCT eRA.

This requires:

• Response to a proposal – proposal stage approval process, see Stage 2: Proposal Development and Approval
• Funding already secured – contract stage approval process, see Stage 4: Contracting

/ Step 3: Send proposal/UCT donations template to DAD for final assessment

DAD will conduct two key assessments:

1. Confirm the funding is a bona fide donation. DAD will review your draft proposal/ UCT donations template against UCT’s donation criteria. If DAD is unsure about the classification, they will consult RC&I or UCT Legal Services for legal guidance. This ensures the funding is correctly classified and that UCT remains compliant with tax, legal and audit requirements.
2. Check alignment with donor requirements. DAD may request amendments to strengthen the proposal, align it with donor guidelines or ensure compliance with UCT policies. If DAD is satisfied that the funding qualifies as a donation and the research work aligns, they endorse the proposal for submission or, in the case of funding already secured, approve moving forward to the contracting stage.

/ Step 4: Finalise the budget for restricted donations

If the donation is restricted, your proposal must clearly show:

• The specific purpose of the donation
• A budget indicating how funds will be used
• How the proposed activities align with the donor’s intentions

Faculty Finance will work with you to develop or refine the budget, which forms part of the final submission to the donor.

If the opportunity exceeds R3 million, you must again inform your Dean at this point, confirming that the final budget has been prepared.

/ Step 5: Finalise the proposal, if applicable

Finalise your proposal and submit it to DAD for review via email. DAD’s proposal writers may assist you in refining and strengthening the proposal to improve its chances of success.

Where institutional sign-off is required, the Executive Director: DAD will review and approve the proposal on behalf of UCT.

Stage 3: Proposal submission

Note: This step applies only when a proposal must be submitted to the donor. If the donor has already committed the funding, and the steps above confirm it as a bona fide donation, you may proceed directly to Stage 4: Contracting.

Once the proposal is finalised and signed by the Executive Director: Development & Alumni Department (DAD), if required, either you or DAD submit it to the donor, depending on the donor’s requirements. If you submit the proposal, notify Development & Alumni Department (DAD) of the submission by email.

Stage 4: Contracting

/ Step 1: Draft the donation agreement or contract 

Once a donation is confirmed, complete the required donation agreement template in consultation with the donor. During negotiations, if any revisions arise, discuss the changes with the Development & Alumni Department (DAD). DAD will assess if the revisions affect the donation classification.
 
You also prepare the draft donation contract or agreement and send it to DAD for review. DAD will review the agreement for: 

• Legal compliance
• Alignment with UCT donation criteria
• Section 18A tax requirements
• Institutional risk

If new terms or conditions introduce deliverables, IP, or other commercial elements, your funding may no longer qualify as a donation. If DAD determines that this is the case, you will need to follow UCT’s research funding processes via UCT eRA. See Stage 4: Contracting.

DAD completes the Grant Checklist required for internal UCT approvals.

/ Step 2: Secure necessary approvals

DAD oversees and manages the entire internal approval process.
 
As the PI/Fund Holder you review and sign the grant checklist. It is then reviewed and signed by: 

• Faculty Finance
• Dean
• Any additional signatories required under GEN002 Delegation of Authorities, depending on the value and nature of the donation

Higher-value donations may require approval and sign-off from: 

• Executive Director: DAD
• Deputy Vice-Chancellor: Research & Internationalisation
• Vice-Chancellor
• UCT Council 

/ Step 3: Finalise the agreement with the donor 

Once all internal approvals are in place, send the final agreement to the donor for signature.

Once signed by the donor, email a copy of the signed agreement to the Development & Alumni Department (DAD) and the applicable Faculty Finance.

Stage 5: Project setup and management

Engage frequently with the Development & Alumni Department (DAD). DAD plays a key role once a donation is secured, issuing tax certificates where required and ensuring compliance with legal obligations, including Section 18A for South African donors. 
 
They also manage donor stewardship, maintaining relationships, reporting on donation impacts, and ensuring donor intentions are honoured to encourage ongoing support for UCT’s research.
 
Keep DAD informed as your research progresses reporting back regularly on the use and impact of the donation.

Stage 6: Project closure

Closing a donation project properly ensures transparency, honours donor intent, and keeps UCT compliant with legal, tax and audit requirements while also supporting positive long-term donor relationships. 

Follow the steps below to close out a research project funded through a donation.  

/ Step 1: Confirm project completion and intention to close

Once the research activities funded by the donation are complete, or the donation is no longer required, confirm that the project is ready to be closed. This may be triggered by:

• Completion of the research activities
• Full expenditure of the donation
• Expiry of the agreed purpose or timeframe
• Agreement with the donor to conclude the project

Notify Faculty Finance and Development and Development & Alumni Department (DAD) that the donation-funded project is ready for close-out.

/ Step 2: Review donor conditions and reporting requirements

In consultation with DAD, confirm whether the donation agreement or correspondence requires:

• A final financial summary
• A short narrative or impact report
• Specific donor acknowledgement or feedback

DAD will advise on any outstanding donor obligations and coordinate donor communication where required.

/ Step 3: Financial reconciliation of the donation account

Faculty Finance will conduct a final financial review to ensure that:

• All eligible costs have been correctly charged
• No unallowable or misallocated expenses remain
• All outstanding commitments, e.g. purchase orders, accruals, salary charges are cleared

You may be asked to confirm that all research-related expenditure is complete.

/ Step 4: Resolve any unspent balance  

If a balance remains, the next steps depend on the donation terms and UCT policy:

• Unrestricted donations: Residual funds may be transferred in line with faculty or institutional rules
• Restricted donations: Residual funds may require:
  • Donor approval for reallocation, or
  • Return of funds to the donor

Faculty Finance and DAD will guide this process and ensure decisions are formally approved and documented.

/ Step 5: Compliance and records check

Before closure, confirm that any related obligations are complete, including:

• Ethics approvals, where applicable
• Data management or archiving requirements
• Asset registration for equipment purchased using the donation

All documentation must be retained in line with UCT’s audit and records management requirements.

/ Step 6: Formal project closure  

Once all financial, donor and compliance requirements are met:

• Faculty Finance closes the donation account in UCT’s financial system
• The project is marked as closed, preventing further transactions
• Development and Alumni Department (DAD) updates institutional records to reflect project completion

You will be notified once the close-out process is complete. 

Roles and responsibilities

Resources

Contacts