SCHEDULES

SCHEDULE 11 Control of donations to recognised third parties

Part I Introductory

Donations: general rules

I12

1

“Donation”, in relation to a recognised third party, means (subject to paragraph 4)—

a

any gift to the recognised third party of money or other property;

b

any sponsorship provided in relation to the recognised third party (as defined by paragraph 3);

c

any money spent (otherwise than by or on behalf of the recognised third party) in paying any controlled expenditure incurred by or on behalf of the recognised third party;

d

any money lent to the recognised third party otherwise than on commercial terms;

e

the provision otherwise than on commercial terms of any property, services or facilities for the use or benefit of the recognised third party (including the services of any person); and

f

in the case of a recognised third party, other than an individual, any subscription or other fee paid for affiliation to, or membership of, the third party.

2

Where—

a

any money or other property is transferred to a recognised third party pursuant to any transaction or arrangement involving the provision by or on behalf of the recognised third party of any property, services or facilities or other consideration of monetary value, and

b

the total value in monetary terms of the consideration so provided by or on behalf of the recognised third party is less than the value of the money or (as the case may be) the market value of the property transferred,

the transfer of the money or property shall (subject to sub-paragraph (4)) constitute a gift to the recognised third party for the purposes of sub-paragraph (1)(a).

3

In determining—

a

for the purposes of sub-paragraph (1)(d) whether any money lent to a recognised third party is so lent otherwise than on commercial terms, or

b

for the purposes of sub-paragraph (1)(e) whether any property, services or facilities provided for the use or benefit of a recognised third party is or are so provided otherwise than on such terms,

regard shall be had to the total value in monetary terms of the consideration provided by or on behalf of the recognised third party in respect of the loan or the provision of the property, services or facilities.

4

Where (apart from this sub-paragraph) anything would be a donation both by virtue of sub-paragraph (1)(b) and by virtue of any other provision of this paragraph, sub-paragraph (1)(b) (together with paragraph 3) shall apply in relation to it to the exclusion of the other provision of this paragraph.

5

Anything given or transferred to any officer, member, trustee or agent of a recognised third party in his capacity as such (and not for his own use or benefit) is to be regarded as given or transferred to the recognised third party (and references to donations received by a recognised third party accordingly include donations so given or transferred).

6

In this paragraph—

a

any reference to anything being given or transferred to a recognised third party includes a reference to its being given or transferred either directly or indirectly through any third person;

b

“gift” includes bequest.