What’s the deal?

A government scheme to “match” donations to universities and higher education colleges.

The initiative, combined with Gift Aid, can turn each £1 of donation into as much as £2.50 for the receiving college, says the Council for Advancement and Support of Education (Case), a fundraising organisation.

The “Matched Funding for Voluntary Giving” scheme offers £200m of extra government cash for topping up donations until 2011.

Qualifying donations can be for any “philanthropic” purpose set by the college that do not involve any benefit to the donor.

Is this good?

At best, cash donations are boosted by Gift Aid tax relief and then doubled with the “matched funding”. The level of matching depends on the university or college: for those raising larger sums, the government top-up is 33 or 50 per cent, rather than one-for-one.

Individuals giving shares can write off their value against income tax and also escape any capital gains tax liability on the holding.

What’s the catch?

Gift Aid tax relief cannot be claimed by foreign residents – but their donations qualify for matched funding.

How do I find out more?

Contact individual universities or colleges.