Part 1: Purposes, Powers and Governing Documents Section 6: Cy-près powers Second case: donations of £120 or less
Under section 63A(3), if a donor has given a total of £120 or less in one financial year (whether in a single donation, or cumulatively over the year), that donation can be applied cy-près. Accordingly, charities will not need to take steps to contact donors of relatively small sums to offer the return of their donations. A donor can, however, prevent this provision from operating by expressly stating that he or she wishes the donation to be returned in the event of the fundraising appeal failing. If such a declaration has been made, then the property is not applicable cy-près under section 63A(3). A declaration does not, however, prevent the property from being applicable cy-près by reason of the other conditions in section 63A, which apply regardless of a donor’s stated wishes.
	Section 63A(3) operates by looking at each individual gift and ascertaining, first, whether it is a gift of £120 or less, and second, whether the total gifts given by the donor in the financial year exceeded £120. For example:
A donor has given £10 per month during the financial year, totalling £120. No individual donation exceeded £120, and the total given by the donor did not exceed £120. All 12 donations of £10 would therefore fall within section 63A.
A donor has given two separate gifts of £50 and £20. No individual donation exceeded £120, and the total given by the donor (£70) did not exceed £120. Both donations will therefore fall within section 63A.
A donor has given two separate gifts of £80 and £100. No individual donation exceeded £120, but the total given by the donor (£180) exceeded £120. Neither donation will fall within section 63A(3).
	The condition in section 63A(3)(b) is that the charity trustees "reasonably believe" that the total gifts given by a donor in the financial year do not exceed £120. Therefore, the trustees will be required to take reasonable steps to ascertain whether or not this is the case. What is "reasonable" will be a question of fact in each case. The provision applies to donations made by any means, including by card payment, standing order, bank transfer or cheque. The threshold of £120 applies to the amount given by the donor, so does not include any Gift Aid that a charity might claim on the donation.
	Where a donation is made by two or more parties, the question of whether they are to be treated together as an individual donor or as separate donors for the purposes of section 63A(3)(b) is a question of fact to be determined in each case.
	The financial threshold of £120 can be amended by regulations: section 63A(7).