I was recently a participant in a group study, in which there was an option for participants to donate the gratuity offered to a charity. However, I received a message from a researcher today saying that this is not possible:
Earlier this year, you participated in our three-part study... we asked you if you would be willing to donate some or all of your £4 bonus to the charity Shelter.
However, we were recently advised by our Finance Team that this was not possible. It transpires that the University of Southampton has charitable status and, therefore, is prohibited by anti-money laundering regulations from making payments to other charities. Hence, we cannot transfer the donations to Shelter.
(quoted excerpt from researcher's message, bold emphasis mine)
I searched and found the Sanctions and Anti-Money Laundering Act 2018, a 2017 'Money Laundering Regulations' consultation, and a guidance page on the Law Society of Scotland. I cannot find an obvious or direct reference to inter-charity payments, but I am not sure if I am looking in the right places.
Are charities really prevented from 'making payments' to other charities? If so, what is the ostensible motivation for such a prohibition? Does it extend to every type of payment? I suspect the law may vary in Scotland, but I would be interested to understand the situation in any part of the United Kingdom.