This is my 1st post and I am quite new tio fundraising although I am constantly researching the the varied topics and approaches to securing funds. I recently visited the fantastic Eden project in St Austell Cornwall and I’m eager to figure out how exactly they have setup thier memberships. The entry fee to the site for 1 adult is £16 however if you sign a declaration form this fee can be called a donation which gift aids also applies. The benifits are of course obvious not only does this mean that the nominal fee is gift aid applicable it also means that this “donation” could also potentially be match funded. It’s not obvious to me how this entrnace fee can be called a “donation” as it’s paid in return for a service. However once you have decided to call this payment a donation you automatically become a member with one free entry onto the site on the next visit. if someone could explain how an organisation would position itself or accounts to collect membership fees as a donation that would be great.
I do hope this is the right forum to post this. I look forward to your replies. many thanks.
Like most of Gift Aid, the concept is quite simple but the application can get complicated and will be expensive if you get it wrong.
Very broadly the application used by The Eden project (introduced in 2006) “… allows charities to claim Gift Aid on entrance fees it charges the public for viewing property or works, as part of furthering its charitable purpose to benefit from Gift Aid, provided they meet the donation criteria for the new Gift Aid scheme.”
Naturally there are certain criteria and guidelines, the main one being that to qualify, the entrance fee paid must be at least 10% more than the normal fee ( there is also an annual fee option).
Although HMRC has guidelines for which entrance fees can qualify, if you are thinking of utilising this I would recommend that you take professional advice or talk to HMRC directly.
As you are new to fundraising, you may also be interested in the course on Gift Aid being offered by UK Fundraising (where I am the presenter), – see http://giftaid2.eventbrite.com/ for more details
Contact me at firstname.lastname@example.org for more information
Tax law and Gift Aid are complex subjects and whilst the information given in this response is given in good faith the writer takes no responsibility for its accuracy or any actions you may take based thereon.
Highly energetic article, I liked that bit.
Will there be a part 2?
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Introduction to Gift Aid - central London, 29 January (pm)Book now