A colleague is planning to do a sponsored run to raise money to buy his disabled mother a stairlift. Those providing sponsorship would be well aware of what and who he was raising money for.
the question is would he, or his mother, be liable for tax on the money raised ?
It’s an interesting question.
If the money goes into your colleague’s bank account (or his mother’s) it will be dealt with as ordinary income.
Ways around this :
First and simplest would be to find a local charity who will act as Trustees for the money. Your local CVS may have an appropriate fund, or maybe a charity with whom they have existing contacts might do the job.
Second option would be to appoint a Trustee – a Solicitor would be able to do this for you.
Third option would be to set up your own bank account, with two signatories (not your colleague and his mother!). This account then pays for the stairlift.
You should tell them to make sure they know what they’ll do with any surplus – it could be very difficult to give money back afterwards!
Gerry Beldon FInstF
Director, 26-01 CIC
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