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GIFT AID> Sponsorship Monies and Gift Aid

Posted on 24 March 2004 at 10:20 pm
Viewing 6 posts - 1 through 6 (of 6 total)
  • Anonymous
    24 March 2004 at 10:20 pm #1227

    Date: Thu, 31 May 2001 11:18:18 -0000
    From: Jane McGeary

    Does anyone have a clear understanding of the issues surrounding the eligibility of sponsorship monies being gift aided?

    I have read and heard conflicting reports from charity publications and some tax documents.

    The arguments seem to range from a Yes, sponsorship monies cannot be gift aided because:

    – Running the marathon or taking part in the cycle (for example) could be construed as a benefit for the individual especially when it concerns bonded places.

    – The support/sponsorship given isn’t necessarily given to the cause but to the individual collecting.

    On the other hand:

    – It is easier to argue that running in a marathon is a benefit but a sponsored slim for example cannot be classed in the same bracket. Are there different rules for different sponsored events?

    – At the end of the day, the monies do go to a charitable cause.

    Any input would be greatly received.

    Thanks,
    Jane McGeary
    Community Fundraiser, Skylarks Winged Fellowship Trust
    (Providing holidays for people with disabilities and planned breaks for their carers.)

    Adbolton Lane
    Nottingham
    NG2 5AU
    E.mail: wftappealsmid@hotmail.com
    Charity Number: 295072

    Anonymous
    24 March 2004 at 10:20 pm #5385

    Date: Fri, 01 Jun 2001 08:31:16 +0100
    From: Tania Cohen

    Money from sponsored events is eligible – as long as the SPONSOR has Gift
    Aided – not the person who has participated in the event. Although the
    event participant may have some benefit, the money is coming as a donation
    from the sponsor, who usually receives nothing in return. The money raised
    from a sponsored event does not belong to the individual who has been
    sponsored and is not his or hers to give as a Gift Aid payment.

    Charities can design a sponsorship form that can also be used as a joint
    declaration form. The inland revenue suggested format is for the
    declaration to be placed at the head of each sheet, with each sponsor being
    able to opt to have his or her
    sponsorship money paid to the charity as a Gift Aid donation by, for
    example, ticking a box.

    A copy of the model sponsorship gift aid form is on the inland revenue website
    http://www.inlandrevenue.gov.uk/charities/appendix_b2.pdf

    The only fiddly thing is that you need to think about how you are going to
    administer it before you do it. Most charities do not record details of
    individual sponsors on their database to be able to include them in their
    normal tax claim. You may need to do a separate sheet for the claim for
    the sponsored money – You don’t need to record the name of every sponsor,
    but you need to enter the total gift aidable amount for each sponsorship
    form on a spreadsheet and send photocopies of the sponsorship forms as
    evidence of the individual taxpayers.

    Hope that helps.

    Tania Cohen
    Database Marketing Analyst

    t: 020 7505 2171
    e: [email]taniac@shelter.org.uk[/email]

    Shelter
    88 Old Street
    London

    Anonymous
    24 March 2004 at 10:23 pm #5386

    Date: Fri, 1 Jun 2001 09:49:58 +0100
    From: Nigel Parkes

    We were discussing this only yesterday; along with how the Revenue are
    checking whether donors are tax eligible for gift aid? (donors nearing
    retirement etc).

    Last year I saw an advertisement for an organisation that offers to collect
    gift aid on sponsorship money for charities.

    Nigel Parkes
    Shaw Trust Fundraising

    These are my own views and not neccessarily those of my employer
    (unless specifically stated to be so)

    Shaw House, White Horse Business Park, Trowbridge, Wiltshire, BA14 0XJ
    Tel: 01225 716300
    Fax: 01225 716334

    email: [email]nigel.parkes@shaw-trust.org.uk[/email]
    Website: http://www.shaw-trust.org.uk

    Anonymous
    24 March 2004 at 10:24 pm #5387

    Date: Fri, 1 Jun 2001 09:56:47 +0100
    From: Chris Banting

    Colleagues,

    Using the Inland Revenue model, we have designed a Gift Aid sponsorship form
    specific to our charity. It is now the only form in use throughout the
    charity.

    As advised by the IR notes, we sought and gained approval for our version of
    the form.

    It may be used for personal sponsorship by all classes of donor (e.g.
    schoolchildren, adults) and for all types of event. Lastly the form can
    cater for both applicable and inapplicable donations within the same form.
    The internal accounting protocols are, apparently, reasonably easy to set
    up.

    Chris Banting
    Area Fundraising Manager
    01460 281171
    **************************************************
    To buy anything – help CLIC – go via
    http://www.free2give.co.uk/clic

    To learn more about CLIC or childhood cancer or leukaemia visit
    http://www.clic.uk.com

    Anonymous
    24 March 2004 at 10:26 pm #5388

    Date: Fri, 1 Jun 2001 14:03:45 +0100
    From: Geoff Grant

    Dear All

    I have noted this debate re Tax and raised via sponsorship with interest.

    On sponsorship forms we ask for name and address and provide a tick box to
    state if they wish us to claim back the tax together with the normal
    statement in regard to tax eligeability etc, as on most standard donation
    forms.We keep the forms as our proof and handle in the normal way.
    There is some debate around tax reclaims and kin of the person being
    sponsored. I would certainly be interested in some expert opinion!
    Logically, I would believe, it comes down to is the person being sponsored
    receiving any personal benifit. We infact would only be claiming back on
    cheques made out to the charity and not any cheques from the sponsee (if
    that is the right term).

    Currently we have just started to try the services of ‘Justgiving’ in regard
    to a chap we have walking from Land End to John ‘O’ Groats. The ruling is
    quite specific on their site, see our page on their site:
    http://www.justgiving.com/Group_Giving/?id=CGG/200
    and they (for a fee) do the tax claiming for us. I will gladly inform
    anyone who wants to know how this little venture goes.

    Geoffrey Grant
    Dyslexia Institute
    [email]ggrant@dyslexia-inst.freeserve.co.uk[/email]

    Anonymous
    24 March 2004 at 10:27 pm #5389

    Date: Fri, 1 Jun 2001 15:32:40 +0100
    From: Nigel Parkes

    For information only, I’ve just found the details of the organisation I
    mentioned earlier re Gift Aid Tax Software:

    http://www.cleaford.co.uk/gats.htm

    Nigel Parkes
    Shaw Trust Fundraising

    These are my own views and not necessarily those of my employer
    (unless specifically stated to be so)

    Shaw House, White Horse Business Park, Trowbridge, Wiltshire, BA14
    0XJ
    Tel: 01225 716300
    Fax: 01225 716334

    email: nigel.parkes@shaw-trust.org.uk
    Website: http://www.shaw-trust.org.uk

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