So, you want to get started on collecting all those offers of sponsorship. Hot off the press, here's a form to collect those generous offers.
There are a few bits of small print to ensure that we can make these gifts as tax-efficient as possible ...and legal :
- When you get the donation, that is the right time to make sure you get the gift aid box ticked and all necessary data filled in. Just remember that if you go to that extra trouble it’s worth 28% extra…saves a lot of extra conversations if we get this right.
- You must still keep all of the original sponsor forms available for any audit of your claim by HMRC. Paper declarations can be kept in their original format. Or they can be scanned and stored electronically, as long as the records can be searched and individual declarations located as required.
- You can only claim Gift Aid on the donations where the sponsorship form has been correctly completed by the sponsors.
- Donors who want their sponsorship payments to be treated as a Gift Aid donation must: (1) give their full name (at least their last name and initial) - Nana, Uncle Fred etc are not sufficient (2) give their home (not work) address - as a minimum their house name/number and their full postcode is acceptable - HMRC accepts that some donors, for example in the workplace, may not want to give their full home address (3) tick the column to indicate that they want your charity or CASC to treat their sponsorship payments as Gift Aid donations
Payments that don’t qualify for Gift Aid include: - donations of money from a company
- gifts with enforceable conditions about how your charity or CASC should use the money, for example on condition that it buys goods or services from the donor [NB not restricted gifts per se]
- a 'minimum donation' where there is no choice about payment - this is simply a fee for goods or services, it is not a gift
- gifts made using ‘charity vouchers’ or ‘charity cheques’ provided by another charity
- payments where the sponsored person receives ‘benefits’ above a certain level
- you cannot gift aid a registration fee for a Challenge charity event, you can only gift aid what you receive in sponsorship
That’s it ...
Posts
.JPG)
