Charity Events

[Anais nin Carms]

As you know we have a charity event coming up and I would like to know a little bit more about stopping the tax man being able to take his chunk out of of what is collected.

Seeing all sorts of charity events listed oin here I thought it might be a good topic to debate.

Did you know that if you submit a special form with your donation you stop the tax man getting aound 11% (i think ) tax revenue out of it ?

As this event has no overheads I want to make sure every penny we collect gets to the British Heart foundation so I am eager to get this in place.

What I want to know is can I fill in one form for the total collected from the door and the raffle ..as me being the giver, or do I need to arrange for every person to fill in a form that pays an entrance fee to stop the tax man grabbing a chunk?

[Sharon Cooper]

The covenant tax scheme for charities is a really good system I think.

Would the BHF themselves not be able togive you the information you need? Just asking this because when we did a charity event for the NSPCC they were extremely helpful (and knowledgeable of course) This website might be useful also: https://www.hmrc.gov.uk/index.htm

Sharon

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[Jumpinjoan]

Can't you use Gift Aid?

I know we use it in our charity shop when people give us cash donations.

Although saying that, it may be different if you are having a dedicated event specifically to raise money for charity.

Hope you find a way round it as it makes my blood boil that the tax man expects a share of peoples good will. Grrrrr.

[Neil Rushton]

As you know we have a charity event coming up and I would like to know a little bit more about stopping the tax man being able to take his chunk out of of what is collected.

Seeing all sorts of charity events listed oin here I thought it might be a good topic to debate.

Did you know that if you submit a special form with your donation you stop the tax man getting aound 11% (i think ) tax revenue out of it ?

As this event has no overheads I want to make sure every penny we collect gets to the British Heart foundation so I am eager to get this in place.

What I want to know is can I fill in one form for the total collected from the door and the raffle ..as me being the giver, or do I need to arrange for every person to fill in a form that pays an entrance fee to stop the tax man grabbing a chunk?

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Hi Carms,

Tax is on profit not income so if you pay all your profit - ie income left after costs - from the event to the British Heart Foundation and get a receipt from them, surely the gig will have made nothing and therefore you will have no profit to pay tax on?

The money the British Heart Foundation becomes part of their income which I suppose then have to account for tax wise, but do registered charities pay tax anyway?

Neil

[Anais nin Carms]

Thanks everyone for trying to clear this up.

I have been on the BHF website , and actually have had a lovely letter from them thanking me for the the cheque I sent , that I recieved frm Cathy & Pete Lister towards the special day fund.

The BHF have a gift aid certificate which can be downloaded , this must be available for all charities.

The way I read it as long as the person giving the monies has paid the same value in tax over the last tax year this then allows the sum collected to be free of tax deduction once received by the charity.

So anyone collecting from special events needs to consquider getting a gift aid cert , cause it really does bump up the proceeds... or stop the tax man getting his/her hands on a portion of it.

[Guest lifeandsoul]

Thanks everyone for trying to clear this up.

I have been on the BHF website , and actually have had a lovely letter from them thanking me for the the cheque I sent , that I recieved frm Cathy & Pete Lister towards the special day fund.

The BHF have a gift aid certificate which can be downloaded , this must be available for all charities.

The way I read it as long as the person giving the monies has paid the same value in tax over the last tax year this then allows the sum collected to be free of tax deduction once received by the charity.

So anyone collecting from special events needs to consquider getting a gift aid cert , cause it really does bump up the proceeds... or stop the tax man getting his/her hands on a portion of it.

If you are the 'donor' to the charity then you would be responsible for 'franking' all of the tax, which if ther were loads of donations that you were collecting could be an issue. Furthermore, you could be denying the actual giver higher rate tax relief. ie Cathy and Pete might want to be seen as being the donor, in order that they get the benefit of gift aid, rather than passing it on and routing it through you.

[Anais nin Carms]

If you are the 'donor' to the charity then you would be responsible for 'franking' all of the tax, which if ther were loads of donations that you were collecting could be an issue. Furthermore, you could be denying the actual giver higher rate tax relief. ie Cathy and Pete might want to be seen as being the donor, in order that they get the benefit of gift aid, rather than passing it on and routing it through you.

I am very confused now ? so what you are saying is as well as the charity not having to pay tax , the giver gets a tax benefit too?

Actually I didn't send a gift aid cert with the cheque mentione above, I am thinking more on the lines of when we have the entrance monies from the do we are putting on. Are you saying I should get each person to sign a gift aid certificate?

Edited July 23, 2009 by Carms

[Guest hatman]

Carms

Please let me know if you are still looking for raffle prizes

Would love to help