Other tax effective issues:

Sponsored events / Gift Aid and schools / Gift Aid brand

See here for sponsored events, and below for Gift Aid and schools and Gift Aid brand

Sponsored events

Gift Aid can be used to enhance the amount received from sponsored events. However, the money raised from a sponsored event has not been given by the individual who has been sponsored. Therefore it is not his or hers to give as a Gift Aid payment – it is for the sponsor to Gift Aid it.

The person being sponsored may ask the sponsors to make a separate Declaration to the church. This could be in a one-off type Declaration envelope.

However, it is possible to design a sponsorship form that can also be used as a Gift Aid Declaration form. The HMRC Charities (formerly Inland Revenue) has an example form in their Detailed Guidance notes for Charitiest. Where HMRC Charities approval for a sponsor/declaration form has been obtained, the form can be used as a substitute for the R68(New Gift Aid) form. In this case, the claim for the sponsored event should be made separately from other claims.

The sponsored participant will need to ensure that the amount paid over to the church with the sponsor form matches the amount on the form. The money can be paid in to the participant’s bank, and the participant can write a cheque for the amount to accompany the form.

For very large sponsored events, there is a modified procedure possible. The HMRC Charities should be contacted prior to using this procedure.

For further details on sponsored events, please contact Church House, see the HMRC Detailed Guidance notes for Charities, or contact HMRC Charites (0870 3020203).

Gift Aid and Schools

Schools, just like any other charity, can take advantage of Gift Aid for any donations freely given to the school. Every school is charitable via the purpose “for the Advancement of Education”, and they are exempt from registering with the Charity Commission. The main work of the school is part of the exempt charity.  Anything else run by the school is (probably) charitable, for example, building funds, PTA, Governors Funds, Friends of the School. The fund may need to be registered if any of these three conditions apply:

• The annual income is over £1000
• There is a permanent endowment
• It occupies land or buildings

However, it may not be required to register - the Commission can make an Accounting Concession. For more details contact the Charity Commission. The school will need to register with the HMRC Charities for tax purposes.

Schools do need to be aware of the benefit rules. For example, school fees, school uniforms, school trips (in most circumstances) and lessons cannot be subject to Gift Aid. The need for a complete audit trail is also just as important as for churches.

Gift Aid Brand

The Gift Aid brand has been funded by the Giving Campaign, supported by the voluntary sector and the Government, which was set up to increase charitable giving in the UK. The brand has been created to raise awareness and take up of Gift Aid among both charities and the giving public. Any charity can use the brand as part of its fundraising. The brand is:

The Giving Campaign was closed in June 2004, but the published materials can still be downloaded from the Giving Campaign, which describes when and how this Gift Aid Brand can be used.