Charity Donations
Discussion
Hi there,
I run a small betting app, which some of you may have seen before on this business thread. Unfortunaly I broke the advertising rules and my original thread relating to my business, asking for social media help, was deleted.
However I did have, and still do have, genuine business related questions.
As a fully legitimate betting business with all the gamlibling licences in place - I am planning on helping out local football clubs by letting them run a SoccerPots league but giving them a portion of the pot (50% to the club) and 50% to the winner(s).
This being a very similar scheme to what local football clubs do at present, as they tend to run raffles or lotteries and the winner gets 50% of the money raised, whilst the other 50% goes to the club. This is of course all tax free as its a lottery.
We are working with local football clubs and allowing then to setup and run their own leagues.
My question is regarding how to get the 50% over to the clubs as tax efficiently as possible. Obviously football clubs are not charities and neither are we.
Does anyone have any advise on this please?
Many thanks
Nunners
I run a small betting app, which some of you may have seen before on this business thread. Unfortunaly I broke the advertising rules and my original thread relating to my business, asking for social media help, was deleted.
However I did have, and still do have, genuine business related questions.
As a fully legitimate betting business with all the gamlibling licences in place - I am planning on helping out local football clubs by letting them run a SoccerPots league but giving them a portion of the pot (50% to the club) and 50% to the winner(s).
This being a very similar scheme to what local football clubs do at present, as they tend to run raffles or lotteries and the winner gets 50% of the money raised, whilst the other 50% goes to the club. This is of course all tax free as its a lottery.
We are working with local football clubs and allowing then to setup and run their own leagues.
My question is regarding how to get the 50% over to the clubs as tax efficiently as possible. Obviously football clubs are not charities and neither are we.
Does anyone have any advise on this please?
Many thanks
Nunners
Not 100% this would work but will throw the idea into the ring anyway.
If you create a Charity and place this between you and the clubs, that charity can then benefit from the Gift Aid scheme and recover 20% from HMRC on the money if receives from donations. It is then this charity that distributes funds to the clubs.
In turn, your business is making a charitable donation on which tax relief is applicable which isn't the case on the model you have at present.
You'd need look into the practicalities and legals but something along these lines might work.
If you create a Charity and place this between you and the clubs, that charity can then benefit from the Gift Aid scheme and recover 20% from HMRC on the money if receives from donations. It is then this charity that distributes funds to the clubs.
In turn, your business is making a charitable donation on which tax relief is applicable which isn't the case on the model you have at present.
You'd need look into the practicalities and legals but something along these lines might work.
StevieBee said:
Not 100% this would work but will throw the idea into the ring anyway.
If you create a Charity and place this between you and the clubs, that charity can then benefit from the Gift Aid scheme and recover 20% from HMRC on the money if receives from donations. It is then this charity that distributes funds to the clubs.
In turn, your business is making a charitable donation on which tax relief is applicable which isn't the case on the model you have at present.
You'd need look into the practicalities and legals but something along these lines might work.
Hi SteveBee - sounds like an interesting model. I think I'll contact an accountant regarding the legalities.If you create a Charity and place this between you and the clubs, that charity can then benefit from the Gift Aid scheme and recover 20% from HMRC on the money if receives from donations. It is then this charity that distributes funds to the clubs.
In turn, your business is making a charitable donation on which tax relief is applicable which isn't the case on the model you have at present.
You'd need look into the practicalities and legals but something along these lines might work.
Thanks Nunners
Algarve said:
Have the football club invoice you for their 50% and let them deal with it in however they normally deal with their income?
It seems like you're maybe overcomplicating this. 50% invoiced out to the football club and 50% expensed as a prize and you'd owe nothing to anyone tax wise.
Hi Algarve - just what my missus said to me.... at the end of the day, they would be getting a great tool for raising cash, so let them deal with any tax implications.It seems like you're maybe overcomplicating this. 50% invoiced out to the football club and 50% expensed as a prize and you'd owe nothing to anyone tax wise.
Thanks Nunners
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