Receiving donations
Discussion
We're organising for a bunch of idiots to do s triathlon next year as part of a team, all participants paying their own entry fees and raising money for a couple of charities through their own and the groups just giving pages.
We are also approaching local companies for sponsorship - advertising space on t-shirts, support banners and stuff like that, and just wondering how the companies could make the payments so that they are recognised as charitable donations? We're not taking anything out ourselves, just offering advertising space to cover the cost of the t-shirts.
We are also approaching local companies for sponsorship - advertising space on t-shirts, support banners and stuff like that, and just wondering how the companies could make the payments so that they are recognised as charitable donations? We're not taking anything out ourselves, just offering advertising space to cover the cost of the t-shirts.
What are you going to do with the money when you receive it?
It seems to me that the income is normal sales income, which will be taxable and VATable if your business is VAT registered. You are essentially selling a service (advertising).
However, if you then as a business donate the money to a recognised charity, then your business can claim tax relief on the donation.
It seems to me that the income is normal sales income, which will be taxable and VATable if your business is VAT registered. You are essentially selling a service (advertising).
However, if you then as a business donate the money to a recognised charity, then your business can claim tax relief on the donation.
No, we're not a business, just a regular couple organising a (large) group of friends and acquaintances to enter a triathlon, which is organised and run run by a company that is not linked to us in any way.
Any excess money goes straight to the groups nominated charities, we wont take a single penny out except for the T-shirts and banners, which gets paid straight to the manufacturers (again, not us).
Any excess money goes straight to the groups nominated charities, we wont take a single penny out except for the T-shirts and banners, which gets paid straight to the manufacturers (again, not us).
mondeoman said:
Magic919 said:
Get the local firms to make their donations out to the charity directly.
That, sadly, doesn't get the T-shirts paid for. Personally I'd just write the cheque out and put it in the books as a donation, but not sure thats entirely legit.
Eric Mc said:
What "books"?
If you are not a "business", in what capacity are you accepting and paying donations?
You were talking about placing advertising - which is what made me think you were running some sort of business.
I meant if I was running a business and made a payment for something like this I'd just take my chances and pay for it, then mark it as a donation in the business accounts (books).If you are not a "business", in what capacity are you accepting and paying donations?
You were talking about placing advertising - which is what made me think you were running some sort of business.
UKTriathlon organises the event (one of their regular ones), we've simply cajoled about 30 people (so far, target is 100) to sign-up for one of these, with a view to them all generating donations to two charities - Cancer Research and Birmingham Childrens Hospital. As a result of the facebook and twitter exposure, some local businesses want to help with paying for team t-shirts and so on, and we're just trying to work out how they can do that in such a way that any payment they make is recognised as a donation and they can claim the relevant tax relief on it. Ideally no payments would come direct to us, we don't want to get involved in opening bank accounts or running a charity.
A business can claim against tax donations it makes to charity.
Limited companies will have the cost deducted in their profit and loss account and will get a reduction in their Corporation Tax bill.
If the business is a sole trader, it might be better for the individual proprietor to make a personal donation rather than through the business.
If it is made personally, it can be made under Gift Aid and the charity will get the 20% tax relief directly from the government. If the individual is a higher rate taxpayer they will be able to get a reduction in their personal tax liability by entering the charitable donation details in the appropriate section of their self assessment tax return.
It is far better for the business or the individual to donate directly to the charity rather than have them route their donation to any sort of non-charity third party.
Limited companies will have the cost deducted in their profit and loss account and will get a reduction in their Corporation Tax bill.
If the business is a sole trader, it might be better for the individual proprietor to make a personal donation rather than through the business.
If it is made personally, it can be made under Gift Aid and the charity will get the 20% tax relief directly from the government. If the individual is a higher rate taxpayer they will be able to get a reduction in their personal tax liability by entering the charitable donation details in the appropriate section of their self assessment tax return.
It is far better for the business or the individual to donate directly to the charity rather than have them route their donation to any sort of non-charity third party.
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