A gift by definition is ‘the transfer of money’ or ‘goods, etc. without the direct compensation that is involved in trade’.

If a person is paying for the pleasure or pain that is involved in competing in an event; this cannot be considered to be a gift and therefore, the money paid is not Gift Aid applicable. If, however, they decide to raise additional sums to that required in order to allow them to compete; this would indeed be classed as a gift and would be Gift Aid applicable.

For example, if a charity decides to put together a fund-raising event that costs £100 per person, but only people who raise £500 are allowed to take part; Gift Aid cannot be claimed on the £400 difference; as this extra funding is not a gift, but a prerequisite so that the person can take part in the event. If this same person then went on to raise £800; Gift Aid could be claimed on the additional £300; as this is truly a gift and are giving money to the charity for no personal gain; i.e. there is no benefit.

Whenever in doubt about whether monies raised or donated are allowed to have Gift Aid claimed on them or not, it is prudent to check the dictionary definition of ‘gift’.