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’.
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6 Comments | Leave a comment
To be honest, no we don’t think it is. We are trying to create a site where people can be frank and open about Gift Aid; able to discuss any concerns they may have or questions they may want answered. Without sites like this we are not able to assist charities in making the most of Gift Aid, which is being hugely under-utilised.
Comment by Gina Marwick 05.23.07 @ 11:56 amBtw, as this is a Blackbaud blog, and presumably created to help promote Blackbaud products (as well as frank and open discussions etc), then the link on the right-hand side to your own Gift Aid product/service isn’t working.
Cheers
Comment by Nikos 06.01.07 @ 10:31 amThanks - we’ve fixed the link now!
Comment by Adrian Cutcliffe 06.05.07 @ 1:26 pmSince the Gift Aid system is for UK charities, it would be nice if the dates could be in UK format.
I disagree that its a pointless website, it’s a fantastic platform for discussion, particularly the ‘gray areas’ not covered well in HMRC’s Chapter 3 guidance notes.
Comment by Reza Islam 07.10.07 @ 4:43 pmHow refreshing to see this point made about “what is a gift”. It may seem obvious that Gift Aid has to be related to gifts but you would be surprised how many times I am asked about Gift Aid on payments that aren’t. As a tax adviser to charities and speaker at charity tax seminars, it is the first point I make about the essential elements of Gift Aid
Comment by Tony Austin 04.03.08 @ 10:18 amLeave a comment
Isn’t this blog a little bit pointless?
Comment by Annon 05.21.07 @ 9:17 pm