To think our PTA's interpretation of Gift Aid rules is a bit dodgy?

[ClaryMcHairy]

The PTA are running a comedy night at £15 a head. When I bought my ticket I was surprised to be asked to gift-aid the payment. I looked a bit more carefully and saw that there was some small print saying the £15 was actually a suggested voluntary donation and it could be edited.

I've no problem with the PTA finding innovative ways to raise money, but surely this is a bit dodgy given that they have a lot of expenses to cover for the event? They're using professional comedians from an agency so wouldn't break even if people decided on mass to pay less.

In other Gift Aid situations I've had to tick a box to declare that I'm not receiving goods or services in return for my donation, but that wording isn't being used by the PTA. Is it statutory?

A charity can get gift aid on anything. Doesn't have to be a donation. Can be income of any kind. So long as they have the name and address of the person who paid and that person is a tax payer.

There is some standard wording, you can find it on the gov.uk website. It's about income tax status.

So long as they have the name and address of the person who paid and that person is a tax payer.

There's a certain amount that they can claim each year without even doing that. I can't recall it ottomh but it's on the gov website.

It is of course good practice to get the full details for any donation though.

Really? But here it says gift aid can't be claimed on "payments received in return for goods or services for example admission to a concert or a fee for a sponsored challenge"

How do museums manage them? Most are charities and when you pay for entrance you’re usually asked to give gift aid details.

You have to either pay 10% donation on top or for it to be an annual entrance ticket to get around the rules. Lots of attractions near me are changing to the annual entrance thing to avoid having to ask people for the extra 10%.

If they are publishing a ticket price, then they can't gift aid on that ticket sale.

The rules around gift aid are a litttle lax and undefined IMO. I suppose the issue is why you think is dodgy? Do you want to phone the revenue about them? That seems spectacularly mean spirited

Sprinkles if they're not doing it correctly then I will let then know so that they don't get caught out further down the line.

I have worked for charities who do this, it is perfectly legal as long as it says that it is a suggested donation and not a price. You have to be careful how you phrase it if you are writing to people offering them tickets.

You have to accept that some people won't donate but most people do give the full suggested donation and it pays off in the long run as you can claim a lot of money back.

This also happens with prize draws (not raffles as you purchase tickets), you can claim GA for the amount donated to be entered into the draw, some people choose not to donate but they are still entered if they respond.

But they have put small print saying it’s a suggested donation.. they won’t get in any trouble

A charity can get gift aid on anything. Doesn't have to be a donation. Can be income of any kind. So long as they have the name and address of the person who paid and that person is a tax payer.

This is absolutely NOT true. You cannot claim giftaid on payments for goods and services. If the PTA have said that the ticket price is a voluntary donation, that can be giftaided, provided they would be happy to let people pay less, or not pay at all. I've often gone into museums which had a stated 'voluntary donation' and not paid, when I've been skint, and they're fine with that.

It’s a shame really, when you work in the area and see the amount of profit making ventures channelling profits through charity parents. And you’re worried about a little PTA event. Such is life (and the revenue) I guess

I believe it has to be "freely given to qualify for gift aid.

It is legal, you can also do this with raffles using the same wording. It is risky to an extent, but it can increase income massively.

@Sprinklesinmyelbow, as I said, I'm worried that they will get into trouble. If it's legal, then that's fine. If it's not then I won't be the one to report them - but I will warn them that somebody else might.

I hope that you would do the same for your PTA if you thought they might be making a mistake over something.

I’d be more likely to advise them not to worry tbh.

Hmm, it is allowed but I think it needs to be clearer that tickets are by voluntary donation, suggested price £15. And still provide tickets to anyone who wants to pay less or nothing at all. If there is a minimum donation then gift aid can only be claimed above that, and obviously only from those that pay tax.

It's not the same as NT gardens etc where 10% extra means they can claim GA on the whole amount.

From the HMRC website:

Charity events
If you sell tickets to an event you’ve organised, eg a concert or fundraising dinner, payment does not qualify for Gift Aid. Even if the ticket price is higher than the cost of the event, the money made from ticket sales counts as profit and not a donation.

To qualify for Gift Aid, a payment must be a voluntary donation and not be a compulsory payment for attending an event.

Minimum donation payments don’t qualify for Gift Aid. But if someone chooses to pay more than the minimum donation, the extra amount paid qualifies for Gift Aid.

If you set a ticket price for an event and also ask for a suggested donation, the donation is eligible. You must make it clear to people buying a ticket that they can attend without making a donation, but you mustn’t give preference to those who do give a donation.

If you arrange a ‘donation only’ event where people can attend whatever they decide to give (including making no donation), then all donations would qualify for Gift Aid.

Yes all the museums & charities offering gift aid tickets have to make it clear there's a 10% donation on top of the ticket price and then they can claim gift aid on the whole lot.

However it's not uncommon for charities running minor events to make the main ticket a donation.

When you're making a gift aid claim all donations under £20 can be aggregated so you don't have to list all the details, although you still have to obtain them and get permission to claim of course.

So my old employer (small charity) is breaking the law by claiming GA on their joining fees.. Sorry for wrong advice

So is your PTA a registered charity,?

It’s not legal you cannot claim gift aid if you get something in return for your donation . So you can’t get it for concert tickets,raffles, bake sales etc. Your PTA may think they’ve found a grey area by saying the ticket cost is a donation but that only works if you can pay nothing and still get a ticket. I am Chair of our PTA which is also a registered charity and I know this is very much not allowed if it was I’d be doing it!

Ask for a ticket without paying anything and you'll find out if it's donation or not.

TBH HMRC are unlikely to care too much about a tiny charity bending the rules. They have much bigger things to worry about.