Are donations taxable?

Are donations taxable?

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Client is a community centre, not registered as a charity. It does have taxable income as it provides tuition and charges for it.

However parents also donate small amounts occasionally. Also the centre holds fund raising dinner twice a year to raise funds for the day to day operations.

Are these donations and Fund raising income taxable seeing they are not trading income?

Thanks

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By WhichTyler
30th Sep 2011 13:41

I think so...

See fourth bullet point here:

http://www.hmrc.gov.uk/manuals/bimmanual/bim41810.htm

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By George Attazder
30th Sep 2011 13:55

Not being registered as a charity...

... doesn't mean that it isn't a charity.  You need to first consider whether, as a matter of fact, it is a charity, and then consider whether or not you need to register with the Charities Commission.

If it is a charity, but isn't required to register, the income will most likely fall within one of the charitable exemptions.  If it is a charity, and is required to register, it needs to register.

If it isn't a charity, I agree with WhichTyler, and I can't see why any of the income you refer to wouldn't be taxable.  In that case, you want to turn it into a charity and revisit the above paragraph.

Have a good look through these sources:

http://www.charity-commission.gov.uk

http://www.hmrc.gov.uk/charities/

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