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Gift aided donation

 A group of neighbours regularly run events in each other's houses to have a good time and raise money for charity. A recent example was a wine trivia evening where participants paid £10 each and the profit of £100 approx would go to the nominated charity. Can the person organising the event state that the donation was his and gift aid it or is the donation effectively coming from the 20 or so attendees so you would need 20 gift aid forms. The intention is to raise £1000 in this way over the course of a year and obviously if it could be gift aided that would be a significant benefit to the charity.

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01st Jun 2012 12:36

You'd need 20 gift aid forms...

...because each individual is deducting tax (which is later reclaimed by the charity) from his or her payment. The individual is then liable to pay over the tax he or she has deducted, but in practice that seldom happens because the individual is entitled to tax relief in the same amount.

If any individual is not liable to tax, then no relief is due, and the tax deducted would have to be paid over, theoretically at least.  Can you be certain that every one of your neighbours is liable to tax? As we all know, just because they give every sign of affluence that doesn't mean they pay tax!

If you signed the whole lot as gift aided on your own account, that would be tantamount to saying that the 'profit' belonged to you. I don't think you'd want to go there, for all sorts of reasons.

I love the idea though!

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