Campaign Group and BusinessMembership / Donations

Campaign Group and BusinessMembership / Donations

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'I’ve established a campaign group arguing for transport improvement in a city region.  It's a LTD Co. by Guarantee with not for profit articles of association.  We are trying to deciding on the best way to raise money from other businesses to fund our activities. We have two options: Membership Fees or Donations.  But I'm not clear on how our funding businesses would account for these and any potential problems with either approach.  We need to get this right before we ask.

Membership Fees:

For an annual membership fee member companies would get benefits like newsletters, be able to inform our work and we'd campaign on their behalf.  

Would membership fees be considered a legitimate business expense?

Would the membership fees be exempt from Corporation Tax for the paying member companies?

Donations / Gifts: 

Alternatively, we could provide free membership and ask for donations. I’m assuming that a gift from one company to another company isn’t a legitimate business expense.  Would this mean that a company is not be able to make a donation (it is illegal?) or just that it would pay corporation tax on it?

Thanks, Andrew

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