Setting up a support scheme for charity volunteers

Setting up a support scheme for charity volunteers

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I am treasurer for a Christian Schoolswork project/charity. I am looking to improve the set up of it. Currently our youth workers are unpaid volunteers, they choose to do it, and in return we help them with accomodation and all reasonable costs (i've posted previously re the legalities of that, but that's not my question today). We are finding that they are struggling financially, but unfortunately there is no way we could raise enough money to employ them. I am considering a 'support a youth worker' type scheme to try and improve/help them.

Basically, the idea is that people from local churches would commit to supporting one of our youth workers financially, and however else they can. For example, someone may say that they will commit to giving £20 per week to one of our youth workers, to help them throughout the year. This £20 is given straight to the worker and is not used by the charity, and in this case does not even pass through the charities hands. The money is clearly a gift, no strings attached Does anyone see anything wrong with this idea? Are there any implications for the youth worker?- untaxed income - i can't see a problem if it is a gift, would be well below the tax thresholds anyway.

What about the same scenario, but the money is paid into the charity account before being transferred to the youth worker's bank account - e.g. if the youth worker did not want their bank details given to lots of people. Would this be any different?

Would be grateful for any thoughts, or if someone has dealt with a similar situation.

Many thanks,

Mark

Replies (4)

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Teignmouth
By Paul Scholes
24th May 2011 17:17

Quick response

Hi Mark

Off the top of my head, as long as the money being given is effectively a donation/sponsorship to help support the volunteer worker I don't think it makes any difference whether it's paid directly to them or through the charity.  On balance though, if I were giving, I'd want to know it was being used properly and so would prefer it to flow through the charity.  Overall it would also go to show how effectively the organisation as a whole was working.

I know someone who has worked all her life in the 3rd sector with small local groups & charities and so will contact her to see if she has any ideas.  In the meantime though do you have a local "CVS" type service who could help?  NAVCA is the National Association of such services and you might find someone on the members directory http://www.navca.org.uk/home

 

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the sea otter
By memyself-eye
25th May 2011 17:00

not a 'gift'

is it, if you are setting it up as a scheme - and will the donors see it the same way or be aware that regular payments by them are potentially earnings in the hands of the youth workers (whose true tax status they will be unaware of).

Sorry, this looks untenable. 

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Teignmouth
By Paul Scholes
26th May 2011 09:21

Apologies

Don't know what I was thinking of, it's clear that if the charity pays anything to or for the workers (other than expenses) it would be classified as earnings, ie they become employees and so it would seem you'd have to follow the route of support donations going directly to the workers but only if the donors realise they are making personal and not charitable gifts.

In normal circumstances you'd have to do some formal fundraising towards say established funding organisations/charities in order to support employing the workers.

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avatar
By WhichTyler
26th May 2011 09:59

couple of suggestions

First of all perhaps its time for the trustees & congregation to bite the bullet and try to raise the funds they need to carry out their work, rather than rely on the volunteers being the main contributors and on you to find 'creative' ways round it.

Secondly, you could ask an organiation that is doing somehting similar (e.g the Church Mission Society) how they arrange things. I'm sure they would be happy to help, and must have addressed this issue in the past.

Hope this helps

PS this may answer your original question, but probably not in the way you hoped:

BIM62101 - Missionaries and evangelists: Income from vocation

Those who carry on missionary or similar work, especially within a religious context (if not employees or office-holders - see references below), may receive income from a vocation which is taxable under Case II Schedule D.

Taxable receipts of the vocation will include:

any sums received by virtue of the exercise of the vocation, or that enable the missionary or evangelist to continue to exercise the vocation. For example, grants or gifts (whether solicited or not) by religious bodies, charitable trusts or individuals for the maintenance of the individual or their family.

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