Acting as intermediary for collecting chaitable donations

In my opinion - as long as there is some clear paperwork from the customer - you are only acting as their agent in passing on their donation. It must be optional and not part of their holiday cost.

I would simply set up a Balance Sheet account to hold these donations - it is not your income or your expenditure. You will just need to split the amount received into income and donation. If you charge VAT there would be no VAT on this portion it is outside the scope - it's fairly easy to set up on your accounts system I would guess.

Your payment would simply be split between the balance sheet account and your normal posting for charitable donations.

Mike

I agree. That is how churches deal with members of the congregation giving donations to other charities which the church simply pass on.

Usually a designated 'Mission' Fund with donation s in, gift aid and then donations out, often a balance at the end of the year.

The church decides who is getting the money ergo the church shows it on iits accounts.

However in the OP's case, where not a charity themselves, I agree with the  proposed treatment.