Gift for Board members, Not For Profit Organisatio

Gift for Board members, Not For Profit Organisation

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Not For Profit association has 10 Board members, all voluntary and unpaid.

Another person who is not part of the association but has benefitted from the services provided by the association wishes to give each board member gift vouchers (valued about £100), as a thank you.

Would there be tax implication for the Board members personally and for the Association on these vouchers?

Thanks for guidance on this.

 

Replies (9)

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the sea otter
By memyself-eye
09th Nov 2020 10:06

If an individual chooses to gift money or vouchers to another individual(s) that has nothing to do with the NFP - it might have an impact n the giver's IHT situation I suppose, but not on the recipient.

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By frankfx
09th Nov 2020 10:16

Does the NFP constitution have a policy on this?

My local hospice do not allow staff to benefit from gifts.

The gift is used for the benefit of the Hospice , it's patients and the families supported by the Hospice.

Furthermore it avoids any element of"doubt".

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paddle steamer
By DJKL
09th Nov 2020 10:16

Surely charity etc governance issues are more of an issue than tax.

If it is a charity they need to be ultra careful regarding transactions with the trustees etc that arise from the charity's activities.

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By WhichTyler
09th Nov 2020 12:37

If I were one of those board members I would suggest that the beneficiary gives that money straight to the charity...

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By frankfx
09th Nov 2020 13:43

OP

Given the responses what are your views?

Out of interest have any of the board expressed a view?

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Replying to frankfx:
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By aadil
10th Nov 2020 08:54

Thanks all. No it is not a charity, just a Ltd by guarantee company. I ll tell them to check the governing document first, to see if there is any guidance therein.

Some Board members would donate the vouchers to the organisation, but some want to accept it, main consideration being tax implication, rather than anything else.

I agree - I do not feel they should accept it personally.

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By Paul Crowley
09th Nov 2020 14:18

All a bit of a challenge if everyone knows what is going on.
Tax would be trivial, and a triviality

Frankfx and WhichT are giving correct directions.

Any visible reward to trustees goes against the grain

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Replying to Justin Bryant:
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By Tax Dragon
10th Nov 2020 09:36

Cryptic.

Do you consider that that might apply to the individuals (who are office-holders, not tradespeople), or in the case that the money is gifted to the organisation (which, being not-for-profit, is presumably also not trading)?

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