A friend was asked to supply a service to a charity.
He agreed to supply the service but has asked to donate the service instead of being paid and then claim tax relief on the donation.
The charity has said that they can't do this as it is not a personal donation.
Section 134 of the 2005 SORP would appear to allow this - Quote,"Donated services and facilities recognised in financial statements would include those usually provided
by an individual or entity as part of their trade or profession for a fee"
http://www.charity-commission.gov.uk/library/guidance/sorp05text.pdf
What can i quote to the charity to convince them that this type of donation is allowed
Any comments or suggestions much appreciated
Replies (2)
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You are confusing accounting with tax!
All donations, in cash or in kind, should be recognised in the accounts as per SORP
Gift Aid for an individual is a specific relief for monetary donations as set out in Income Taxes Act 2007 Sections 413 onwards.
He needs to take the money and separately give a donation,
Chris Smail www.langer.co.uk