Advice on handling monies from Fundraising

uknitty

Hi members

Just hoping to get some advice and guidance for a friend. Her little boy has cerebal palsy and the family are looking to fundraise £50k to send the little fella to America to undertake surgery that will hopefully prevent future use of a wheelchair.

The family understand that because the funds to be raised are only for the benefit of one person, that a charity cannot be set up, and as such the donations will not be eligible for gift aid.

I have concerns that if donations are being recieved just in to a paypal account in the parents name that this will be counted as taxable income, further eating in to the funds required for the operation.

I would be most grateful if someone who is experienced in fundraising issues could advise on the best practice for handling funds intended as a donations. What is the best way to ensure that this is kept separate from the family's personal finances from a tax point of view, and also to ensure that the maximum benefits and taxable allowances are claimed.

Thanks in advance for your help

Uknitty (Student Member)

Monsoon

Donations/gifts are not taxable. As long as the paper trail is very clear that these are specific funds for their boy, from fundraising, I can't see this being a problem.

I would try to open a separate bank account in the "charity" name (e.g. Billy's American Surgery Fund").

Shame on the gift aid.

I can't think of any other issues at present.

PGM

Wonder if you can contact the gift aid team and try and get a rulling on the matter?

uknitty

Thanks guys for your advice.

To reclaim gift aid you either have to be registered as a charity with the charities commission (and fundraising for one person does not qualify for charity status)

OR

Your charity has to earn under £5000. I wondering if this second option means is anyone who is setting up an event with the intent to provide those funds as a donation can reclaim gift aid as long as they don't raise more than £5,000 ?

gallow

Can't the parents attach the fundraising to some existing charity? that would see gift aid being used and the issue of separate funds.

Mike