Kimberley Smith - 29th Aug, 2023
HMRC has specific restrictions as to whether Gift Aid can be applied / claimed if the donor is receiving a 'benefit' in return for the donation (such as admission to an event, a raffle ticket, or an item purchased in an auction).
When donors make a donation to charity through Wonderful, they are given the option to apply Gift Aid, which allows the charity to claim an extra 25p for every £1 donated.
Donors, fundraisers and charities using the Wonderful platform should be aware of the rules around Gift Aid and how these rules apply to their particular fundraising event/campaign.
The HMRC guidance on Gift Aid Chapter 3.4.5 states:
Payments to a charity in return for services, rights or goods are not gifts to charity and so are not eligible for the Gift Aid Scheme. For example, the following cannot come within the Gift Aid Scheme:
payment for admission to events (jumble sales, concerts)
payment for raffle or lottery tickets (including 100 clubs) – the payment to purchase a raffle ticket from a charity is not a gift but a payment for the right to enter the raffle – it does not matter that the chance or expectation of winning a prize is small or that the prize is of little value
HMRC Gift Aid guidance
For more information, take a look at the official guidance below:
Gift Aid guidance for charities
Also see specific information on:
Selling tickets for a charity event
If you are unsure whether Gift Aid should be applied on a particular fundraising event/donation, please don't hesitate to contact us via the live chat button at the bottom of this screen.
