Donations, Gift Aid and Other Fundraising

Use this section for the money a charity receives directly from donors, whether as one-off or regular gifts, through sponsorship of an event, under a will or through a raffle or lottery. It brings together the forms and guidance a charity needs to accept those funds properly and to claim the tax relief available on them.

When can a charity accept or refuse a donation?

Trustees are entitled to accept donations, but they should know where the money is coming from and may need to refuse a gift that would damage the charity or that comes with unacceptable conditions. The Guidance Notes: Know Your Donor/Refusing Donations explains the checks to make and when refusal may be justified. The Donations - Due Diligence Questionnaire is a form for gathering the information the charity needs about a significant donor.

How does Gift Aid work?

Gift Aid allows a charity to reclaim basic rate tax on donations from UK taxpayers, but only where the donor has made a valid declaration. The Single Donation Gift Aid Declaration Form, the Multiple Gift Aid Declaration Form Templates and the Sponsorship and Gift Aid Declaration Form, which is for sponsored events, are declaration forms designed to satisfy HM Revenue and Customs requirements.

How can a charity encourage legacies?

Gifts under wills are a major source of income for many charities. The Guidance Note: Wills - Wording for Charity Legacies explains the forms a legacy can take and the wording that avoids common problems. The Legacies to charities (Wills) and Legacies to charities (Codicils to Wills) provide suggested wording that a charity can offer to supporters and their advisers.

What are the rules for lotteries and raffles?

Raffles, prize draws and lotteries are a popular way of raising funds but are regulated. The rules depend on how and where tickets are sold. The Guidance Notes – Law and Practice of Running Lotteries explains the legal framework. The Description of Lawful Raffles sets out the types of raffle that can lawfully be run and the conditions that apply to each. The Checklist for Lawful Raffles is a practical check before an event.

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