Regardless of whether a charity is on the front line of the pandemic, all charities have been equally affected by the cancellation of fundraising events.
HMRC has now drafted new rules regarding supporters who refuse a refund and choose to make the ticket price a donation. Previously, for this amount to be eligible for Gift Aid, the donor would be required to receive the refund and re-donate the amount, causing additional administration costs. This has now been simplified so that if a supporter wishes to donate the cost of their ticket, Gift Aid can be automatically applied on completion of a Gift Aid declaration. There are conditions to this – it must be clear that the supporter has received no benefit in return for their donation.
These new rules only apply to events that have been cancelled – if an event has been simply postponed, Gift Aid cannot be claimed in the interim. It is expected that these new, temporary rules will help charities to maintain cash flow in a period when donations are expected to decrease with so many people facing business uncertainty and reduced income.