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Gift Aid and Woodturning clubs

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Robin Goodman:

I understand that some clubs claim Gift Aid, resulting in tax on members subscriptions being reclaimed.
   
Our club recently had a CHA1 application for ‘Recognition  as a Charity for Tax Purposes’  (applicable where income < £5.000pa) turned down by HMRC,  primarily on the basis that the main aims of the club, as given in its Constitution,  such as fostering friendship amongst woodturners, imparting knowledge and expanding the craft of woodturning, are apparently not charitable purposes in law.
 
I would be interested to hear about any clubs that do claim gift aid, with any advice on how to succeed with an application or how their aims differ and are charitable in Law, or whether they followed a different procedure from the CHA1 form route.

admalin:
Looking at the Charities Act of 2009, A CHARITABLE PURPOSE is defined as follows:-

A purpose is charitable if  it is of public benefit and its aim is
(1) the prevention or relief of poverty or economic hardship
(2) the advancement of education
(3) the advancement of religion
(4) any other purpose that is of benefit to the community.

Wood turning clubs don't significantly meet any of these.

VAT is a more onerous tax, but charities do not automatically get relief.

Tony Malin

Tony Malin

Andy Coates:
This is a very difficult area, and one in which I know about as much as I do about nuclear fussion. However, there is a man on the committee that might be able to help but he's out of the country until late January. He'll see this when he gets back and may jump in.

kasandrich:
Education & public benefit look like the answers, the purpose of your club should be to promote and support improvement in members turning skills at all levels, in a pleasant social environment. If you also make efforts to involve schools children etc, at our committee meeting last night we discussed events including local schools and the Scouts. Your club can also hold open days and shows and participate in other local shows such as a stand at your local country fair or craft fair.

This would fullfil the education side as well as public benefit........but maybe your club does not do any of that stuff?


Its interesting though, as a committee member on my local AWGB club I am not sure if we utilise  gift aid, and it would be interesting to hear from other clubs that do and the justification and process they went through.

admalin:
As a converse to the concept of clubs benefiting from gift aid, there is a way to pass on the 20% tax benefit from a club to a charity, but I plead the fifth amendment, so anyone interested will have to work it out for themselves.

Tony Malin

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