The financial benefits of the Club becoming a charity
Roger Newton 93 Dunkeld Road. Dagenham. Essex, RM8 2PT
Email: rogerl913@holmail.com
The Essex Field Club has been a registered charity since 28 April 2006. The financial
advantages of this have been immediate; the Club no longer has to pay tax on
interest earned from funds held in its various bank accounts.
But of more interest to members are the benefits resulting from Gift Aid payments. But
who can make Gift Aid donations/payments? Principally by those individuals who are
resident in the UK. Donors must donate their own money. The donations can be made
by cash, cheque, direct debit, credit card, debit card, postal order or standing order. In
addition donors have to be paying an amount of income tax equal to the tax deducted
from their donations. Tax deducted from bank and building society interest, can also be
used to cover the tax reclaimed by the Club.
Before the Club can reclaim tax on a donation from a member, the Club must have
received a Gift Aid declaration from the donor containing certain information and
confirming that the donation is to be treated as a Gift Aid donation. Without this
declaration, the Club will not be able to claim back any tax from the Inland Revenue.
A Gift Aid declaration must:
=> Contain the donor's name and address
=> Naming Essex Field Club as the charity
=> Identifying the gift to which the declaration relates, and
=> Confirm that the gift is to be treated as Gift Aid donation
It is not normally necessary for a declaration to be signed and dated. So a declaration
can be even be made by telephone, on the internet or in person.
I have been asked "Can the annual Club subscription be Gift Aided". In short the answer
is no! Why? This is because there are in place, donor benefit rules. The principal rule is
outlined in the table below and is for any one tax year.
Amount of Donation Value of Benefits
£0-100 25% of the donation
£101-1,000 £25
£1001+ 2.5% of the donation
So in terms of our subscriptions each Club member receives 3 newsletters per year
valued at £2 each i.e. £6. In addition each member receives an Essex Naturalist valued
at £10. In total £16 of benefits are received by members whose value is clearly more
than 25% of the £15 subscription.
However all is not lost. The Club application form is being amended to include a section
Essex Field Club Newsletter No. 52, January 2007
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