UK Gift Aid, Day Membership and Open Days - from April 2006
Until now it has not been easy for ringers to justify re-claiming Gift Aid on admission fees to open days. The reason why was the subject of an earlier note, published in the Ringing World and on the Central Council Website in 2004, but in brief it was because those charities that were able to do this had to meet certain criteria or be specified in legislation. It was very unlikely that ringing societies or their bell restoration funds would have met those criteria. We knew that the rules were going to change and we thought that the changes would remove the limited existing ability to Gift-Aid admission fees.
But the good news is that the changes from 6 April 2006 will make it easier to Gift-Aid admission fees. From that date Gift Aid may be recovered on admission fees in two situations. HM Revenue & Customs note REV BN 27: Gift Aid And Admissions says:
"6. Currently certain heritage and conservation charities can offer free admission to donors in return for a donation to allow them to view the work of the Charity, without the admission being considered a benefit for Gift Aid purposes. From April 2006 we will broaden the scope of the exemption to apply where any type of charity grants to the public the right to pay to view property preserved, maintained, kept or created by a charity in relation to their charitable work.
7. Where the conditions in paragraph 6 are met and, instead of paying the admission charge, the visitor makes a donation, the new rules provide two alternative situations where the Gift Aid may apply.
- The first is where a right of admission given in return for the gift is valid for a period of at least one year for all times that the general public can gain admission. The number of visits within this twelve-month period should not be restricted.
- The second situation is where the right of admission is for less than one year. The gift must be at least 10% more than the amount that any member of the public would have to pay to gain the same right of admission. So a donation giving a right of admission for one day would need to be at least 10% more than a member of the public would pay for a ticket giving admission for a day. If there is not a comparable ticket the value of the right of admission will not be disregarded in determining whether the benefits received in consequence of the gift exceed those allowed by the normal Gift Aid rules.
8. Where the new rules are met by the charity, the whole of the gift will be eligible for Gift Aid."
The second situation is the one that would apply to ringing open days, as admission is for less than a year. The easiest way to comply with this is to ensure that there is the option of an admission fee at one price or a Gift Aided admission fee that must be at least 10% more. Where this is done, the whole admission fee can be Gift Aided.
But there is a requirement that the property being viewed must be preserved, maintained, kept or created by a charity. So it seems reasonable to assume that gifts to ring on many privately-owned rings of bells are unlikely to qualify.
Donations made where nothing is received in return can still be Gift Aided. So, for instance, if you were to run your open days with no admission charges, you could invite donations and invite visitors to Gift Aid their donations. On this basis you would have to be prepared to allow in free those who preferred not to make a donation.
Bell Restoration Committee, Central Council of Church Bell Ringers, March 2006
