HMRC officials have provided the following update to CTG in respect of Gift Aid on donations freely given to charities and CASCs while membership subscriptions have been suspended.

“We are aware that many Community Amateur Sports Clubs (CASCs) and charities have suspended the collection of membership subscriptions in light of the Covid-19 pandemic but some individuals are making voluntary donations instead in order to support their club.

“It is probably worthwhile reminding you that that there is no barrier to Gift Aid being claimed on such donations, provided they are freely given, no benefits arise in consequence of that specific donation (either now or in the future) or, if provided, they fall within the legislative limits, and a Gift Aid Declaration is obtained.

“In circumstances where clubs have reduced their subscription rate, any amounts freely donated over and above this reduced amount would also potentially be eligible for Gift Aid. In all cases it must made clear to the members that the amounts voluntarily given by them are not subscriptions, carry no subscription rights and will be treated as donations on which the CASC or charity will claim Gift Aid.

“The personal tax implications of making a Gift Aid donation will also need to be explained to donors.”