Charities—fundraising events
Charities—fundraising events

The following Private Client guidance note provides comprehensive and up to date legal information covering:

  • Charities—fundraising events
  • Qualifying organisations
  • Charity trading subsidiaries
  • Fund raising events
  • Charity Commission requirements
  • Scope of the VAT exemption
  • Charity challenge and sponsored events

Qualifying organisations

The following bodies are entitled to VAT exempt eligible fund raising events:

  1. charities that meet the eligibility criteria

  2. bodies corporate - if the entity is wholly owned by a charity and its profits are payable to the charity it can claim relief

  3. qualifying bodies include:

    1. non-profit making bodies included at Schedule 9, Group 9, item 1 of the Value Added Tax Act 1994 (VATA 1994)

    2. eligible bodies under VATA 1994, Sch 9, Group 10

    3. eligible bodies under VATA 1994, Sch 9, Group 13

Typical examples of qualifying bodies include:

  1. trade union and staff association

  2. professional association

  3. associations connected with the advancement of knowledge

  4. associations that make representations to government on business and professional matters

  5. bodies with interests in the public domain, such as of a political, religious, patriotic and civic nature, etc

  6. non-profit making bodies that have been created to encourage people to take part in sporting activities

  7. non-profit making bodies that are managed and administered on a mainly voluntary basis by persons who have no financial interest in their activities

Charity trading subsidiaries

According to VCHAR9400 a charity's trading subsidiary can arrange exempt fund raising events when the following requirements have been satisfied:

  1. be wholly owned by the charity

  2. transfer all profits, from whatever source, to the charity

Normally if the trading subsidiary can retain its profit,s