So you’re organising a fundraising event that you hope will raise £75,000 for charity. You’re selling tickets for the event and anticipate income of about £400,000. Do you:
(a) charge VAT on tickets which you’ll just hand over to the Vatman?
(b) charge VAT on tickets but it’s ok because you can claim this back from the Vatman when you do your quarterly VAT return?
(c) don’t charge VAT because you’re a charity and its a fundraising event?
(d) take proper legal and financial advice from independent experts right at the start?
(e) structure it so that people attending can make a donation with the potential to add a further 25% Gift Aid instead of buying a ticket?
The answer, of course, is c, d and e as this would generate (approximately) a further £120,000 for your charity. Now if I was a charity trustee and I’d gone with a or b, I’d be getting worried that I could find myself personally surcharged to make up any financial losses incurred by the charity because of my somewhat lackadaisical approach to its affiars.
So…anyone know any charities out there which might need some advice?
alzipratu 