Beacon

Collecting Gift Aid on sponsorships

Updated a year ago

HMRC allows you to claim Gift Aid on donations provided as sponsorships of a participant in a particular event - for example, someone running the London Marathon.

It would be very labour intensive to ask fundraisers to collect full address information and declarations for every sponsor, so HMRC (helpfully) allows you submit sponsorship donations a little differently.

HMRC requires:

  • A sponsorship declaration from the fundraiser
  • Assurance that no single donation is more than £500 (if higher, these donors must have their own declaration)

Adding sponsorship payments in Beacon

1) Create a new payment, and check the sponsorship box

Screen Shot 2018-06-13 at 08.04.06

2) Specify the amount as the total amount raised by the participant

Screen Shot 2018-06-13 at 08.04.26

3) Set the payment date as the date of the last donation, and specify the other required fields.

4) Make sure that Gift Aid allowed is checked.

Screen Shot 2018-06-13 at 08.04.48

Note: usually not all sponsors will UK taxpayers, so not all payments written on a sponsor form are eligible for Gift Aid. In this case, you should create separate sponsorship payments in Beacon:

  1. One totalling all Gift Aid-able donations (with Gift Aid allowed checked)
  2. One for non-Gift Aid-able donations (with Gift Aid allowed unchecked)

Gift Aid eligibility

In Beacon, the eligibility criteria changes when a payment is marked as a sponsorship:

Screen Shot 2018-06-12 at 18.58.50

For more information on sponsorship eligibility, see this article.

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