Gift Aid on fundraising events, tickets and sponsorship
When a UK charity can and cannot claim Gift Aid on event tickets, admission, auctions and sponsored challenges, including the donor benefit limits and the rules for connected sponsors.
The short answer
Gift Aid only applies to voluntary donations. Money paid to attend an event, or to buy something, is not a donation, so it doesn't qualify. Sponsorship for a challenge usually does qualify, with extra rules when the sponsor is related to the participant or the charity pays for the trip. Whenever a donor gets something back, HMRC's benefit limits decide whether you can still claim.
Tickets and paying to attend
- Tickets for an event you organise, such as a concert or fundraising dinner, do not qualify. They are payments to attend, not donations.
- A “minimum donation” that someone must pay to take part does not qualify. Anything they choose to pay above the minimum does.
- A separate, voluntary donation made at the event can qualify, with a Gift Aid declaration, like any other donation.
Admission to your charity's property
Entry fees to visit and view your charity's property are not gifts. A payment can qualify if it is at least 10% more than the normal admission fee, or if it gives admission for at least 12 months.
When the donor gets something back
You can still claim Gift Aid when a donor receives a benefit, as long as its value stays within HMRC's limits:
| Donation | Most the benefit can be worth |
|---|---|
| Up to £100 | 25% of the donation |
| £101 or more | £25, plus 5% of the amount above £100, up to £2,500 in total |
For example, a donor who gives £40 and receives a gift worth £10 is within the limit (25% of £40 is £10). A gift worth £15 would be over it, and you couldn't claim Gift Aid on that donation.
Auctions
When the retail value of an item bought at a charity auction is above the benefit limits, you can't claim Gift Aid on the winning bid.
Sponsored challenges
- All sponsorship qualifies for Gift Aid if the participants pay their own flights and accommodation.
- Sponsorship from someone connected to the participant only qualifies if the participant pays the full cost of the trip. Connected people include a spouse or civil partner, a brother, sister, parent or grandchild, the spouse or civil partner of a relative, and a company the donor controls.
- Sponsorship forms can carry a Gift Aid declaration. They also need to record each amount, the date the pledged money was collected, and the date it was handed to your charity. HMRC publishes a sponsorship form template, linked under Sources.
Other payments that don't qualify
- a membership subscription paid on someone else's behalf, which counts as a gift to that person, not the charity
- money collected for another charity, for example at a church collection, which is not your own income
- payments for goods or services. See donations you can't claim Gift Aid on for the full list.
Common questions
Can we claim Gift Aid on tickets for a fundraising dinner or concert?
No. Paying for a ticket to an event your charity organises is a payment to attend, not a donation. If someone gives an extra voluntary donation on top, that extra amount can qualify.
Can family members sponsor a participant with Gift Aid?
Only if the participant pays the full cost of the trip themselves. Donations from connected people, such as a spouse, civil partner, sibling, parent or grandchild, otherwise do not qualify.
Can we claim Gift Aid on money raised at a charity auction?
Not when the retail value of the item bought is above HMRC’s donor benefit limits. The winning bid buys the item, so it is not a straightforward gift.
What is a “minimum donation”, and does it qualify?
A set amount someone must pay to attend or take part. Minimum donations do not qualify for Gift Aid, but anything a person chooses to pay above the minimum does.
Sources
- GOV.UK: Gift Aid, what donations charities and CASCs can claim on
- GOV.UK: Gift Aid declarations, claiming tax back on donations
- GOV.UK: Sponsorship and Gift Aid declaration form (HMRC template)
This guide is general information for UK charities, not tax advice. HMRC's guidance can change, so check the sources above before relying on it for a claim.