Fund Raising - Personal not charity

verania

Hi everyone,

Sorry if this isn't in the right area, I'm hoping for some advice. My friend is in need of a stem cell transplant or she will likely die. Sadly the UK are not offering this trial because it's a very rare one in a million condition.

This means that my friend needs to raise a lot of money to fly abroad where they are using stem cell transplants to treat the condition. As it's for personal means I believe setting up a charity for fund raising the money is not possible.

What i am wondering is where you would stand with regards to tax for this? There is a lot pf information about funds raised for charity and tax but I can't find much on money that is donated to you.

Do you need to pay tax on personal donations?

Savvy_Sue

there is no tax on gifts given to you in the UK.

However, I'd suggest that your friend needs to keep a record of what is given, and how, and if possible by whom, because at some point she may need to establish that the money came to her legitimately, ie not because she is money laundering, dealing in drugs, or living off immoral earnings.

If at any time she is receiving means tested benefits, then any money she's been given towards this will count as part of her assets, and may affect what she can claim.

You are right that you can't set up a charity to benefit just an individual.

Dolce_Vita_Girl

Hi, I'm not a tax expert of any sort, but I do know someone in a similar situation who needs to raise funds for cancer treatment abroad. It seems that Yestolife.org.UK can help provide this official charitable status for donations to be raised for specific individuals and this can be done through justgiving.com. Certainly worth getting in touch with them. Hope this helps.

Aquamania

Savvy_Sue wrote: »

there is no tax on gifts given to you in the UK. ...

Whilst it is true that there is no additional tax to pay on gifts, I think what the OP was thinking of was Gift Aid which allows charities to reclaim the tax (at the basic rate) that has already been paid on donations. Therefore for every £1 donated, the charity can get another 25p from HMRC (assuming the payer pays at least basic rate tax) making the donation worth £1.25

Furthermore, if the donor pays a higher rate of tax, then that donor can claim some tax relief too.

Savvy_Sue

Aquamania wrote: »

Whilst it is true that there is no additional tax to pay on gifts, I think what the OP was thinking of was Gift Aid which allows charities to reclaim the tax (at the basic rate) that has already been paid on donations. Therefore for every £1 donated, the charity can get another 25p from HMRC (assuming the payer pays at least basic rate tax) making the donation worth £1.25

Furthermore, if the donor pays a higher rate of tax, then that donor can claim some tax relief too.

I think the OP was thinking about both situations ...

Savvy_Sue

Dolce_Vita_Girl wrote: »

Hi, I'm not a tax expert of any sort, but I do know someone in a similar situation who needs to raise funds for cancer treatment abroad. It seems that Yestolife.org.UK can help provide this official charitable status for donations to be raised for specific individuals and this can be done through justgiving.com. Certainly worth getting in touch with them. Hope this helps.

And from another thread:

Octobergirl wrote: »

Have a look at Tree of Hope. It's a national charity which is a vehicle for fundraising for an individual. You get your own page and justgiving link. Money you fundraise is sent to tree of hope but is ring fenced for your child. You can then invoice them for equipment / therapy etc. on the downside you don't get interest on monies saved, but you can claim gift aid. People seem much happier to donate via a legit national charity.