The end of Gift Aid

[PH]

I'm sure all members will have received the same email informing them that Cycling UK are no longer able to claim Gift Aid on the membership Subscriptions. The reason being that the members benefits exceed those permitted by the regulations.
This was such a big selling point in the charity conversion, I'm unsure how this would have come about, did the management not value and calculate this correctly? It's being sold as a positive as in they're now freed from any constraint and can give the membership more. I'm not sure how that works, as a charity they're still limited.
I'm a bit shocked, without GA would there have been the big push towards charity status?

[thirdcrank]

All the threads from charity conversion debate are still there for anybody who wants to check them.

I searched that bit of the forum on <gift> and it threw up127 matches.

The oldest was from regulator who made no secret of his opposition to the charity conversion.

... I used to work in the charitable sector (I was Deputy Chief Executive of two national charities) and I am the only person on Council with a formal qualification in charity management (I have the Institute of Chartered Secretaries & Administrators Certificate in Charity Management). ...

That establishes his credentials.

Here's a relevant chunk from a long post:-

.... There's a lot of guff being given out about the benefits (in particular around Gift Aid). The figures are overstated and most of these benefits can be accessed without unification as a charity. And those benefits that members currently get through the Club will not be guaranteed in any unified charity - they will become purely discretionary. ....

All I would say is the charity conversion is done. And as regulator noted elsewhere in that post

.... Don't forget - once the changes have been made they can't be undone. .....

viewtopic.php?p=255107#p255107

Water under the bridge. (I voted against conversion but the majority was in favour.)

[prestavalve]

Which email was this? Seems like something that should be announced in the magazine (which I have yet to receive), but I checked the last few emails and I haven't noticed anything.

What will be the financial impact of this?

[rotavator]

Which email was this? Seems like something that should be announced in the magazine (which I have yet to receive), but I checked the last few emails and I haven't noticed anything.

What will be the financial impact of this?

This what I received:

Thank you for completing a Gift Aid declaration for Cycling UK. As a charity, this has enabled us to make your membership go further at no additional cost to you.

We are writing to inform you that we are no longer able to claim Gift Aid on membership fees. Please note this does not affect Gift Aid on donations made to the charity.

To qualify for claiming Gift Aid on membership fees, the value of membership benefits enjoyed and used by members must not breach certain limits. Each year, we are required to monitor the value of those benefits, and the take-up of offers and discounts. I would like to confirm that the limit has been reached so we will not be able to claim Gift Aid on any membership fees after March 2020.

This is a direct result of the increased value you receive through your membership with Cycling UK and we’re pleased to see so many members using their benefits. The change will now allow us to offer you more for your membership fee, including increased insurance and further retail discounts.

I can confirm for the tax year 2019 – 20 we have claimed against £43.50 of your membership fee and any donations you may have paid.

If you would normally claim higher rate tax relief on Gift Aid donations made, via your Self Assessment tax return, we would suggest that you only claim the amount referenced above for the tax year 2019-20.

We can continue to claim Gift Aid on donations, and this remains an invaluable source of additional funds to help us support cycling projects, campaigns and activity across the UK. Thanks to members like you and due to the donations received, we were able to support thousands of key workers to cycle during the pandemic, safe in the knowledge they were insured and protected.

If you do have any questions about Gift Aid or our work, please do get in contact.

Thank you for your support,

James Newman, fundraising manager

[prestavalve]

So what is 43.5 x the number of people who gift aid?

[PH]

So what is 43.5 x the number of people who gift aid?

I wouldn't be surprised if it more that wiped out any extra income from removing the seniors concessionary rate. I'm wondering if the two are in any way related.

[PH]

Water under the bridge. (I voted against conversion but the majority was in favour.)

The charity conversion may well be water under the bridge, but the change in position and how the value of member benefits is effecting GA and the income is very much current.

[Vitara]

The end of Gift Aid for CUK is a good thing in my book. I don't agree with it and have never accepted the invitation to use Gift Aid from CUK or any other organisation.

My reason is that I think the system is fundamentally flawed and abused, with contributors led to believe it is "free" money for the charity concerned, when in fact it diverts some of Tax you pay to the charity and away from our Public Services.

https://www.ft.com/content/1093fcec-187 ... 6390addb44

[reohn2]

The end of Gift Aid for CUK is a good thing in my book. I don't agree with it and have never accepted the invitation to use Gift Aid from CUK or any other organisation.

My reason is that I think the system is fundamentally flawed and abused, with contributors led to believe it is "free" money for the charity concerned, when in fact it diverts some of Tax you pay to the charity and away from our Public Services.

https://www.ft.com/content/1093fcec-187 ... 6390addb44

+1

[thirdcrank]

... The charity conversion may well be water under the bridge, but the change in position and how the value of member benefits is effecting GA and the income is very much current.

You are right. I was under the mistaken impression that Gift Aid on subscriptions had never been sorted out, hence my digging out the stuff from regulator.

[drossall]

Interesting. I've worked all my life for membership charities, although not departments connected with membership itself, Gift Aid, etc - i.e. I am not a specialist.

There's nothing wrong with the principle of membership and Gift Aid - membership can be a means of delivering the aims of the charity. The National Trust is an obvious example of Gift Aided membership. So I'm wondering whether this is a broad ruling, or relates specifically to something about Cycling UK.

[Jdsk]

So I'm wondering whether this is a broad ruling, or relates specifically to something about Cycling UK.

TTBOMK it's the Chapter 3.18 limits:
https://www.gov.uk/government/publications/charities-detailed-guidance-notes/chapter-3-gift-aid#chapter-318-benefits-received-by-donors-and-connected-persons

Jonathan

[PH]

So I'm wondering whether this is a broad ruling, or relates specifically to something about Cycling UK.

TTBOMK it's the Chapter 3.18 limits:
https://www.gov.uk/government/publications/charities-detailed-guidance-notes/chapter-3-gift-aid#chapter-318-benefits-received-by-donors-and-connected-persons

Jonathan

Thanks for that, I had a vague idea it was 25% but hadn't looked it up.
So that's a benefit limit of less than £11, it doesn't take much to go over that, six magazines and the insurance probably does it, if anything I'm surprised it was ever valued at less. I wonder if the allocation to Member Groups is counted as a benefit, they provide activities which are mostly only open to members. Then there's the discounts, I probably saved a tenner at Halfords.
I find it all a bit odd.

[Jdsk]

We recently converted a membership association into a Charitable Incorporated Organisation. It was... interesting.

Jonathan

[drossall]

TTBOMK it's the Chapter 3.18 limits...Jonathan

Yes, I was aware of those in principle, though never someone who had to make decisions about complying.