Proceeds from Fundraiser

by CG on Fri Dec 30, 2011 5:58 pm

We are holding a fundraiser for a friend to help her fund various treatments for cancer and hopefully also send her and her young family on a holiday.

Are there are any tax implications for the money raised that will be given to her?

Also, will it affect her Tax Credits if she is given the money in a lump sum?

Many thanks for any advice.

by **mullet** on Fri Dec 30, 2011 8:59 pm

Are there are any tax implications for the money raised that will be given to her?

No, it is a gift. It is not income.

Also, will it affect her Tax Credits if she is given the money in a lump sum?

Possibly, but it would depend on the amount received and how long it is held. It might be better for a trusted friend or relative to hold the money on her behalf and spend it as directed.

by CG on Fri Dec 30, 2011 9:12 pm

Thank you Mullet for your help - good idea for someone to hold the money on her behalf so as not to affect her Tax Credits.

by CG on Tue Mar 13, 2012 11:16 am

I posted this query back in December. We held the fundraiser last weekend and it raised a significant amount of money. We would like to open an account with the money (and it looks like further donations may be made into it on an ongoing basis) and we have a trusted friend of the lady the funds were raised for who we want to act as trustee over the money.

I have a few questions as follows:

1. Can a normal bank/savings account be opened in the name of the lady the money was raised for but with another person appointed as trustee on this account?

2. As the money is a gift, I understand that there is no tax implication for the lady the money is raised for, but are there any tax implications for the trusted friend if her name is on the account?

3. Is any interest earned treated as income for the lady the funds were raised for?

I would be grateful for any advice as we want to set this up the most efficient way.

Many thanks

by **section 44** on Tue Mar 13, 2012 11:39 am

What's the nature of the fundraiser(s)? E.g. people collecting donations, selling things, raffle/lottery etc?

by CG on Tue Mar 13, 2012 11:42 am

The fundraiser was an auction

by **section 44** on Tue Mar 13, 2012 12:30 pm

Are there other sorts of fundraisers, roughly what sort of value and how frequently do they occur?

With regards to the auction, were goods/services purchased for auction or were used goods auctioned? If used goods were auctioned, were the goods given to the person that you are raising money for so that she can auction them or were the goods auctioned such that the proceeds could then be given to her?

by CG on Tue Mar 13, 2012 12:47 pm

This was a one-off fundraiser which raised over £5,000.

The auction was held on the night - all items auctioned were either goods donated to the cause, promises from people (eg a cake a month for a year) or meals donated from local restaurants.

Basically at the end of the event, the proceeds from the auction and some straight cash donations are the funds that have been raised for her.

Why is the way the auction was carried out significant?