AIME Guidance on Competitions with Charity Donations

A number of AIME Charity Members wish to add an incentive to a call for donations by offering a competition element along with the donation. Often, the prize has been donated to the charity.

This however will impact the rules regarding providing the donor with something of value in exchange for the donation and make the donation liable for VAT. It could also, dependant on the mechanism, impact the rule related to donations being freely given.

This AIME Guidance details how to run competitions or raffles with a donation in a manner that avoids these issues and ensures that the donation remains outside of the scope of VAT.

We are grateful to HMRC for checking our guidance for accuracy.