Converting ticket refunds for cancelled events into Gift Aid donations

HMRC has issued guidance to help charities process ticket refunds, collect donations and reclaim Gift Aid for cancelled charity events. If a charity event is cancelled due to COVID-19, HMRC will accept that, where a person due a refund decides to donate this to a charity, the Gift Aid requirements are met provided the individual donor:

 

·         Does not receive a benefit as a result of their donation.

·         Agrees that the cost of their ticket becomes a donation.

·         Completes a Gift Aid declaration.

 

The charity must also keep an audit trail, including a copy of the agreement from the donor designating the ticket cost as a donation. This will avoid the need to physically refund the ticket price for the individual to re-donate. This facility is not available for postponed events.