The provision which allows museums and heritage attractions which are registered charities to claim gift aid on admission to their sites has been extremely valuable for those using this benefit, for many years now. However it is very important to ensure you are operating your gift aid admissions in accordance with HRMC’s requirements, as one of AIM’s members recently discovered.
The requirements are clearly explained, with examples, on HRMC’s website and it is safest to use this as your primary source of information.
The HRMC website introduces the Gift Aid on Admissions section as follows,
If your charity allows a donor the right of admission to view charity property then, providing certain conditions are met, the benefit of the right of admission can be ignored and the donation may qualify for Gift Aid.
Your charity could ask visitors to make a voluntary donation that meets either of the following conditions:
- it is at least 10 per cent more than the normal admission fee
- it allows admission for at least a 12 month period
The website goes on to explain in reasonably simple language how each of these option should work and provides examples.
One member contacted us recently because they had misunderstood the need for those using the ‘annual ticket’ option to give an annual ticket to all visitors, not just those who completed gift aid declarations. This was picked up by HRMC and the museum has had to pay back £3,000.
Although care needs to be take, there are hundreds of museums and attractions across the country successfully claiming Gift Aid on admissions. They have found it to be well worth the investment in setting up the necessary systems and getting their offer right, because of the increase in core income through the gift aid reclaimed, worth 25p for every £1.