Citizens Advice Bureau

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LOCAL INFORMATION

12.2.1.L8
Charities and Lump Sum Donations

Extent: Jersey
Updated 4 August, 2016
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Words you may need to know

 

Additional - extra

Benefit – gain an advantage, be better off

Charity – an organisation that exists to help people and receives donations to pay for its costs

Donation – a gift or offering

Exempt – rules do not apply

Gross – ie a sum of money before tax is taken off

Lump sum – a sum of money given once ie not regularly

Payroll – the list of people who get paid by an employer

Sponsorship – here, giving money to someone who is doing something to raise money for charity  eg a sponsored cycle ride

 

The Lump Sum Donation Scheme

 

If you give money to a charity using the Lump Sum Donation scheme the charity can benefit from special tax rules and get an additional amount of money from the Taxes Office. The amount of money the charity gets is an additional 25% of the lump sum given.

 
For example:

·        you give £800 to a local charity

·        this is treated as a gross payment of £1,000 less £200 tax (at 20p in the £)

·        the charity, being exempt from income tax, can claim the tax of £200 so your
         donation of £800 is worth £1,000 to the charity

However, there are a number of rules that apply to the way the donation is made before this benefit can be given.

For details see: www.gov.je/TaxesMoney/IncomeTax/Charities/Pages/MakingDonation.aspx

The website also gives information about the effect of the Lump Sum Donation Scheme rules if you are :

-          Giving lump sum donations through payroll – information is provided for
            employees and employers

-                  paying money to charity when you don’t pay income tax

 

-                  holding events to raise money, collections and sponsorships

-                  a trust, estate or partnership (these are different legal structures or organisations or bodies)

 

 

For more information contact

 

Customer and Local Services, Phillip Le Feuvre House, La Motte Street, St Helier, Jersey, JE4 8PE

 

 

    T   01534 440300

    F   01534 724315

    E   This email address is being protected from spambots. You need JavaScript enabled to view it.

 

Open:   Monday to Friday 9am - 5pm