Hi,
To follow on from Paul's question in the webinar earlier today, my primary concern with contributions living on the household account and the declarations on the individual is that in order to gift aid contributions we need to prove whose account the money came from and the name on the account must match the name on the declaration. So, in a situation where a contribution that came from name 2's bank account is on the household account and we only have a declaration from name 1, we would not be able to gift aid that contribution. If there is scope to add an A1/A2 flag to each contribution, this may solve this problem.
Also, we take gift aid declarations online and it is my understanding that we can prescribe where transactions created on the web live (transact_as_household_web in t_defaults). If we were to set this to 'yes' so that the order saves on the household level, would we still be able to save the declarations to the individual constituent ID?
Thanks,Rathi
Hi
To follow on from Rathi's point about adding a A1/A2 flag to the contribution, this would defintely help solve several scenarios that affect joint accounts with Gift Aid and something that has previously been discussed on a number of occasions by various UK venues.
The 2 points below from HMRC are such scenarios.
3.41.1 If a charity receives a donation drawn on a joint bank account, and it has not been given a Gift Aid declaration by both account holders, it will need to determine whether the donation is from the donor who has given a Gift Aid declaration. The charity may, however, assume that the donation is from the person who has made the Gift Aid declaration, even if it is authorised by the other account holder, unless it holds evidence to suggest that the donation is from that other account holder.
Joint declarations It is possible for spouses, civil partners and other persons living together to make a ‘joint’ declaration on the same form (in effect, there are two Gift Aid declarations). The ‘joint’ declaration must include the full name and address of each person. Both parties will need to make clear to the charity involved how much of any donation relates to each of them. They will also need this information for their own tax affairs. The charity will need to list each person separately on the schedule to the claim form R68(i) and show the donation received from each. With reference to the above point of listing each person separately, currently there is no provision for this, but again could this potentially be covered in version 11? Thanks Ros
Joint declarations
It is possible for spouses, civil partners and other persons living together to make a ‘joint’ declaration on the same form (in effect, there are two Gift Aid declarations). The ‘joint’ declaration must include the full name and address of each person. Both parties will need to make clear to the charity involved how much of any donation relates to each of them. They will also need this information for their own tax affairs. The charity will need to list each person separately on the schedule to the claim form R68(i) and show the donation received from each.
With reference to the above point of listing each person separately, currently there is no provision for this, but again could this potentially be covered in version 11?
Thanks
Ros
There is no A1/A2 flag on contributions in v11, but as indicated in the previous response we are considering this in a future release. As it stands for households, the Gift Aid process merely determines that a valid declaration exists on an individual within the household (based on primary affiliations) in determining eligibility for a valid claimable contribution/payment. This is how eligibility worked in v10, when name1, name2 and the household were a single constituent. One change in v11 is that declarations may only be attributed to an individual constituent, and not on a household record. A “duplicate” declaration may be entered on the partner/spouse’s constituent record. Note that a warning will indicate overlapping declaration periods, but this may be overridden. All Gift Aid payments will only be attributed to a single declaration.
Hope this clears up any confusion.
+Ryan Creps
+Tessitura Network
Hi Ryan
I've had a quick look but can't see any updates on this. Do you know what changes have been made regarding putting the relationship/household model into transactions and how this might correlate with Gift Aid?
Ros,
We are just in the process of working on Gift Aid for v12 right now. We are currently making some updates to send to UK members soon for the HMRC reporting changes that are taking affect at the end of the month.
For v12, we are adding a second constituent to contribution entry called an initiator. The initiator will be the constituent that is used to report on Gift Aid eligibility. For example, if a wife is paying for a contribution on behalf of the household, you would put the household in as the owner (what is now customer number) and you would put the wife in the initiator field and she would be evaluated to see if she has a current declaration if this gift qualifies for Gift Aid. That way we can retain the ability to put the membership on a household record and we are adding the ability to tie the gift to the individual that is paying as well.
As I mentioned we are still in development with this so I don't have all the specifics but we will update What's New in v12 when the functionality is complete.
Best,
Anna
Hi Anna,
This is great news - the manual workaround for this issue is pretty time consuming for our venue. I'd also love to be kept in the loop and look forward to receiving the new HMRC reporting update.
Ros - it would be great to have a discussion about how you are currently working round this issue; we might be able to share some advice!
Dominique Trotter
Development Administration Manager
National Theatre
Upper Ground, South Bank,
London SE1 9PX
E: dtrotter@nationaltheatre.org.uk
Hi Anna
Yes I agree with Dominique, this sounds promising as the current workaround is a great deal of work. It will be good to see how it will work in practice. Please let me know if you require any testing to be done.