Membership subscriptions paid to a charity are not gifts but can be treated as such for Gift Aid purposes provided that the payment:
Membership of a Community Amateur Sports Club (CASC) gives members personal access to services and facilities supplied by the CASC and so membership subscriptions to CASCs are specifically excluded by legislation from the Gift Aid scheme.
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To be treated as a gift and qualify for Gift Aid, any subscription payments to your charity must be for membership only and not allow the personal use of facilities.
These conditions still allow members to:
Any additional benefits provided to members must be within the set benefit limits which are based on the amount of the donation. For more information on these values see link below 'Find out more about providing benefits in return for donations: rules and limits'.
Find out more about meeting the conditions of the Gift Aid scheme
Find out more about providing benefits in return for donations: rules and limits
If your charity offers family membership, HM Revenue & Customs (HMRC) will regard the membership subscription as a gift to your charity by an individual donor and it will qualify for Gift Aid, provided that the individual donor is included in the family membership and has given a Gift Aid declaration to your charity, and all the conditions of the Gift Aid scheme are satisfied.
Find out more about Gift Aid declarations
Any membership subscription that gives the member rights to personal use of your charity's services or facilities would not be treated as a gift, but as a payment for those services and so would not qualify for Gift Aid, for example using the equipment of a charitable sports centre.
Personal use includes:
Payments made by an individual for somebody else's membership is not a gift to your charity and will therefore not qualify for Gift Aid, for example, a husband paying for a separate annual membership subscription for his wife. The payment will qualify if it is made by a parent or legal guardian on behalf of a child under the age of 18, or if it is for a family membership that includes the donor.
If your charity provides a basic membership and charges separately for other activities and benefits, only the basic membership subscription will qualify for Gift Aid. The additional charges won't qualify.
A musical society charges a basic membership subscription of £180 a year, with additional rehearsal or playing charges of £10 per hour. In the first month that Jane joins the society she pays £45, of which £15 is her monthly membership subscription and £30 is for three additional playing sessions. Only £15 of the total £45 paid can qualify for Gift Aid.
If your charity provides any benefits in return for a membership subscription, this is a business activity for VAT purposes and you must take this income into account when considering whether you're liable to be registered for VAT. If you are VAT registered, VAT at the standard rate may be due on your subscriptions.
Subscriptions to certain non-profit making organisations, such as trade unions, professional and other public interest bodies, and certain non-profit making sports clubs and associations may be exempt from VAT.
There are special rules for charities and other non-profit making bodies for accounting for VAT on subscriptions.
Find out more about the VAT treatment of membership subscriptions in VAT Notice 701/1
Find out more about how VAT applies to clubs and associations in VAT Notice 701/5
For more help you can contact the Charities Helpline.
Contact the Charities Helpline
Read more about membership subscriptions in the detailed guidance notes
How to make a Gift Aid repayment claim
