A donation is money received as goodwill for which the donor receives no benefit as a result.
You are required to provide a letter from the donor stating clearly that the money is a donation. If no such letter is provided, the income cannot be treated as a donation and will be liable for VAT (standard rated @ 20%).
The letter should include:
- Donor's name
- Donor's address
- The following text: "We are pleased to donate the sum of £X to Imperial College Union, this is purely a donation and we do not expect anything in return."
You can raise a sales invoice or a bank record to enable for the donation to be transferred to the club's account.
Please check Sales Invoices | eActivities and Banking Records | eActivities (ic.ac.uk) article to get more information.
