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 Invoice and Banking Cash & Cheques article to get more information.

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