The example cited by Matthew would be unlawful, in my opinion - and in the opinion of m'learned friends too, I think. A chess club would be registered as a CASC (Community Amateur Sports Club), able to pay a club professional
only for coaching and similar general activities, but not specifically for playing. That of course provides the loop hole. But HMRC (revenues & customs mob) would likely take a dim view of attempts to use Gift Aid to pay players.
Club subs are absolutely banned in law from being treated as Gift Aid. Indeed, HMRC could intervene where a club abolished its subs and invited players to Gift Aid instead. But there's plenty of room for 'enterprise' here. My club's subs are £30/£10 (waged/unwaged). Say we charged everyone £10 subs but invited Gift Aid from the waged. Then do the sums:
2007-08
£30 x 30 (= £900) + £10 x 20 = £1100 annual fee income
2008-09
£10 x 50 (= £500) + £600 Gift Aid (30 x £20) @ 28p/£1 = £1268 annual income
That's c. 15% growth; or the equivalent of 4/5 DGT clocks
Or we raise Gift Aid of £100 x 30 (= £3000 + £840), but award 30 prizes of £80 in carefully structured club tournaments
In fact, the more I think, the more I realise we could do things better. My colleague and I, at our own expense last year, renewed our club's entire equipment (16 new DGT clocks, 30 new sets & boards). Had we waited a year, then donated cash under Gift Aid instead, our club would be 28% better off
David
Atticus CC