[GNC] Managing UK Gift-Aid

Michael or Penny Novack stepbystepfarm at comcast.net
Sat Oct 31 19:53:49 EDT 2020


> I'm not aware of any church that has a membership fee, and I'd be 
> amazed to learn of one. In the case of tithing (which is expected in 
> only a very small minority of churches) I imagine it would be cast as 
> a donation, and not as membership.
>
> Our common law holds a membership fee to be contractual: it's 
> consideration given in return for some benefit, and this is why it 
> can't be a donation (and so is ineligible for Gift Aid). I wonder if 
> possibly the exception you mention arises on a similar basis: if the 
> benefits received are purely spiritual, possibly the law doesn't 
> regard that as consideration for the fee, so there is no contract at 
> common law, and so the "fee" is, after all, a donation.
>
> Edward

I guess I need to give an example?

Normal/traditional/etc. for Jewish congregations, be they synagogues or 
temples to have membership "dues". Now these are often sliding scale and 
provision for abatements, etc. for those unable to afford the full 
amount (or any). Likewise assessments for building fund, etc.

That is why HERE the IRS has that exception "dues/memberships not 
deductible except if the only benefit is intangible/spiritual".

It is also possible one of the divergences in our "common law" doctrines 
(there are many). For example, membership in a congregation or 
organization might convey the right to vote. Over here that is 
considered an "intangible" benefit, not disqualifying membership dues 
from being considered a donation. But still recognizing "members" in a 
legal sense. Generally "de minimis" tangible benefits also do not 
disqualify. I could give some (non-religious) examples.

Michael D Novack



-- 
There is no possibility of social justice on a dead planet except the equality of the grave.



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