Charitable donation of services

[match]

I work for a CIC which is considering options for making charitable donations in line with our CIC aims and objectives, with a view to treating these as business expenses for tax purposes. We provide specialist services rather than making and selling anything, and there is a charity who are keen to use our services, but are unable to afford to do so at this stage.

Looking through the Government advice I can see donations of money, or of stock/equipment explained, but no mention of donating services. Is this possible, or is it only equipment/stock that counts?

Alternatively, are there likely to be any issues if we donated money to a charity and they then opted to spend it on our services? (We would obviously make it clear that the donation was 'without consideration' and they could do whatever they wanted with it, but would that be enough?)

 

[Scalloway]

A charity can recognise the value of donated services but there is no equivalent tax deduction for the donor.

 

[match]

Thanks -it did look that way but I couldn't find an explicit 'no' anywhere.

What about the option of either donating, expecting it to be spent back with us, or taking payment, then refunding it as a donation? Would it be acceptable to explicitly arrange this? Or would you have to do it without prior agreement and just hope that the money would be spent/refunded. It 'feels' a bit dodgy, but that doesn't necessarily mean anything!

 

[Bobbo]

Thanks -it did look that way but I couldn't find an explicit 'no' anywhere.

What about the option of either donating, expecting it to be spent back with us, or taking payment, then refunding it as a donation? Would it be acceptable to explicitly arrange this? Or would you have to do it without prior agreement and just hope that the money would be spent/refunded. It 'feels' a bit dodgy, but that doesn't necessarily mean anything!

Receiving a donation on the condition it is spent on services from the donor is something no charity should agree to.

You can't "take payment and then refund as a donation". You can charge for the services and then refund them - in which case why charge at all? Or you can charge for the services and then separately make a donation which happens to be for the same amount. Or you can make a donation and hope they spend it on services from you.