Can she raise money for herself?

[me-again]

I'm hoping someone out there can answer this for me!!

Are you allowed legally to make up and sell a quiz with all the money (apart from prize money) going to yourself!!??? Also, hold a tombola stall etc and again keep the money yourself??

A friend of mine is rather concerned as she does 'charity quizzes' and obviously ALL the money goes to that charity but a girl who has decided she wants to go on one of these 'outback' trips and needs approx �5000 to do it is now running a quiz and various events all for herself!! Surely this isn't legal is it??? If that's the case then we could all do it!!!
Perhaps some of you could spread some light on this for me!!

[Whickerman]

I'd imagine it's all perfectly legal.

Assuming she's declared it and is paying income tax etc...?

[pink-kittens]

Is she saying it is for charity? Is she telling people what and who it is for?

[me-again]

She does tell you what it is for but with regards to declaring it and paying income tax she is still studying so not in full time employment!!

[Whickerman]

that doesn't matter - if she's in receipt of income it needs to be declared, even if she's 'self employed'.

That said, she's open and up front about it, so to answer your question, yes, we should all do it!

[pink-kittens]

More fool anyone who gives to her then
Is she aware she must pay taxes on this money?

[me-again]

You're right, the money should be declared but I can guess the answer as to whether it is or not!! It just annoys you to think that people out there are raising money to help others and you get one who creams off that and benefits themselves!! Thanks Whickerman and pink-kittens for your opinions. It's nice to know what others think of it.

[Buenchico]

As long as there's no intent to deceive (e.g. by saying that it's for charity), anyone is free to organize any form of competition they like and keep the profits. The only proviso is that the competition must be a test of skill (e.g. a quiz) rather than solely or mainly a game of chance (e.g. a raffle or a game of poker).

Television companies make vast amounts of money from 'quizzes' where they ask incredibly simple questions to get lots of people to phone in (at premium rates). They have no special rights within the law; anyone is free to organise similar 'competitions' and keep the profits. However, the TV companies have to use a 'question and answer' format; if they simply said "just phone in and we'll select a winner at random" (with no question asked), they'd be committing a criminal offence by promoting an illegal lottery.

You also state that the girl is running 'various events'. Where I live, there are loads of tea dances, discos and other activities arranged in the local village halls and community centres. Some of them are run by, or in aid of, charities but the vast majority are small-scale commercial enterprises run by local people for their own profit. The halls and community centres benefit from the hire fees and the participants benefit by having entertainment provided locally. e.g. a friend of mine, who's in her mid-70s, supplements her pension by running tea dances at several locations. It's known as 'entrepreneurial spirit' and both my friend the young lady you refer to should be commended for their efforts.

Chris

[Skyline D]

It needs in theory to be declared and is taxable but it's doubtful she'd actually pay any tax on it depending on whether or not she has any other source of income. If she's in full time education and doesn't earn anything much elsewhere then she's entitled to 'earn' the �5,000 without it breaching her tax allowances.

More so if it straddles two tax years. If for instance she's fund raising towards a trip next summer and raises some of the money after next 5th April then she'd have two lots of allowances to put towards income.

[Skyline D]

Oh and to add.

One of the girls in our office decided to do an Inca Trail walk in Peru a few years ago and did exactly this sort of stuff to raise the funds to go. We all supported it. I really don't see why it's a problem if she's not purporting to be giving something to charity that she's not.

[me-again]

Thanks very much Buenchico. Putting it in that context I can see what you're saying. I agree that she and your friend should be praised but you can see where my friend is coming from and just wondered if this was above board. Now I can explain other peoples views to her!!
Thanks also Skyline D. What your friend did is very much like this girl so you have knowledge of this kind of thing. It's just rather confusing when it happens where I live when everyone else does this kind of thing for charity but thanks to all who've given their views it can be seen differently!
Thanks again to you all for your help on this!! I knew you'd help put some light on the subject!

[loonytunes]

Just to update the above information, it is correct that, to be exempt from the controls under the Gambling Act, there must be some deminstrable skil or judgement used in winning any prize. If this is absent, it is a lottery which is illegal if held for private gain. So if the test of knowledge is true and proper, there is no problem in raising money for private gain in this way. However, because of plethora of "competitions" by which people are wishing to dispose of houses they cannot sell, the Gambling Commission are likely to be looking at this a little more closely in weeks to come.

[me-again]

Thankyou looneytunes. Interesting facts. Thanks for taking the time to help me out. So if I have got it right, she is allowed to do a quiz or anything which requires skill but a raffle/tombola is illegal?? The above said, all providing she has declared it to the tax man!!

[loonytunes]

Correct

[Oneeyedvic]

Although she needs to notify that she is self employed, if she is only looking at getting �5000 then there would be no tax to pay (as her personal allowance would be over this amount).

Think of what this girl id doing as setting up a second hand shop neat a charity shop - one is supporting a business, the other a charity which relies on donations and volunteer staff.