Online Donations Legal Question

Jamie2k9

Quick question can an organisation/grass routes movement type legally accept “support” in form of donations without been registered as a charity. Donations are through Paypal and what I want to know if its legal and do they have to publish financial information annually?

They are a worthy cause but so little information and accountability.

Thirdfox

I don't work in the charitable legal field but I think the main benefit you get from registering an organisation officially as a charity would be tax exemptions and access to government grants etc. - rather than in the donation sphere. So as long as private companies don't claim such grants/tax exemptions, the taking of donations from the public should be fine (unless someone with more knowledge of this field knows of a specific law that prevents this?)

So for example if ABC local football club has a whip around and shake a few buckets I think it's perfectly legal to take donations from the public - without obligations to register as a charity or apply their stringent rules. People who donate would need to be aware that they are donating to a potentially private limited company rather than a charity and funds could be misused (as they could be in a charity).

3DataModem

People can ask for donations and support for any reason. It's the whole twitch.tv business model. You watch something, you donate to the person. The person getting the donation does whatever they want with it. In most cases a donation to anyone in and of itself entitles you to nothing except perhaps a receipt.

However if the entity is a protected type of entity (e.g. a registered GAA club, with rules and a constitution and board) then there may be more obligations they have to meet.