Money for PTFA and PTA committees

Do you need to register?

Many parents' associations are charities. In England and Wales, a charity with an income of over £5,000 a year must register with the Charity Commission. A charity with an income of £5,000 or less does not have to register, unless it is a charitable incorporated organisation (CIO), which always registers. A smaller charity can still ask HMRC to recognise it as a charity, so that it can claim Gift Aid.

School Money lists the registered charities it has matched to each school, with their income from the Charity Commission register. When it cannot find one, the school's page says No registered parents' association found. That does not mean the school has no parents' group: charities with an income of £5,000 or less need not register, and some associations raise money under a different name.

Gift Aid

• Gift Aid lets a charity claim an extra 25p for every £1 donated by a UK taxpayer. It costs the donor nothing extra.
• The donor must make a Gift Aid declaration, and your association must be recognised by HMRC as a charity and have an HMRC charity reference number.
• A donation qualifies as long as it is not more than 4 times what the donor paid in Income Tax or Capital Gains Tax that tax year.
• Gift Aid is for gifts only. You cannot claim it on payments for goods or services: ticket sales, raffle and lottery tickets (including 100 clubs), entry to events, or things bought at a fair.
• Voluntary contributions towards school trips can sometimes qualify, but special rules apply (HMRC's detailed guidance, paragraph 3.35).

The Gift Aid small donations scheme

For cash and contactless donations of £30 or less, such as a bucket collection at the summer fair, a charity can claim 25% without a Gift Aid declaration, through the Gift Aid small donations scheme (GASDS). You can claim up to £2,000 in a tax year. You must also have claimed ordinary Gift Aid in the same tax year, and the donations you claim on through the scheme cannot be more than 10 times your Gift Aid donations.

Match funding: ideas to try

These are suggestions, not rules. Every scheme sets its own terms, so check before you count on the money.

• Ask parents and carers whether their employer runs a matched giving or volunteering grant scheme. Some employers match what staff raise or donate, or give a grant when staff volunteer.
• If an employer runs a Payroll Giving scheme, staff can give from their wages before tax, through a Payroll Giving agency. You cannot claim Gift Aid on Payroll Giving donations.
• Local businesses may sponsor an event or donate prizes. Gift Aid cannot be claimed on donations from limited companies.
• Look for grants from local charitable trusts and community funds for a specific project.

Reporting your income

Every registered charity files an annual return with the Charity Commission within 10 months of the end of its financial year. For an unincorporated association or a charitable company:

• Income under £10,000: you only need to report your income and spending.
• Income between £10,000 and £25,000: answer the questions in the annual return.
• Income over £25,000: also send your trustees' annual report and accounts, with the independent examiner's or auditor's report if your accounts need one.

For accounting years ending on or after 30 September 2026, accounts need an independent examination when income is over £40,000 (it used to be over £25,000).

These figures go on the public register. School Money shows them with their year and the source, Charity Commission register.

Spending well, with the school

• Agree priorities with the head each year, so the money goes on things the school wants and can look after.
• Ask what the school budget already covers, so you do not pay for the same thing twice.
• Agree in writing how money reaches the school: given to the school for an agreed purpose, or paid straight to a supplier.
• Plan for running costs. Equipment needs repairs, and subscriptions renew.
• Tell parents what the money paid for. It helps the next appeal.

If the school's budget is under pressure, it may ask the association to help with things the budget used to cover. That is a decision for the committee and the school together. Governors may ask whether the budget relies on fundraising to balance, and the guide for governors suggests other questions.

Plan your year

The PTA planner adds up your events, shows what Gift Aid could add and compares the result per pupil with registered parents' associations at other schools in your council.