They note: “Charity donated £55,000 while its investors claimed £46m in gift aid -For a charity attracting more donations than the British Heart Foundation, The Cup Trust’s website is a paltry affair. A single 100-word webpage baldly states that it was set up to provide grants to “benefit children and young adults”. A gmail address and a phone number connecting to a company that provides cheap loans for cars are the only points of contact.”
They also note:
“Those who opposed George Osborne’s planned cap on tax relief for charitable giving in his March budget can now see what he was on about. The Times today discloses that one of Britain’s largest charities is a front for massive tax avoidance. Wealthy individuals have donated large sums to the Cup Trust to get Gift Aid tax relief and then have received the vast majority of their money back.”
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Mark Blumberg is a partner at the law firm of Blumberg Segal LLP in Toronto and works almost exclusively in the areas of non-profit and charity law.