I was listening to the Radio 4 Money Programme from about a month ago on a podcast in my car this morning and they happened to have a segment with a lady that has organised a charity swim for mental health charities for years but foolishly (just because of the way things have come about over the years) the entry fees that people pay go through her bank account on the way to the mental health charity. I think she does recognise that this is foolish but has just been taken unawares as the event has become so popular. She will set up proper banking for the charity event but she says it takes time to do it right. It wasn't completely straightforward because she said she does take a small payment in return for her time arranging everything.
Anyway it was on the Money Programme because DWP and HMRC have now taken an unhealthy interest in her bank account and I think she said they've basically stopped her benefits / tax credits as they are now taking the position that it's all her income, doesn't matter that it ends up with the charity, she's having to do all sorts of appeals and investigations to show it's for the charity. They said it was extra complex because HMRC looks at things on a year by year basis but DWP looks at your income month by month.
Anyway this tale reminded me of St Carly and her mates the other day trying to argue on facebook that as she wasn't a CIC at the time the GFM went viral, then technically the money was donated to her personally, and this meant it was perfectly OK if she just decided to keep it! OK but they want to be careful with that track because what was said on the Money Programme means that if she does count the donated money as hers then she is definitely in for a hell of a lot of DWP and HMRC pain, they're not just going to take "but it was for charity" and go away. If she's been having any means tested benefits during the last year it could easily land her in court for benefits fraud.