The Government has confirmed that certain charity membership subscriptions will be excluded from the new DMCCA subscription rules, reducing concerns about their impact on Gift Aid and membership income.
Overview
Recently there has been concern that requirements under The Digital Markets, Competition and Consumers Act 2024 (DMCCA) would prohibit charities from claiming Gift Aid on membership subscriptions. This is because there must be a cooling off period, where a refund could be claimed.
Charities raised their concerns in a Government consultation on DMCCA and the response to the consultation has confirmed that the Government intends to exclude certain types of charity membership subscriptions from the subscriptions element of the DMCCA, where the subscriptions are closely linked to a charity’s purposes.
Broadly, this will apply to contracts between a charity and a consumer that allow the consumer to attend performances, see collections, or visit places such as museums, galleries, historic properties, landscapes, wildlife sites or performing arts venues, where this access is related to the charity’s purposes.
Charities providing other types of subscriptions will still need to consider whether they are within the scope of the DMCCA rules.
The aim of introducing the DMCCA rules on subscriptions is to help people manage unwanted subscriptions, rather than being caught in a trap, for example when free trials end and turn into paid subscriptions. It was not intended to penalise the charity sector.
If you would like to discuss further, please get in touch with our Charities & Non-Profit team.
Please note that this content is not intended to give specific technical advice. It is designed to highlight some of the key changes rather than provide an exhaustive explanation of the topics. Professional advice should always be sought before action is either taken or refrained from as a result of information contained herein.
