Gift Aid

Did you know that the donations you collect on behalf of charities can be increased with Gift Aid?

You can increase donations by a quarter by simply asking donors permission to reclaim the tax they have already paid to HM Revenue and Customs.

Every year half a billion pounds is claimed through Gift Aid tax relief.


So what is Gift Aid?

Gift Aid is a government run scheme that allows charities to claim back tax on behalf of the donor. The individual donating cash must be a UK tax payer for the charity to be able to claim Gift Aid. Gift Aid is essentially the tax already paid on the sum of money donated.

As a rule of thumb for every £10 donated SBS can reclaim another £2.50 on the donor’s behalf.


How do I collect Gift Aid?

If you are a fundraiser, collecting money on our behalf, then you need to make sure that donors fill in a Gift Aid declaration form. The person giving the cash donation is able to declare Gift Aid if the amount of income tax or capital gains tax they have paid over the last tax year is equal or greater than the amount of basic rate tax the charity is reclaiming on the donation.

For example, if the person were to donate £1,000 to charity, they can allow the charity to claim Gift Aid so long as they have paid £250 in income or capital gains tax in the tax year that they are donating the money. If the person is making numerous donations in a single tax year they must consider the tax claims accumulated from the previous cash gifts.

Remember they don't have to be working to qualify for Gift Aid. Apart from taxations on their income from work or self employment, tax can also include, tax from savings, state pensions, investment or rental incomes.  Higher rate tax payers can also claim back some of the relief; click here for more details.


Gift Aid Tips for Fundraisers and Charities

As you can see Gift Aid is a great way to boost the amount of cash that we can receive for our work. So make sure you promote Gift Aid. Include Gift Aid information on all marketing material and take time to explain to potential donors how important Gift Aid actually is.

If the donor doesn't fill in the Gift Aid declaration fully, then you are not allowed to claim back Gift Aid. With this in mind it's essential you chase up donations to make sure that everyone who is eligible has signed the dotted line.


Useful information for higher rate tax payers

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