By doing the simple thing of declaring Gift Aid on their donations, donors can help boost the money that reaches 
their charity of choice at no extra cost.
HMRC’s campaign to encourage people to tick the Gift Aid box comes after research showed that charities are losing out on potentially hundreds of millions of pounds in extra funding.
Currently UK charities receive an extra £1.3 billion of funding through Gift Aid which enables them to continue their important work.
HMRC has written to 50,000 charities to tell them about the Gift Aid Small Donations Scheme, which makes it even easier for charities to claim a 25% top-up on their donations.
Research by HMRC shows that a third of eligible donations made to many of the UK’s 200,000 charities did not add Gift Aid when they could have done. This means that charities are losing out on extra funding worth nearly £600 million a year.
Gift Aid allows charities and community amateur sports clubs (CASC) to claim an extra 25p for every £1 donated. To add Gift Aid to a donation, donors must have paid income or capital gains tax that year worth at least the value of the Gift Aid being added and give the charity permission to claim it. Gift Aid costs no extra to add on to a donation.
HMRC is continuing to work closely with charities to ensure they get the most out of Gift Aid, including making sure their donors understand the rules, and they fully benefit from the support it gives.
The department has also written to 50,000 charities to promote the Gift Aid Small Donations Scheme, introduced in 2013, to explain how easy it is to claim a 25% top-up on cash donations. The scheme does not require a declaration to be made for donations worth up to £20, making it simpler for charities to get extra support through Gift Aid.
You can read our earlier blog on the Gift Aid here
The Bedrock Team is experienced in working with charities to help them stay on top of tax regulations as it applies to them whatever their charitable focus. Get in touch today if you’d like to discuss how we could work together.
