Recovering Gift Aid

Gift Aid is a scheme whereby the Government allows charities to claim back tax on donations, boosting the value of gifts by 25p for every £1 given – at no additional cost to the donor.  You can claim Gift Aid as a registered charity or, if your income is below £5,000 and you have not registered, as a recognised charity.

As there is no additional cost to the donor it is important to promote the option to reclaim gift aid throughout your promotional campaigns and when accepting donations locally.

To reclaim gift aid you need to have a declaration from the donor that s/he is living in the UK and paying tax up to or more than the amount of the recoverable gift aid.  The declaration also needs to state their full name, house name or number, street name, town and postcode.  Only one declaration is needed as it will roll over to cover all donations received after that date until the donor advises their wish to cancel.

This does require methodical data capture which, if done correctly, can then transfer over to the online form required by HMRC.