Claiming Gift Aid

Gift Aid is the basic tax which charities can claim back on donations made to their charity, where the individual donors have already paid income tax.

A £100 donation from an individual is worth £125 to the charity if Gift Aid is claimed.  This is because basic tax is paid at 20%, so the tax paid by the individual would have been £100 x 20/80 = £25.  The charity can reclaim this tax.

There are 3 conditions which must be met before the charity can claim the Gift Aid:

  1. The charity must be recognised as a charity by HM Revenue & Customs. (This does not mean that it must be registered at the Charity Commission.)
  2. The charity is responsible for obtaining and retaining declarations for any donations on which Gift Aid is claimed.
  3. There are specific limits about any benefit which the donor may receive as a result of their donation.

The Gift Aid Small Donations Scheme (GASDS) means that eligible charities can claim a top-up payment on cash donations of £20 or less without the need to collect Gift Aid declarations.  Charities will generally be able to claim on small donations of up to £5,000 per year.  Claiming for £5,000 of small donations will result in a repayment of £1,250 for the charity. (The threshold is due to be increased, enabling claims relating to £8,000 of small donations, yielding £2,000 repayment from April 2016.)

For help with Gift Aid and more

A range of services provided by WYCAS (West Yorkshire Community Accounting Service) are available to help your organisation claiming Gift Aid and GASDS including Gift Aid, GASDS and Charities on line: A Good Practice Guide. To find out more contact WYCAS.

WYCAS have been a great help to us, in setting up the system for reclaiming Gift Aid - and advising us how we can take advantage of the Gift Aid Small Donations Scheme.  This provides more money for running the annual arts Festival." 

Chapel Allerton Arts Festival