What is gift aid?

Gift aid enables a club to get a tax rebate of £25 for every £100 donated by an individual who pays sufficient UK income or capital gains tax to cover the rebate.

Who qualifies for gift aid?

Only clubs registered as CASC's or charities qualify for gift aid tax rebates on individual donations. The donor must pay sufficient tax to cover all gift aid tax rebates to CASCs and charities on his/her donations made in the tax year.

What qualifies for gift aid?

Gifts of money with no or token benefits given in return to the donor qualify not gifts of goods or services. Membership subscriptions and participation fees paid to a CASC do not qualify.

What examples are there of cases where gift aid can be claimed?

Donations in support of a project e.g. becoming patrons of a new clubhouse qualify. Sponsored walks, swims , runs and other activities can also qualify. Instead of gifts for a birthday or anniversary party qualifying donations could be requested to the individual's nominated CASC.

What about volunteer expenses not charged?

Volunteer expenses incurred for the benefit of a CASC and not charged to it by the volunteer do not qualify for gift aid. Certain expenses could be charged to the CASC by each volunteer without prejudicing CASC status and donations made back to the CASC could generate tax rebates of 25% of the amounts charged. Great care is needed in using this approach.

What are the processes for claiming gift aid?

Donors must complete a gift aid declaration and provide this to the club for record keeping purposes.These must be available for HMRC's inspection if requested. Please see here for the link to the declaration forms. Tax repayment claims are usually made on line after the CASC registers for HMRC's online services and are paid promptly. HMRC periodically audit gift aid claims.

Can a CASC use an Online Giving Provider to claim Gift Aid?

Online Giving Providers allow your members and supporters to give online by setting up a Fundraising page in order to collect your donations in a simple and easy to manage way. Different Providers charge varying fees so take care when choosing. The websites are set up to manage Gift Aid on donations. The Provider does all the work to enable you to receive tax refunds from HMRC who will check the Provider’s Gift Aid procedures rather than yours.

Setting up an Online Giving page for your CASC will allow you to communicate why you are fundraising and it will give all of your members a simple way to make donations. You will also be given helpful tips on the best way to tell people about your page.

Are there any other benefits of gift aid?

Higher and additional rate taxpayers can receive tax rebates as well e.g. a 40% taxpayer can get a 25% tax rebate on his or her donations to a CASC.

What is GASDS?

Regular annual gift aid claims by a CASC will enable it to use the Gift Aid Small Donations Scheme (GASDS) under which HMRC will make a payment of 25% of any small qualifying cash or contactless donations of £30 or less from individuals e.g. from "bucket" collections.

Where can I get more information on gift aid?

Please see here or HMRC guidance for further information. Alternatively please contact us here.