Ways to Pay – the Facts
For individuals, the Gift Aid rules require the completion of a Gift Aid Declaration Form. This provides us with the minimum information required for us to be able to claim Gift Aid on a donation.
- Gift Aid can be claimed on individual and sponsorship donations that are made to gain.
- Gift Aid applies only to ‘gifts’. That means we can’t use Gift Aid to boost fundraising totals on activities where people have been charged an entry fee or have entered a competition.
- To ensure that the Gift Aid claim is valid, meaning we can claim the money back, it’s vitally important that all the information asked for on the form is provided.
Gift Aid Declaration Forms
Any charity has to be able to provide, when requested, a valid declaration through which Gift Aid has been claimed, so it’s incredibly important that any forms sent back to us are accurate and complete. All Gift Aid Declaration Forms should include the following (which our standard form does) :
- The name of our charity
- The full name and home address of the person making the declaration, including their postcode. Declarations cannot be made jointly.
- A clear indication that the person wants to make a declaration (normally a tick box is used), and a statement as to which donations are to be covered by the declaration.
- A statement that the person making the declaration must have paid or will pay an amount of Income Tax and/or Capital Gains Tax for each tax year (6 April to 5 April) that is at least equal to the amount of tax that all the charities or Community Amateur Sports Clubs (CASCs) that they donate to will reclaim on their gifts for that tax year. Other taxes such as VAT and Council Tax do not qualify. Understanding that the charity will reclaim 28p of tax on every £1 given up to 5 April 2008 and will reclaim 25p of tax on every £1 given on or after 6 April 2008
- A reminder that supporters should inform us of any changes in their tax circumstances or name/home address.
Higher Rate Tax Payers and Gift Aid
If you pay higher rate tax, you can claim the difference between the higher rate of tax 40 and/or 50 per cent and the basic rate of tax 20 per cent on the total ‘gross’ value of your donation. If you want to receive the additional tax relief you must include all your Gift Aid donations on your Self Assessment tax return or ask HM Revenue and Customs to adjust your tax code.
The SA Donate Scheme ceased from April 2012. This means that donors can no longer send a tax refund to a charity straight from their tax return. Donors can still donate their tax refund to any charity themselves and claim Gift Aid if the qualifying conditions have been met.
For more information about Gift Aid, visit the HM Revenue & Customs website.