Gift Aid

Gift Aid is a government scheme, which enables charities and Community Amateur Sports Clubs to reclaim tax on donations of money made by UK taxpayers.

The donor has to make a declaration giving your charity (or Community Amateur Sports Club) permission to claim the tax back on their donations. This declaration is best made in writing and can be backdated for donations made in the past 4 years (as well as covering any future donations).

Gift Aid is a good way to increase the value of your group’s income from donations. To start claiming gift aid on your donations your group will need to apply to HMRC. Gift Aid claims can also be made online using the Charities Online service from HMRC.

In Scotland, Charity Trustees responsible for charities that are reclaiming Gift Aid are required to satisfy the HM Revenue and Customs (HMRC) Fit and Proper Persons test to ensure that those dealing with tax matters are literally ‘fit and proper’.

Gift Aid small donation scheme

The Gift Aid Small Donations Scheme (GASDS) allows eligible charities and Community Amateur Sports Clubs (CASCs) to claim top-up payments from HM Revenue and Customs (HMRC) on small cash donations that they receive.

The scheme is specifically for cash donations of £20 and under, and does not include cheques, bank transfers, credit cards or text donations.

Your charity or Community Amateur Sports Club (registered with HMRC) must have been active for at least the last two tax years and be claiming Gift Aid.

Unlike Gift Aid GASDS is not a tax relief scheme, but the two are interlinked. There is strict eligibility criteria for GASDS, so you are advised to check with HMRC to see if you charity or Community Amateur Sports Club could benefit.