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6.5 What is Gift Aid?

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Charitable organisations and Community Amateur Sports Clubs (CASCs) can register with HMRC to claim Gift Aid, allowing them to claim an extra 25p for every £1 donation received (for basic rate tax payers).  Gift Aid will not cost you any extra.

​While charities and CASCs can claim Gift Aid on most donations, some payments don’t qualify. For donations from individuals, the donor must:

  • Have paid the same amount or more in Income Tax or Capital Gains Tax in that tax year
  • Make a Gift Aid declaration that gives you permission to claim it

How do I claim Gift Aid?

  • You must maintain a list/database of all individuals who donate with Gift Aid as well as a signed declaration from each individual
  • You make your claim on the HRMC websites portal for Gift Aid Claims https://www.gov.uk/claim-gift-aid-online or with on paper with a ChR1 form which can be obtained by calling 0300 123 1073

Your organisation can’t claim on donations:

  • From limited companies
  • Made through Payroll Giving
  • That are a payment for goods or services or made because your charity or CASC bought goods and services
  • That started as loans, but no longer need to be repaid
  • Where the donor gets a ‘benefit’ over a certain limit
  • Shares the charity may hold
  • From charity cards or of vouchers, e.g. Charities Aid Foundation (CAF) vouchers
  • Membership fees to CASCs
  • Made before the organisation was recognised as charity or CASC

Note. There are special rules on claiming Gift Aid for:

  • Funds from sponsored challenges e.g. overseas treks or marathons
  • Charity membership fees
  • Church collections
  • Sale of goods on behalf of individuals, e.g. through a charity shop
  • Charity events or to view charity property
    Charity auctions
  • Volunteer expenses donated back to your charity or CASC
  • Funds raised through charities involved in running schools

For more information on these special rules, and all other aspects of claiming Gift Aid, visit www.gov.uk/claim-gift-aid/overview.

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