UK Charities

 What is Gift aid? Gift Aid allows charities to increase eligible donations by 25% at no extra cost to the donor. A £100 donation becomes £125 to the charity. Why the Charity Receives 25% (Not 20%) In the UK, the basic rate of income tax is 20%. Gift Aid treats donations as net of basic-rate tax. If a donor gives £80, the UK tax authority (‘HMRC’) treats it as £100 gross → £20 tax reclaimed → £20 is 25% of £80.

Eligibility Requirements

 Gift Aid can be claimed when: • The donor is an individual UK taxpayer

• The donation is freely given (no benefit received)

• The donor completes a valid Gift Aid declaration • The charity is registered with HMRC for Gift Aid When Gift Aid Cannot Be Claimed

• Company donations

• Ticketed events, raffles, auctions, or anything involving a benefit

• Group collections where individual donors are not identifiable • Donations made on behalf of someone else • Payroll Giving donations (already tax-free)

Higher-Rate Taxpayers

Higher-rate taxpayers can claim back the difference between basic and higher rate via their tax return. The charity still receives 25%.

How Charities Claim Gift Aid • HMRC Charities Online

• Fundraising platforms (e.g., JustGiving, Enthuse) • Charity CRM systems (Donorfy, Beacon, Blackbaud)