HMRC is urging people to ensure they declare gift aid when giving money to charity, after its research found charities are losing out on extra funding worth nearly £600m a year because a third of eligible donations are overlooked
The department says that a third of eligible donations made to many of the UK’s 200,000 charities did not add gift aid by ticking a box when they could have done
Gift aid allows charities and community amateur sports clubs (CASC) to claim an extra 25p for every £1 donated. To add gift aid to a donation, donors must have paid income or capital gains tax that year worth at least the value of the gift aid being added and give the charity permission to claim it. Gift Aid costs no extra to add on to a donation.
HMRC is continuing to work closely with charities to ensure they get the most out of gift aid, including making sure their donors understand the rules, and they fully benefit from the support it gives. The gift aid small donations scheme, introduced in 2013, does not require a declaration to be made for donations worth up to £20.
Robert Jenrick, exchequer secretary to the Treasury, said: ‘The UK has thousands of brilliant charities, all working hard to make people’s lives better. Through gift aid, we are already giving charities an extra £1.3bn of funding so they can continue their important work.
‘We know how crucial this funding is. This is why we’ve just written to 50,000 charities to tell them about the gift aid small donations scheme, which makes it even easier for charities to claim a 25% top-up on their donations.’
Report by Pat Sweet
