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Gift Aid

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Tax-effective giving through Gift Aid.

Gift Aid is a way of letting charities claim tax relief on gifts and donations made by UK taxpayers.

90% of tax-effective giving in the UK is made through Gift Aid. It lets charities claim up to 25p in the pound back from HMRC on every gift made by a UK taxpayer. UK charities get an extra £1.1bn by reclaiming tax.

Who can benefit from Gift Aid?

To be eligible for charitable tax relief, you need to be either:

  • a registered charity
  • an organisation that is recognised as tax exempt by HMRC because of its charitable nature (for example, scout groups).

Donors also benefit from the tax-relief: higher-rate taxpayers get a personal income tax relief, in addition to the basic rate tax paid back to charities.

How does Gift Aid work? 

To claim tax back through Gift Aid, charities need a donor to provide basic contact details, and sign a declaration that says they’re a UK taxpayer and want the charity to claim back the tax.

For TV fundraising campaigns like Comic Relief, this can be done over the telephone, as long as donor details are captured and followed up later.

Charities that get donations of goods (for example, charity shops) can take a donor’s details and claim Gift Aid against the sale value of the donation. Many charity shops now keep donors’ details and offer the donors a Gift Aid card, so that they don’t have to repeat their details every time they donate.

More information about gift aid for charity shops can be found at the Institute of Fundraising

Get more help

HMRC guidance and information on tax-effective giving

Institute of Fundraising guidance and information on tax-effective giving

Page last edited Mar 03, 2017

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