Gift Aid Scheme for charities
Gift Aid is a scheme to encourage individuals and businesses to donate more money to charity.
How Gift Aid works
Under the scheme, UK charities can claim back the basic rate tax already paid on gifts of money received from individuals who pay or have paid UK tax.
The scheme also allows UK companies to make gifts of money to charity before any tax is deducted.
Key requirements of the Gift Aid Scheme
- Gift Aid only applies to donations of money.
- Gift Aid donations from individuals must be supported by a valid ‘Gift Aid declaration’.
- You can give donors modest tokens of appreciation (called ‘benefits’) in order to acknowledge a gift but there are strict limits on their value.
- Your charity must keep adequate records to support any claims for Gift Aid repayments and of any benefits provided to donors.
- Donations and/or tax repayments received through the Gift Aid scheme must only be used for charitable purposes.
- Donations that give a right of admission to view a charity’s property and some other particular types of donation must follow special rules to qualify for Gift Aid.
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