Qualifying Gift Aid donations

Donations must be gifts of money

Donations of money in any of the following forms are acceptable:

  • Cash
  • Cheque
  • Direct debit
  • Credit or debit card
  • Postal order
  • Standing order or telegraphic transfer

Note: Gifts made by cheque only count as received once the cheque has cleared

You can accept gifts of money made in Sterling or any foreign currency.

Gifts from individuals

Gifts made by individual donors must be from their own money and they must pay or have paid sufficient UK tax for the same tax year as the donation is made to cover the repayment that will be claimed by the charity. Donors must confirm these facts in a Gift Aid declaration for a gift to be treated as a Gift Aid donation.

An individual can’t make a donation under Gift Aid using someone else’s money.

Your charity can, however, accept that donations drawn on joint bank accounts are from the account holder who has completed a Gift Aid declaration.

Payments that don’t qualify as Gift Aid donations

Payments that don’t qualify as Gift Aid donations include:

  • Donations in the form of a loan waiver or debt conversion (eg an individual may loan money to your charity and then, at a later date, agree that the charity does not have to pay him back. This is not a gift of money it is the waiver of a loan)
  • Gifts made on behalf of other people (eg a membership subscription paid on behalf of somebody else – this is a gift of membership from the payer to the member not a gift made to the charity.
  • Gifts that come with a condition about repayment.
  • Gifts with enforceable conditions about how your charity should use the money. (eg on condition that the charity purchases goods or services from the donor).
  • Payments received in return for goods or services - these are not gifts (eg payment for admission to a concert; payment for a raffle ticket; an entrance fee for an adventure challenge event etc).
  • A 'minimum donation' where there is no choice about payment - this is simply a fee for goods or services, it is not a gift.

For more information see the guidance about: avoiding common misunderstandings and special rules particular types of donations.