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About Gift Aid:
What is Gift
Aid?
Gift Aid allows charities to reclaim tax paid by UK taxpayers on any
donations they make to UK registered charities. This can be done by
means of a simple declaration and can increase the value of the
donation by 28%, so:
|
Your Donation |
Charity Get |
|
£1 |
£1.28 |
|
£10 |
£12.82 |
Charity can claim Gift Aid on all eligible donations. To be eligible
the donor must not receive benefits exceeding certain limits. A gift
will be a qualifying donation where it satisfies certain criteria.
Broadly these are:
• it must be a monetary payment, not repayable
• the gift must not be connected with acquisition of property by the
charity from the donor or connected persons
• the donor, or any connected person, cannot receive benefits in
return for the donation beyond prescribed limits set out below.
The benefits must not exceed these values:
|
Amount of Donation |
Value of benefits |
|
£0-100 |
25% of the donation |
|
£101-1001 |
£25 |
|
£1001+ |
2.5% of donation, max: £250 |
Why a charity needs your Gift Aid declaration?
In order to operate the Gift Aid scheme, charities
need to keep records to show how much has been received from each
donor who has made a declaration. Charities must keep sufficient
records to show that their tax reclaims are accurate. In other
words, they must keep records that enable them to show:
-
an audit trail linking each
donation to an identifiable donor who has given a valid Gift Aid
declaration, and
-
that all the other conditions
for the tax relief are satisfied (provision of benefits, for
example).
How do you turn you donations into Gift Aid?
You must give the charity concerned a Gift Aid
declaration. This may be given orally or in writing. Many charities
have produced declarations containing their details so you may wish
to ask the charity for a copy of this. If you give a declaration
orally, the charity will note the details of your name and address
and the amount you want to give under the scheme. The charity may
then write to you confirming the details. Please remember that you
must pay income tax and/or capital gains tax at least equal to the
amount that charities will reclaim on your donations.
Can you donate anonymously?
Yes, but for the charity to be able to claim
repayment under the Gift Aid scheme they need to be able to link the
donation with a declaration given by the donor. If a donation is
made anonymously the charity will not know if it came from a donor
for whom they have declaration.
MBL Gift Aid declaration form for
Download
Gift Aid Declaration
Form (doc)
Gift Aid Declaration Form (pdf)
Any further information, you can check at:
http://www.hmrc.gov.uk/CHARITIES/faq_donors.htm,
Donors - Frequently Asked Questions
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