Today is Gift Aid Awareness Day and we want to encourage all our supporters our donors to always remember to Tick The Gift Aid Box whenever making an eligible donation to a charity.
This annual campaign aims to reduce the amount of unclaimed and mis-claimed funds and simplify the Gift Aid process. We want to encourage those who kindly donate to us, to #tickthebox and help ensure that every pound goes as far as possible for TOFS and other charities all over the UK.
Gift Aid generates over £1.3bn in additional income for the UK charity sector each year, yet a staggering £560m still goes unclaimed each year.
What is Gift Aid?
Gift Aid is a tax relief for charities in the UK to increase donations – at no extra cost to the donor. When a charity receives a donation from a UK taxpayer, the organisation is entitled to claim an extra 25% paid on that donation.
A £10 donation processed with Gift Aid becomes a £12.50 donation.
What do donors need to do?
Donors need to #tickthebox on the Gift Aid declaration form and provide some basic personal details, and the charity can claim 25p for every £1 given.
Once a donor has given their permission by filling in the Gift Aid declaration form, there is no need for them to do anything else.
Who qualifies to donate through Gift Aid?
For charities to claim Gift Aid on a donation, the donor must have paid UK income tax or capital gains tax that tax year, at least equal to the tax that the organisation will reclaim on the individual’s donations.
Even if the donor is not currently employed they are eligible to make Gift Aid payments so long as, at some point in the tax year in which they make the donation, they pay enough tax on any of the following:
- Personal or occupational pension
- Stocks or shares
- Bank or building society savings accounts
- Rental income
- Overseas or UK investment dividends
Higher rate taxpayers
Higher rate taxpayers are entitled to claim the difference between the top rate of tax they pay, and the basic rate on the total value of the donation. Individuals can claim the additional tax relief through their self assessment tax return or by asking HMRC to amend their tax code.
Example for higher rate tax payer
You donate £100 to charity – they claim Gift Aid to make your donation £125. You pay 40% tax so you can personally claim back £25.00 (£125 x 20%).
Click here to make a donation to TOFS.
