The Government operates a scheme called Gift Aid that allows charities to claim the basic rate tax on every pound donated. So if you donated £100 to The TEA Project, it means that you’ll actually be giving us at least £125.
Giving under Gift Aid means that so much more money can be raised at no extra cost to our donors.
- For individuals, the rules require the completion of a Gift Aid Declaration Form
- This provides us with the minimum information required for us to be able to claim Gift Aid on a donation.
- Gift Aid can be claimed on individual and sponsorship donations that are made to The TEA Project.
- Gift Aid applies only to ‘gifts’. That means we can’t use Gift Aid to boost fundraising totals on activities where people have been charged an entry fee, made a purchase or have entered a competition. This also extends to activities where the donor can’t be traced (such as giving to collections).
- To ensure that the Gift Aid claim is valid, meaning we can claim the money back, it’s vitally important that all the information asked for on the Gift Aid Declaration Form is provided.
- Download the form here
Any charity has to be able to provide, when requested, a valid declaration through which Gift Aid has been claimed, so it’s incredibly important that any forms sent back to us are accurate and complete. All Gift Aid Declaration Forms should include the following (which our standard form does):
- The name of our charity (ie The Tea Project)
- The full name and home address of the person making the declaration, including their postcode. Declarations cannot be made jointly.
- A clear indication that the person wants to make a declaration (normally a tick box is used), and a statement as to which donations are to be covered by the declaration.
- A statement that the person making the declaration must have paid an amount of income tax (or capital gains tax) at least equal to the amount of tax reclaimed by all charities and Community Amateur Sports Clubs on all their donations in the tax year (6th April one year to 5th April the next). Currently 25p for every £1 donated. Other taxes such as VAT and Council Tax do not qualify.
- A reminder that supporters should inform us of any changes in their tax circumstances or name/home address.
If you pay higher rate tax, you can claim the difference between the higher rate of tax 40 and/or 50 per cent and the basic rate of tax 20 per cent on the total 'gross' value of your donation. If you want to receive the additional tax relief you must include all your Gift Aid donations on your Self Assessment tax return or ask HM Revenue and Customs to adjust your tax code. The SA Donate Scheme ceased from April 2012. This means that donors can no longer send a tax refund to a charity straight from their tax return. Donors can still donate their tax refund to any charity themselves and claim Gift Aid if the qualifying conditions have been met.