Gift aid

Gift aid is tax relief on money donated to UK charities. HMRC treats donations as if the donor has already deducted basic rate tax from them. The charity can then reclaim this tax to increase the value of a donation.
For instance, if a donor gift aids their donation, the charity will receive an additional 28p for every pound the donor gives. The charity can claim gift aid of 25p on every pound and from 6 April 2008 until 5 April 2011 HMRC is also operating transitional provisions for gift aid donations made, paying a government supplement of 3p on every gift aided pound.
Gift Aid was originally introduced in the Finance Act 1990, but was originally limited to cash gifts of £600 or more. The policy was substantially revised in 6 April 2000, when the minimum donation limit was removed. A similar policy applies to charitable donations by companies that are subject to UK corporation tax.
Gift Aid was originally intended for cash donations only. Since 2006 however, HMRC has allowed tax on the income earned by charity shops acting as agent for the donor to be reclaimed, although to operate effectively, the charity needs HMRC-approved systems to be able to record and track the progress of each item from receipt to sale, and confirm with the donor that the donation should still go ahead.
Charity campaigners are calling for an opt-out form of gift aid rather than the current opt-in.

« First | previous | Displaying 1 to 4 (of 4) | next | last »

School increases gift aid income by 50 per cent after CRM healthcheck

School increases gift aid income by 50 per cent after CRM healthcheck 0

IT | Gareth Jones | 11 Dec 2009

Gareth Jones hears how the North London Collegiate School increased its gift aid revenue by 50 per cent, and how educational bodies are not making the most of their fundraising potential.

Retail therapy

Retail therapy 0

IT | Tania Mason | 1 Mar 2009

Technology is driving huge change in all areas of operations within civil society organisations, and charity shops are no exception, finds Tania Mason The last year or two has seen the widespread adoption of a new income stream for many charities – the collection of gift aid on items donated to shops. Several of the bigger shop chains have embraced this technology, including Help the Aged, Sense, British Heart Foundation, and Sue Ryder Care.

We need to talk about finance

We need to talk about finance 0

IT | Roger Chester | 1 Apr 2007

How connecting technology can help to improve relationships across an organisation

A tangled web: tax and charities online

A tangled web: tax and charities online 0

IT | 1 Mar 2007

An in-depth look at trading issues around charity websites

« First | previous | Displaying 1 to 4 (of 4) | next | last »