A review of the effectiveness of the Gift Aid Small Donations Scheme has been launched by NCVO, the Institute of Fundraising, and the Charity Finance Group.
The three umbrella bodies launched the review after HM Revenue & Customs published data showing the scheme has raised only £7m.
The review includes a survey of voluntary organisations, open until 27 June, to find out whether they have made a claim under the scheme, and what problems and barriers they have encountered. Information collected will be used to lobby for changes to the scheme to make it easier for charities to use.
The GASDS allows charities to claim a gift aid-like relief of up to £1,250 a year on £5,000 of small cash donations even if they do not have the usual gift aid paperwork.
But to do so a charity must already have claimed gift aid for two of the last four years, must claim gift aid in the same year as making a GASDS claim, must have a good record with HMRC, and must not be “connected” to another charity by having the same trustee board.
The three infrastructure bodies have previously said they feel these conditions are too onerous and have prevented charities from making claims. Ian Theodoreson, chair of the CFG and chief financial officer of the Church of England, has said parish churches are losing out on £16m a year under the scheme because of the connected charity rules.
Anna Bloch (pictured), senior policy and public affairs officer at the CFG, said: “As early indications show the GASDS has fallen well below the intended target, we want to understand why this is happening.
“A number of reasons could be responsible such as a lack of clarity around the eligibility criteria or an overly burdensome claiming process. This research will allow us to have an informed conversation with government about how to improve the scheme.
“It is crucial that government engages with the sector on this issue to ensure the effective use of charitable funds.”
Daniel Fluskey, head of policy and research at the IoF, said: “With only £7m claimed so far, we think this is the right time to explore whether the scheme is operating as well as it can.”
