A Guide to Gift Aid this Gift Aid Awareness Day

In the humanitarian world, a term which crops up all too often is ‘Gift Aid’, but what does it actually mean and why is it important that you #TickTheBox? This Gift Aid Awareness Day, we’re diving into what it is, the impact is has on charity and how you can get involved. Gift Aid holds immense significance for both donors and charity organisations as it allows the value of monetary donations by individual taxpayers to be boosted by 25% at no extra cost to the donor. 

How does it work?

When a UK taxpayer donates to a registered charity and opts into Gift Aid, they are allowing the charity to reclaim the basic rate tax (20%) on the donation. This means that for every £1 donated, the charity can claim an additional 25p from HM Revenue and Customs (HMRC). 

What are the benefits of Gift Aid?

Supercharged Donations – Gift Aid effectively increases the value of donations; when donations are higher, Gift Aid can make a significant impact on the funds raised. Even the smallest of donations can see huge benefits! If you donate £5 to feed our world, Gift Aid will see a whole extra meal on the table for our beneficiaries at no extra cost to you! So, it is clear how Gift Aid donations can be extremely beneficial to charities like ours. When it comes to Gift Aid, every penny counts! 

No extra Cost to Donor – Where the donor is a UK taxpayer, Gift Aid makes no difference to them or how much they pay, because the charity reclaims the basic rate tax that the donor has technically already paid directly from the government. 

Simplicity – The process of ‘GiftAiding’ your donation is simple! You can call us on 03000 11 11 11, visit our website www.pennyappeal.org or simply #TickTheBox to let us know that we can maximise your donation. 

What are the eligibility criteria?

Taxpayer Status – In order to Gift Aid your donation, you must be a UK taxpayer, either through income tax or capital gains tax. You must have paid enough income tax to cover the amount of tax being reclaimed by the charity. 

Declaration – Donors must provide a Gift Aid declaration to the charity, stating that their willingness to Gift Aid their donation, thus confirming their taxpayer status. Details like name and address must be included in the declaration so that HMRC can identify the donor. 

Gift Aid plays a crucial role in maximising the impact of charitable contributions. By enabling charities to claim back the tax on donations, Gift Aid effectively provides organisations with extra funding to support projects. Although Gift Aid might seem like just another administrative task, it has the power to save lives. You can make your donations more powerful and impactful without parting with more money. Remember, if you’re eligible, #TickTheBox and Gift Aid your donations today!