Grow your charitable giving with Gift Aid
What is Gift Aid?
Gift Aid gives you an extra 25p for every £1 you donate.
Gift Aid is an income tax relief designed to benefit charities and Community Amateur Sports Clubs (CASC). If you’re a UK taxpayer, Gift Aid increases the value of your charity donations by 25% because the charity can reclaim the basic rate of tax on your gift at no extra cost to you.
How does Gift Aid work?
The process is really simple; all you need to do is fill out a Gift Aid Declaration form. This is a statement from you to the charity confirming that you want to donate through Gift Aid and receive tax back on your donation. Charities don’t pay tax on most types of income, which is why the tax paid on financial gifts to charity can be claimed back.
Your donations won’t qualify for Gift Aid if they are more than four times what you’ve paid in tax that tax year. If you stop paying enough tax at any point, you must let the charity you’re donating to know.
Am I eligible for Gift Aid?
For a charity to claim Gift Aid on your donation you must first have paid UK Income or Capital Gains Tax that financial year. The tax you pay must be equivalent to the amount of Gift Aid the charity will reclaim on your donation that tax year, (and will be claimed by other charities and CASCs). VAT and Council Tax do not meet this criteria.
From April 2016, the income tax personal allowance has increased to £11,000 for individuals born after 5 April 1948. If your income is below £11,000, you will no longer be able to claim Gift Aid on eligible donations.
It’s worth noting, you can’t make donations on behalf of someone else or a company. Also CAF Give As You Earn donations are not Gift Aid eligible as they are taken from your salary pre-tax.
What if I pay higher rate tax?
If you’re a higher rate taxpayer, you can claim additional tax benefits for the donations you make to charity, which you can keep or pass on to a charitable organisation. Simply indicate how much you’ve donated when completing your tax self-assessment form.
Find out more about Gift Aid from HMRC
CAF Charity Account – Simple Giving with Gift Aid
Donating through a CAF Charity Account to your favourite causes is hassle-free.
- You only have to fill out a Gift Aid Declaration form once
- Gift Aid will then be added to every donation
- Manage all your donations in one place
- Option to give anonymously
Find out more on how CAF Charity Account can help you with your giving
To make changes to your existing Gift Aid Declaration call our Customer Service team on 03000 123 000 or log in to your CAF Charity Account and choose ‘My profile’ then ‘Gift Aid my donations’.
Are you a charity?
If you’re a charity, below are a few key facts you should know before you claim back Gift Aid on a donation:
- You must be registered as a charity with the Charity Commission
- The individual must fill out a Gift Aid Declaration form
- You can claim Gift Aid online and get payment within 5 weeks
Find out more about claiming Gift Aid as a charity on the GOV.UK website.