Gift Aid is free money. For every £1 an eligible UK taxpayer gives, you can claim an extra 25p from HMRC. It costs the donor nothing.
Yet plenty of charities still leave it on the table. Online giving makes Gift Aid easier to collect, but only if your forms and records are right. Here's what to check.
This post is a practical overview, not tax advice. Always check the latest HMRC guidance.
1. Get a valid declaration every time
You can only claim Gift Aid if the donor has made a declaration. Online, that usually means a tick box and a few details on your donation form.
A valid declaration needs:
• The donor's full name
• Their home address (at least house name or number and postcode)
• Your charity's name
• A clear statement that they want Gift Aid to apply
• Whether it covers this donation only, or past and future donations too
• A statement that they understand they must pay enough UK tax to cover the Gift Aid
HMRC publishes model declaration wording. Using it is the safest route.
2. Make the tick box impossible to miss
Most lost Gift Aid isn't refused. It's simply never ticked. Put the Gift Aid option right next to the donation amount. Show what it's worth: "Your £20 becomes £25 at no cost to you."
Never pre-tick the box. The donor has to choose it.
3. Keep proper records
HMRC can audit your claims. For online declarations, you need to show who made the declaration, what it said and when. Store it with the donation record, not in a separate spreadsheet that drifts out of date.
4. Know what doesn't qualify
Gift Aid only applies to genuine gifts from individuals. Common traps:
• Ticket and entry fees. Paying for aplace or a gala ticket is not a donation.
• Auction purchases and raffle tickets.The donor gets something back.
• Donations with a benefit attached, beyond HMRC's limits.
• Company donations. These don't qualify.
• Money given on behalf of others, such as a collection from colleagues paid in by one person.
5. Handle sponsorship carefully
Sponsorship donations to peer to peer fundraisers can qualify, as long as each sponsor makes their own declaration and gets nothing in return. Sponsorship from the fundraiser's close family is a known grey area. If the family member is effectively paying the fundraiser's place, it can't be claimed.
6. Let donors cancel
Donors can cancel a declaration at anytime, for example if they stop paying UK tax. Make it easy to do, and stop claiming on their future gifts straight away.
7. Claim regularly
You can usually claim up to four years back. But the longer you leave it, the harder the records are to tidy. Monthly or quarterly claims keep things simple.
Small donations
Cash and contactless gifts of £30 or less may be claimable under the Gift Aid Small Donations Scheme (GASDS), without a declaration. Useful for bucket collections at events.
Let Emma do the heavy lifting
Emma captures Gift Aid declarations on every eligible donation and connects with the government's Gift Aid system, so claims are processed automatically. Less admin, more of every gift reaching your cause.
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