Sunday, 23 June 2024
UK Charity Week 2024 - Sponsored by Sinclair Method UK
Sunday, 23 June 2024

Charities need to enable Gift Aid for contactless donations #TickTheBox

GIFT Aid Awareness Day took place on the 6th of October and charities across the UK took to social media to encourage donors, supporters, volunteers and others to #TickTheBox.

Given the cost of living crisis, it is more important than ever for donors to opt-in to Gift Aid so charities can benefit from the additional uplift in donation revenues.

At Give A Little, we know just how much of an impact Gift Aid can make to the charities using our platform. For example, charities subscribing to Give A Little benefited from an additional income of £450,000 pounds in the last 12 months that they would not have received if they hadn’t enabled Gift Aid on their fundraising campaigns.

One of the substantial benefits of cashless giving over cash bucket collections is that charities can utilise software developed especially for the donor-facing experience and enable valuable features such as Gift Aid and marketing communications opt-in. In the past, when donors threw coins in a bucket, charities never knew who their donors were, whereas cashless giving allows charities to upload donor contact information, for those that opt-in, to their Customer Relationship Management System (CRM) and take them on a supporter journey. Cashless giving also delivers higher average donation values. At Give A Little, we see average donation values of £10.49 for contactless/ Chip + PIN donations and £40 for online fundraising campaigns.

It’s incredibly easy to create App and Web fundraising campaigns on Give A Little and choose whether to enable donors to opt-in to Gift Aid. We show you how you can create an online fundraising campaign in just two minutes and share it with a QR code in our recent digital fundraising tips video.

Give A Little account administrators can also export reports with the claim data that HMRC requires making their claim easy and efficient.

Coming soon!

We will soon be launching an update to the donor experience to provide more choice around Gift Aid declarations including the ability to Gift Aid later and more flexibility for administrators in how they design Gift Aid into their campaigns. Watch this space for more information…

What is Gift Aid?

Adding Gift Aid to donations means charities and Community Amateur Sports Clubs (CASCs) can claim an extra 25p for every £1 given. It will not cost the donor any extra. The Gift Aid scheme is unique to the UK and donors need to be UK taxpayers. Charities can claim Gift Aid on most donations, but some payments do not qualify (read more on the Gov.UK website).

The donor must:

A declaration has to be made to each individual charity that the donor wants to donate to through Gift Aid.

If HMRC discovers that a charity has claimed gift aid relief on a gift by a non-taxpayer, the legal liability to repay the tax falls on the donor.

Gift Aid small donations scheme (GASDS)

Charities and CASCs may be able to claim 25% on the following without needing to have a Gift Aid declaration:

To qualify, the charity or CASC must have claimed Gift Aid:

The amount of small donations on which the repayment can be claimed is capped at £8,000, or ten times the amount of donations on which it claims Gift Aid in the tax year. (See gov.uk for more information)

Give A Little account administrators are able to export records of eligible contactless card donations, which are required to make the claim.

Find out more about Gift Aid Awareness Day at https://cfg.org.uk/news/tickthebox and if your charity would like to try out Give A Little and reap the benefits of the updated Gift Aid experience, create your account here!

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