What is Gift Aid and how does it work?

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Gift Aid is a government scheme that lets charities and claim tax relief on the donations that you make to them.

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When you donate to charity, it's usually from your post-tax income. But if you agree to Gift Aid, the charity can claim back your basic-rate (20%) tax back from HM Revenue & Customs. Essentially, your donation gets a little boost!

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To claim Gift Aid on your donation, the charity will need:

• Your name and address

• You to declare that you pay tax in the UK of an amount at least equal to the amount the charity will claim in Gift Aid on your donation (those who pay no tax shouldn't use the Gift Aid scheme).

• Your signature (or a box ticked if it's online) and the date.​​

 

Here's how it works...

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You make a donation of £100 to a charity, and agree the charity can claim Gift Aid. The charity then claims £25 from the state in tax relief, meaning your total donation now amounts to £125. 

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When you make a donation we must be able to identify it: - 

 

• If you register using a credit card, all future payments made on that card using the DONA terminal or online will also qualify for gift aid. ​

• If you use Bank Transfer, please include your reference, usually your name or Gift Aid Reference.

• If you make a cash donation, please put the money in an envelope with your name and reference on it, and then put the envelope in a collection bag on Sunday.  

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Please note you must pay more tax in a year than is taken in all your gift aided donations to all charities.  (See the video for a detailed explanation)

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Please also note that Gift Aid can only be claimed at 20% for basic rate tax payers.  If you are a higher rate tax payer you can reclaim addition tax rebate on your giving through your Tax Return.