Gift Aid FAQs
What is Gift Aid?
Gift Aid is a scheme from HM Revenue and Customs that allows us to reclaim an extra 25% on your donations made during the past 4 years, as well as on all future donations. This means that for every £1 you donate to GWAAC, we can claim an extra 25p.
Who is eligible?
You qualify for Gift Aid if you meet the following criteria:
You are a UK taxpayer
You pay enough tax – this is at least equal to the tax that all charities and Community Amateur Sports Clubs will reclaim in the tax year of your donation.
This also applies if you pay tax on your savings, pension plan or investment income but taxes such as VAT and Council Tax do not qualify.
If you pay less Income Tax and/or Capital Gains Tax than the amount of Gift Aid claimed on your donations in the tax year, you will be responsible for paying any difference.
Are you a higher rate taxpayer?
If you pay higher rate tax, there is an extra benefit as you are able to reclaim tax on the amount you have donated. We, as a charity, can claim the basic rate of tax on the value of your gift and you can reclaim the difference between higher rate (40%) and basic rate (20%). If you want to receive the additional tax relief you must:
- Include all your Gift Aid donations on your self-assessment tax return
- Ask HM Revenue and Customs to adjust your tax code
We would suggest speaking to your accountant if you would like to do this.
How can I Gift Aid?
All we need is a single Gift Aid declaration, which will not only cover your future donations but also donations you have made for the past 4 years. To make your declaration, you can either:
- Call our team on 0303 4444 999
- Complete it through our online donation form
- Download the GWAAC Gift Aid donation form, complete it and send it to 3rd Floor, County Gates, Ashton Road, Bristol, BS3 2JH.
Please remember to let us know if you have changed your name and address, or no longer pay sufficient tax on your income and/or capital gains tax, either by completing our online enquiry form or calling us on 0303 4444 999. We are available Monday – Friday 9am -5pm and will be happy to answer any of your queries.
Does my donation qualify for Gift Aid?
Gift Aid can be claimed on both individual and some sponsorship donations provided they are gifts.
Your donation does not qualify for Gift Aid if:
- You have been charged an entry fee e.g. a ticket for a sports event or performance
- You have bought something
- You have entered a competition e.g. a raffle
- You have donated via a Charities Aid Foundation voucher
What if I have agreed to Gift Aid to another charity?
You can support as many UK charities as you like through Gift Aid. You just need to make sure that you return a declaration to each charity that you support and you are paying enough tax during the year to cover your total annual donations.
Can I withdraw a declaration on a particular gift?
Yes - If, for any reason, you decide that your gift should not be included in Gift Aid – then simply call us and we will amend your record to reflect this.
Can you claim Gift Aid on sponsorship/donations I’m paying in on behalf of others?
It depends and this is where it gets complicated– we may be able to claim Gift Aid on fundraising events such as marathons or treks abroad. All sponsorship payments are eligible for Gift Aid if participants pay the cost of flights and accommodation themselves.
If a sponsor is connected to the participant, their donations only qualify for Gift Aid if the participant pays the full cost of the trip so that all the sponsorship money raised goes to the charity.
A ‘connected person’ is: defined by HMRC as
- a wife, husband or civil partner
- a brother, sister, parent or grandchild
- the wife, husband or civil partner of a relative
- a company under the control of the donor, or under control of connected persons
For more information about the benefit rules please visit: https://www.charitytaxgroup.org.uk/tax/donations/gift-aid/donor-benefits/
To be able to claim Gift Aid on sponsorship monies, we will need to have the details of the individuals and their permission to Gift Aid.
Can I stop giving?
Completing a Gift Aid declaration does not put you under any obligation to give again – it simply means that we can reclaim tax on the donations that you have already made, and any that you may give in the future.
We are not tax advisors and you should always seek advice from your accountant if you are unsure.