Gift Aid

Gift Aid is an arrangement that allows charities (including churches) to reclaim tax on a donation made by a UK taxpayer. This means every donation will be worth 25% more, at no extra cost to the giver. For example, with Gift Aid the charity can claim an extra 25p for every £1 donated, which makes a huge difference.

If you would like to support your church with Gift Aid, you simply need to complete a Gift Aid Declaration. A Gift Aid Declaration is the giver’s declaration that they wish for the church to reclaim tax on their gift. It’s easy to complete your Gift Aid Declaration and can be made by email or over the phone. 

How does it work? 

Parish churches must first register with HMRC. They then ask all their eligible givers (i.e. UK taxpayers) to complete a Gift Aid Declaration. The church keeps a record of all eligible Gift Aid donations and periodically submits a summary to HMRC who pay the reclaimed tax back into the church’s bank account. Learn more about how your church can claim Gift Aid  

Giving to the church

Gift Aid Small Donations Scheme (GASDS)  

The Gift Aid Small Donations Scheme or GASDS as it’s more commonly known was introduced in April 2013 to enable charities and churches to claim Gift Aid on small cash donations, where no Gift Aid Declaration had been given. For example, cash collected in buckets via street collections, in donation boxes in museums and art galleries or in plate collections and visitor donations in wall safes. 

 

What is a Small Donation?
How does it work?

HMRC have issued the following statement about GASDS if church buildings are closed: 

In respect of GASDS, guidance on the eligibility for donations for inclusion in this scheme is clear in stating that claims can only be made on cash donations of £30 or less; and contactless card donations of £30 or less collected on or after 6 April 2019. The decision over what constitutes an eligible donation is one for the church/charity to make for themselves, rather than for HMRC, but the conditions for something to be considered a ‘small donation’ are clearly set out in legislation. Where it is the case, for example, of separate donations being given in a single envelope, then if the church/charity official is happy these are clearly separate ‘small donations’ (and clearly stated as such) then they will be eligible for GASDS, as is the case where separate envelopes are used”. 

Churches could help to make it easier to distinguish such gifts by providing separate collecting plates/donation receptacles reserved for saved-up donations when the lockdown restrictions are eased.