The government has reformed the Gift Aid Small Donations Scheme (GASDS), after campaigning from CFG and other charity bodies, which means that more charities can benefit from it.
New charities, or charities which irregularly claim Gift Aid, are now eligible for the scheme so long as they claim enough Gift Aid in the year.
The matching rule means that for every £1 of Gift Aided donations, you can claim up to £10 of Gift Aid Small Donation Scheme money up to a value of £8000.
This means that charities which carry out fundraising through small cash donations such as bucket collections are able to claim Gift Aid style payments on their fundraising – boosting the value of fundraising by 25%.
Charities which carry their activities out of a community building such as a community centre may also be eligible to claim on small donations to support their upkeep.
Given the cuts to grant funding and the more challenging fundraising environment, every charity should be seeking to make the most out of the tax reliefs that are available to them.
Resources to help you understand GASDS and Gift Aid can be found on the Small Charities Programme website here.
If you have any questions about the Gift Aid Small Donations Scheme and how you can use it in your charity, contact the CFG Policy Team (firstname.lastname@example.org).
Andrew O’Brien, Head of Policy at CFG, has written a blog detailing HMRC’s response to common Gift Aid questions here.