Gift Aid

Gift aid relief is an important relief for the charity sector and can only be given where the gift is a qualifying donation, accompanied by a gift aid declaration and meets the following conditions:

In the form of money;

Not subject to repayment;

Not under a payroll giving scheme;

It is not deductible when calculating an individual’s income;

It is not associated with an acquisition of property;

No benefit is given to the donor in return for the gift;

The gift does not waiver a loan to the charity.

There are certain types of charity activities that, depending on how they are operated, may or may not be a qualifying donation:

Charity Events

Fees paid to gain admission to a charity event or to view charity property do not necessarily qualify as a gift aid payment. An admission fee in itself does not qualify for gift aid since the donor receives a benefit in return for the payment.

In order to qualify for gift aid the payment must be voluntary and must not be a compulsory fee to gain admission to the event.

Membership fees

Membership fees are often an important part of a charity’s activities, allowing the charity to inform interested members of the public of their charitable activities.

Subscription payments must not give exclusive access to facilities if they are to qualify for gift aid. However, the charity can still provide newsletters, allow members to visit and view the work of the charity and take part in charitable activities.

Membership benefits

Discounts for members and other benefits often provide an incentive to sign up new members and encourage members to visit charity property or become more involved with the charity.

Care must be taken when providing discounts to members. Where members receive benefits amounting to typically more than 25% of their donation this can result in the membership fee for a particular member not qualifying for gift aid.

Gift aid on clothing donations

With donations of non-monetary items, gift aid can only be obtained from the donor of the clothing etc. once the item has been sold and converted into a cash amount.

In summary, it is important to consider the type of donation when deciding whether the gift is qualifying for gift aid and remember to obtain the gift aid declaration.

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