Aiding your gift so charities don’t lose out…
29 March 2018 by Lauren Hancock
As a nation we are a pretty generous bunch with almost £9 billion in charitable donations recorded in 2016. Whether it be for a run, bike ride or skydive most of us have either embarked upon a challenge for charity or sponsored someone partaking. Similarly, most of us have made a charitable donation online, by telephone or by text at some point in our lives. It is no surprise to learn therefore that more than 95% of the UK population made some form of charitable donation last year.
More surprising perhaps is how much extra could be raised each year by donors simply ticking a box or completing a form. Research commissioned by HMRC has revealed that charities are missing out on more than £550 million per year through unclaimed Gift Aid.
Gift Aid is a form of income tax relief. It enables a charity to increase the value of a donation made to it by a UK tax payer by reclaiming the basic rate of tax on the gift from the government. It requires no extra work by the donor, except perhaps the completion of a short form, and does not cost them anything extra. Put simply, the charity is claiming back the tax the donor has already paid on the donation.
HRMC’s research found that Gift Aid was not claimed for in a quarter of all eligible donations last year. In addition to inconsistencies in the option to add gift aid to donations, it blamed lack of clarity as to what Gift Aid is and when it can be claimed for the issue.
Next time you look to make a charitable donation think about whether your gift may be eligible for Gift Aid. The chances are you could raise 25% more with the simple click of a button!