What is Gift Aid?
Gift Aid allows charities to claim back the tax that has already been paid by donors as income or capital gains tax. This means LinkAble can get an extra 25p for every £1 donated by a UK tax payer.
How does it work?
Anyone can make a Gift Aid donation as long as they are a UK taxpayer and pay sufficient tax. “Sufficient tax” means that you’ve paid more tax in the financial year than Gift Aid to be claimed, i.e. if you make a £10 donation with £2.50 claimed in Gift Aid, you have to have paid at least £2.50 income or capital gains tax in the year!
With a valid Gift Aid agreement, LinkAble can claim the tax back from HMRC. There is no cost to the donor and Gift Aid can be applied to any amount. For joint donations, we can only claim Gift Aid if we have details of what each person has contributed and have completed Gift Aid declarations from each donor.
What do you need to do?
Where possible, ask your sponsors/donors to sign and date the Gift Aid box on the sponsor form (or the declaration box if giving online.) A home address must also be provided for verification (work addresses are not valid.) To ensure that our claim is considered valid it is important that sponsors fill in their own details (rather than you doing it for them) and that you only use LinkAble sponsorship forms. You should then send the form(s) to us with your donation.
To download a copy of our Gift Aid form, click here.
Can Gift Aid be claimed on all donations?
In addition to the information above about paying sufficient tax, there are a few other exceptions. Donations cannot be Gift Aided if:
• The donor is receiving a ‘substantial benefit’ from taking part in the event, e.g. a large gift or hospitality etc.
• The donation is not from an individual with a valid Gift Aid declaration, i.e. a donation from a company.
• The donation is from another person, even a valid tax payer, but they have given the money to you to donate on their behalf.
If you have any questions or queries about fundraising for LinkAble, please call us on 01483 770037 or email firstname.lastname@example.org