Gift Aid: what you need to know

A mystery to many of us, Gift Aid can be a bit confusing, but is it worth it and do charities really benefit? The answer is yes! According to the Charities Aid Foundation, Gift Aid has raised more than £60 billion for good causes over its 25-year existence – that’s a lot of extra money, and, if you’re a UK tax payer, you could help the charities you support make your donations go further with a tick of a box.

So, what is Gift Aid?

Gift Aid is a UK government scheme that allows charities (and Community Amateur Sports Clubs) to reclaim the basic rate of tax on donations made by a UK taxpayer. This is because when a UK taxpayer gives to charity, tax has already been paid on that money.

In other words, this means that Gift Aid allows us to claim 25% of the value of your donation to Rainbow Trust Children’s Charity – at no extra cost to you!

Once we receive your Gift Aid Declaration we’re then able to claim Gift Aid on donations made in the last four years and on any donations you make in the future.

The maths (no calculator needed)

It really is simpler than it sounds. For every pound you donate to Rainbow Trust, thanks to the Gift Aid scheme, we can claim 25p. So, if you were to donate £100 to a charity, your Gift Aid total would be £25 and so on.

If you pay tax at the higher or additional rate, you can claim the difference between the rate you pay and basic rate on your donation. See HMRC website for more information.

What you need to know

Before you claim Gift Aid, make sure you’re in the know.

  • You must make a declaration to allow Rainbow Trust to claim Gift Aid. The declaration gives us the right to reclaim the tax from HMRC on your donations. By making the declaration, you are confirming that you are happy for us to do this
  • You need to be a UK Tax payer, paying income tax or capital gains tax
  • You have to be an individual – donations made by a group of people or organisation are not eligible
  • Your donations will qualify as long as they’re not more than 4 times what you have paid in tax in the tax year you have donated
  • You can support as many UK charities as you like – you’ll just need to fill out a declaration for each charity.

Where do I sign?

To allow us to claim Gift Aid tax relief of 25p on every pound you give, you need to complete and submit a short Gift Aid declaration form. Click here to get started.

Have any questions? If you’re still not sure about Gift Aid or just want more details, visit the HMRC website or get in touch with our Supporter Care team.