Gift Aid is a scheme that lets UK taxpayers easily supercharge their charity donations. Every time you say ‘yes’ to Gift Aid, each £10 you give becomes £12.50 for the charity at no extra cost to you. 

And if you’re a higher or additional-rate taxpayer you can later claim some further tax back (which you could donate too). Download and complete a Gift Aid Form

What is Gift Aid and how does it work?

Gift Aid is a government scheme that lets Registered Charities, ‘Charitable Incorporated Organisations’ and ‘Community Amateur Sports Clubs’ claim tax relief on the donations that you make to them.

Community Interest Companies (CIC’s) are not charities and cannot claim gift aid.

When you donate to charity, it’s usually from your after-tax income. But if you agree to Gift Aid, the charity can claim back your basic-rate (20%) tax back from HM Revenue & Customs. Essentially, your donation gets a little boost!

To claim Gift Aid on your donation, we will need: Your name and address and an email address and your agreement with a gift aid declaration. We have included all this in an easy to complete form which you can return to us by e-mail.

‘Do I need to sign the form?’ No…that’s the easy part but you must mark the check-box before returning the completed form.

Here’s how it works…

You make a donation of £100 to The Okehampton Food Bank and agree we can claim Gift Aid. We then claim £25 from the state in tax relief, meaning your total donation now amounts to £125.

But, wait – ‘why is Gift Aid an extra 25% if the charity’s claiming basic 20% tax?’

This is down to a quirk of how the Gift Aid tax-relief scheme works. The charity is allowed to claim 20% of the pre-tax amount you earned to make that donation. 

So, to donate £100 from your post-tax income, you would’ve needed to earn £125 before tax (since 20% of £125 is £25).

The charity then claims 20% of that pre-tax £125, which is £25. And voilà, that £25 is 25% of your original £100 donation!

A quick question

Are there any sort of charity donations that don’t qualify for Gift Aid?

Yes, there are a few scenarios where the charity can’t claim Gift Aid (and you shouldn’t give your permission), including…

Donations where the cash hasn’t all come from you. For example, if you were collecting sponsorship money, and then donated it all in one go, this wouldn’t qualify for Gift Aid. (Note that online charity crowdfunders are fine, because each person donates directly to the charity rather than giving the cash to the person who set up the page.)

Donations of money from a company. If you are making a charity donation on behalf of a company, this won’t qualify for Gift Aid, even if you make the donation from your own credit or debit card and then later claim it back. 

For full information about what sort of payments do and don’t qualify for Gift Aid, go to Gov.UK.