The regular charity donators among you may have heard of this fantastic initiative that has been in place for quite a while now. Gift Aid is a great way to give a little bit more to a charity without paying anything more.
Sounds too good to be true, right? How does this mind boggling process work? Join us as we look at how Gift Aid operates and what that means for our charity donations.
What Is Gift Aid?
Gift Aid is a tax incentive in the UK which allows charities to claim back the basic rate of tax on their donations. For every £1 that you spend, the charity can claim back 25p, which soon adds up, especially as charity shops are becoming a popular shopping alternative.
How Does It Work?
Income tax payers in the UK can add Gift Aid to their charity donations by completing a short declaration which simply states that they pay income tax. By declaring this, basic rate taxpayers can add around 25% more value to their donations which the charity can then claim back. These forms provide minimum information which is required for the charities to claim this tax back.
As long as your gift aid donations don’t exceed the amount of tax that you have paid in the current tax year more than 4 times, you will be eligible to donate with Gift Aid. If your circumstances change, it is imperative that you inform the charity so that you avoid any extra charges from the HMRC claiming overpaid Gift Aid money back from you.
What Do I Need to Do?
To qualify to donate to a charity with the additional Gift Aid, you simply need to fill out a declaration form, informing the charity that you pay income tax in the UK.
This declaration doesn’t require you to donate regularly to the charity, but any donations that you do provide will allow the charity to claim 25% back on every £1 that you donate from the government. It is simply giving the charity permission to gain a little extra cash at no expense to yourself.
As long as you are eligible, the charity will be able to claim. You can even add gift aid to your sponsorship events, providing that each donator provides their details.
Our charity EPoS systems make collecting Gift Aid a whole lot easier for the charities that use our systems. With this automated system, charities and consumers can be sure that the Gift Aid will definitely be processed, and the charities can benefit from it in a quicker, more beneficial time. If you are looking for a stress free way to process Gift Aid in your charity shop, contact Chairty Retain Systems today by calling our team on 01204 706 000 and find out how our CHARiot system can aid your charity.