It is estimated that around 10% of the charity sector’s income comes from rag but with prices falling, ensuring an HMRC-recognised route to collecting Gift Aid on rag is crucial to safeguarding this revenue stream.

We’ve developed a Gift Aid on Rags (GAoR) solution to ensure that it’s simple to use by staff and volunteers whilst at the same time meeting HMRC requirements.

Any rag donations that have been Gift Aided by the donor are eligible for the full 25%* of the sale price in Gift Aid, thus presenting a significant income stream for charities. However, the fluctuating price of rag and the varying levels of rag collected each week make it notoriously difficult to capture this revenue.

Our GAoR system is operated using a hand held scanner in the backroom which allows staff and volunteers to scan only the barcodes specifically for rag bags that are being collected on that day.