GiftAid explained
Gift Aid is a UK tax incentive that allows charities to claim an extra 25% on donations made by UK taxpayers. This means that for every £1 donated, the charity can claim an additional 25p from HMRC.
The benefits of Gift Aid for charities are significant, as it allows them to increase the value of donations without any extra cost to the donor. This additional income can be used to fund vital services, research, and projects.
For fundraisers, Gift Aid is a simple way to increase the value of their donations. All they need to do is ensure that they are a UK taxpayer, and provide a Gift Aid declaration to the charity. This can be done via paper form, online, or through a mobile app. If you are donating through givestar; you will see a tick box saying 'Would you like to add GiftAid' and you simply tick 'yes', add your details and we will do the rest for you.
To claim Gift Aid, charities must be registered with HMRC, and have the appropriate systems in place to manage Gift Aid donations. They must also keep accurate records of all donations and Gift Aid claims, and submit claims to HMRC at least once every financial year. This is quite an arduous process for charities and so we developed a system that allowed us to collect and process GiftAid on the charities' behalf and distribute it directly to their bank account. We also manage all of the data and records, giving them real-time reporting in their dashboard so they can see how much has been claimed, by whom and on what date. This has been a huge benefit to charities, saving them huge amounts of time and resources that can be better spent managing fundraisers and generating income for the charity.
