Gift Aid is a simple government initiative which allows you to increase the value of your donations at no extra cost to you. For every pound you are given, you can get an extra 25 pence* from HM Revenue and Customs, helping your donations go further.
In real terms, this means that if a Group had 50 members paying £60 per year, it would give them a total income of £3,000 per year. Assuming all of the parents/guardians are taxpayers then the potential Gift Aid is around £750 per year.
If you have not claimed Gift Aid before, you are entitled to claim back the previous four years of contributions.
In the past we have found that many Groups/Districts/Counties will spend a great deal of time on a grant application with no guarantee of a return. Gift Aid does not take anywhere near the amount of time to administer as a standard grant application, and income is guaranteed, yet not everyone is doing it.
HM revenue and Customs regards Membership Subscriptions as 'donations' and Groups or Districts can claim gift aid on these fees. You can also get Gift Aid on money donated for sponsored events. Gift Aid is not available on camp or Jamboree fees because the benefit to the 'donor' is regarded as too high to qualify for the scheme.
Before applying for Gift Aid, your Group/District/County must be registered with HMRC
You can do this online at:
The following are help sheets from HMRC about gift aid:
- What is Gift Aid?
- What is a Gift Aid Declaration?
- What can I claim Gift Aid on?
- What is a benefit for Gift Aid purposes?
- Do I need to keep records of Gift Aid donations?
- Is my charity a trust or a company?
- Community Amateur Sports Clubs
- How do I run a sponsored event and claim Gift Aid?
- How do I claim Gift Aid and how often can I claim?
- How should i list donations on the schedule?
- What are the time limits for claiming Gift Aid?
- What happens if my charity is selected for a Gift Aid audit?
Further information on this can be found on the HMRC website at the following link http://www.hmrc.gov.uk/charities/gift_aid/basics.htm
For further support or information about please contact the HMRC Charities Helpline on 0845 302 0203 (open from 8.00am to 5.00pm, Monday to Friday).
Some additional Gift Aid documentation and useful information: