Make your donations go further
HMRC operates a scheme called Gift Aid that allows charities to claim the basic rate tax on every pound donated. So if you donated £100 to Reading Haydn Choir, it means that you could actually be giving us £125. Giving under Gift Aid means that so much more money can be raised at no extra cost to our donors.
Gift Aid – the facts
- For individuals, the Gift Aid rules require the completion of a Gift Aid Declaration Form.This provides us with the minimum information required for us to be able to claim Gift Aid on a donation.
- Gift Aid can be claimed on individual and sponsorship donations that are made to Reading Haydn Choir.
- Gift Aid applies only to ‘gifts’. That means we can’t use Gift Aid to boost fundraising totals on activities where people have been charged an entry fee, made a purchase or have entered a competition. This also extends to activities where the donor can’t be traced (such as giving to collections).
- To ensure that the Gift Aid claim is valid, meaning we can claim the money back, it’s vitally important that all the information asked for on the Gift Aid Declaration Form is provided.
Gift Aid Declaration Forms
Any charity has to be able to provide, when requested, a valid declaration through which Gift Aid has been claimed, so it’s incredibly important that any forms sent back to us are accurate and complete. All Gift Aid Declaration Forms should include the following (which our standard form does):
- The name of our charity
- The full name and home address of the person making the declaration, including their postcode. Declarations cannot be made jointly.
- A clear indication that the person wants to make a declaration (normally a tick box is used), and a statement as to which donations are to be covered by the declaration.
- A statement that the person making the declaration understands that they have paid sufficient Income Tax and/or Capital Gains Tax to cover the amount of Gift Aid claimed on all of their donations in that tax year and they should be aware that it is their responsibility to pay any difference.
- A reminder that supporters should inform us of any changes in their tax circumstances or name/home address.
Higher Rate Tax Payers and Gift Aid
If you pay higher rate tax, you can claim the difference between the higher rate of tax you pay and the basic rate of tax (currently 20 per cent) on the total 'gross' value of your donation. If you want to receive the additional tax relief you must include all your Gift Aid donations on your Self-Assessment tax return or ask HM Revenue and Customs to adjust your tax code. The SA Donate Scheme ceased from April 2012. This means that donors can no longer send a tax refund to a charity straight from their tax return. Donors can still donate their tax refund to any charity themselves and claim Gift Aid if the qualifying conditions have been met.