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Last updated: 23 February 2010
Gift Aid offers a simple way to increase the value of a gift of money given to a UK charity or Community Amateur Sports Club (CASC) by a UK taxpaper.
How does Gift Aid work?
When a UK taxpaper gives a gift of money to a UK charity or CASC, tax has already been paid on that money. The donation therefore qualifies for Gift Aid. Because charities and CACS are exempted from tax, they can claim an amount equal to the tax paid by a donor on their donation as a repayment from HM Revenue and Customs (HMRC).
Gift Aid allows charities and CASCs to claim back 25p for every £1 donation received, boosting the value by a quarter. Since it was introduced Gift Aid has increased in size to be worth nearly £1bn a year to UK charities and their donors.
Further information on Gift Aid can be found on Direct Gov [external website].
Tailored help for charities can be found on the Tax Effective Giving site [external website].
Information for local community and voluntary groups on claiming Gift Aid via an umbrella charity