If you’re a UK tax payer, Gift Aid will automatically top up your donation on Localgiving.com by 25% at no extra cost to you. Gift Aid is a government scheme that encourages charitable giving.
Typically, if a charity is not registered with the Charity Commission or HMRC, it cannot claim Gift Aid (and many that can claim Gift Aid don’t because they find the process too complicated).
But, Gift Aid makes a huge difference to small charities. Localgiving.com automatically claims Gift Aid for every charity and community group on the website, passing it directly to them, so they can get the benefit of Gift Aid without the hassle.
If you pay a higher rate of income tax, your donations may be included in the allowances on your tax return. This means that your donation costs you up to 22% less. The Charity Commission has given its approval and encouragement to HMRC’s Gift Aid process.
Gift Aid is worth nearly £1 billion a year to charities and their donors. It’s estimated that £250 million of tax rebates that could be claimed by higher rate tax payers to benefit UK charities are left unclaimed.
Gift Aid is a UK Government initiative that allows tax relief on money donated to UK charities.
Gift Aid allows charities to reclaim the basic tax rate for a total of 25% on every donation. This means that for every £1 donated, HMRC will provide an additional £0.25 supplement on the donation. Please note: tax rates are subject to change.
To qualify for Gift Aid reclaims, a donor must:
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