Gift Aid

25% added to your donation

If you are a UK tax payer, Gift Aid will automatically add 25% to your donation on Localgiving.com at no extra cost to you, by claiming back the basic rate of UK tax paid.

Normally, charities which are not registered with the Charity Commission or HMRC cannot claim Gift Aid (and many that are registered, find the process too complicated and do not claim it.)

As your donations on Localgiving.com are processed through the local Community Foundation, we can automatically claim Gift Aid for every charity on Localgiving.com, and pass it direct to them.

Up to 22% extra allowance for higher rate tax payers

If you pay a higher rate of income tax, you include your donations in the allowances on your tax return. This means that your donation costs you up to 22% less. (i.e the difference between the 28% basic rate of tax that will have been claimed by the charity through Gift Aid and the 50% top rate of tax.) The Charity Commission has given its approval and encouragement to the Gift Aid process.

What it’s worth

Gift Aid is worth nearly £1 billion a year to charities and their donors. It is estimated that £250m of tax rebates that could be claimed by higher rate tax payers are not claimed.

How Gift Aid works

Gift Aid is UK government initiative that allows tax relief on money donated to UK charities.

Gift Aid allows charities to reclaim the 20% basic tax rate plus a separate government supplement of three pence on every pound (until April 5, 2011) 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 see an example of how this affects your donation by clicking here. Please note: tax rates are subject to change.

Gift Aid rules

To qualify for Gift Aid reclaims, a donor must:

• Be a registered UK tax payer
• Donate as an individual and not on behalf of an organisation, a group of individuals or even on behalf of your family
• Pay an amount of income tax and/or capital gains tax equal to (or greater than) the tax that will be reclaimed on any donations during the current tax year
• Confirm that the donation is for the general use of the charity and will not in any way directly benefit a family member or relative
• Provide personal details for your Gift Aid declaration

To see the HMRC’s page about Gift Aid please click on the link:
http://www.hmrc.gov.uk/charities/gift_aid/basics.htm