Last year we were able to add £28,000 in Gift Aid from the Inland Revenue to the donations we received!
How Gift Aid Works
Under the Government’s Gift Aid scheme, the centre can reclaim tax on the donations made by UK taxpayers.
In practice this means that for a person who pays tax, for every £100 they earn, £20 will be paid in tax and they will receive the other £80. If that person comes to the clinic and leaves a donation of £80, we can then claim the tax paid on that amount back from the HM Revenue & Customs. So from an £80 donation we can claim £20 (25%) back from the Gift Aid. So from the £80 donation we end up receiving £100 in total!
You must pay an amount of Income Tax and/or Capital Gains Tax for each tax year (6 April one year to 5 April the next) that is at least equal to the amount of tax that the charity will reclaim on your gifts for that tax year.
In the case of higher rate tax payers it is not only the charity that can claim tax back – you, the taxpayer can do so as well! If you are a high rate taxpayer you can reclaim the difference between the basic and the higher tax rate (currently 20%) on the donation (before the deduction of basic tax). In our example above the gross value of the donation before deduction of basic rate tax was £100 – as a high rate taxpayer you could claim back the upper 20% of tax paid (£20).
We would like to remind all our supporters to let us know if their circumstances change so that any future donations are treated correctly.
Why is regular giving useful?
Because it allows us to plan ahead. As much as we appreciate all the donations we receive, regular donations are particularly useful because they provide stability – crucial in a relatively small organisation as ours.
Regular giving can be in the form of a standing order, a Direct Debit or through payroll giving (which means tax is automatically deducted). It may be easier to give a smaller amount each month or quarter, rather than a larger amount as a one-off donation. You can setup a direct debit online using our Virgin Money Giving page, or download and print this donation form. Make sure you complete all the relevant parts, including Gift Aid, then post it to us at the address at the bottom of the page.
Payroll giving means that a donation is deducted from your salary, before tax. This ensures that we receive all the tax on your donation, which for higher rate tax payers adds 40% to their donation. So not only is it easy for you – it also increases the size of your donation! For more details on payroll giving have a look at the Charities’ Aid Foundation website. Also check with your payroll administrator to see if your employer is already set up to do this.