Your Guide to Gift Aid and Charity Fundraising
One of the most important questions when it comes to online charitable giving is does this site offer Gift Aid? For those looking for a comprehensive guide to Gift Aid, and an answer to why that question is so essential, you’ve come to the right place.
Gift Aid could not be more simple: it’s all about maximising the amount of money you can give to charity—thanks to a generous government top up scheme. So for newcomers, or those who want to learn more, here is our Gift Aid guidance and advice.
What is Gift Aid?
Gift Aid is a Government scheme which adds 25p to every £1 donated to registered charities by UK taxpayers.
So, for example, if you give £20 to a charity, they can get an extra £5 if you donate with Gift Aid, thus making your contribution worth £25.
Introduced in 1990, the scheme was initially limited to cash gifts of £600 or more. By 2000, the entire concept had been rejigged to apply to all donations, and the changes have had an enormous impact on charities.
More than £1.6 billion was paid in Gift Aid in 2023 alone, showing just how effective the scheme has been.
How does Gift Aid work?
As a donor, you do not have to pay any extra to add Gift Aid to your donation. Charities claim the extra money from the government on your behalf, which means Gift Aid simply increases the amount you are giving without extra effort on your part.
Gift Aid is technically tax relief because when people give to charity, that money has already been taxed. Charities can therefore reclaim the tax you’ve paid, increasing the value of the donation you made without you having to lift a finger. Tip: if you’re a high-rate tax payer, you can claim back even more through your self assessment tax return.
Does all of Gift Aid go directly to charity?
Gift Aid helps both donors and charities in making a difference—provided, of course, that the money goes where it’s intended. One thing to watch out for with Gift Aid is whether sites are taking money intended for charities and using them to profit at the expense of good causes.
GoFundMe has never taken fees or profited from Gift Aid. In 2018, fundraising platform JustGiving was accused of using money from Gift Aid to cover its fees. Exchequer Secretary to the Treasury at the time, Robert Jenrick, said: “This is not the intention of Gift Aid, which is to provide more money for good causes and to support charities.”
What donation types qualify for Gift Aid?
The charity needs to be registered, and you need to be a taxpayer in the UK with an income of more than £11,000 who has paid income tax or capital gains tax in the current financial year.
There are some small exemptions, such as if you are making a donation in return for something else, such as a raffle ticket, or if you are donating on someone’s behalf. You also can’t claim Gift Aid if the charity is contributing to the cost of a person’s fundraising event, or on behalf of someone else or a company.
Does Gift Aid cost me anything?
Gift Aid doesn’t cost you, the taxpayer, anything. You only need to provide your name, postcode, and a donation made from a personal bank or building society account.
How does GoFundMe handle Gift Aid?
GoFundMe recently launched charity giving in the UK, where we make sure 100% of the Gift Aid goes directly to charities. Unlike some competitors, GoFundMe won’t make charities pay a subscription fee just for using its services. It really is as simple as that: no hidden fees and nothing to worry about.
In stark contrast to our competitors, our low fee structure means GoFundMe is much cheaper for charity fundraisers than JustGiving. Learn more about how the two compare on our page GoFundMe Versus JustGiving.
How does it work when you add Gift Aid to donated items?
Gift Aid can also be applicable in shops and stores.
It can be applied when items are donated to shops to be further sold. Items you want to get rid of can be donated to a charity shop where Gift Aid will be added to whatever value they’re sold for.
Gift Aid guidance for people raising money for charity
GoFundMe differs from many other charity fundraising platforms in that there are no hidden fees and the Gift Aid is exactly that – a gift that goes straight to the charity, not to boost our profits. With this information about Gift Aid, we hope you will tick that box the next time you’re giving to charity.