Could you be missing out on Gift Aid?

The Gift Aid Small Donations Scheme (GASDS) allows eligible charities and Community Amateur Sports Clubs (CASCs) to claim the Gift Aid top-up from HM Revenue and Customs (HMRC) on small cash donations under £20 where no declaration has been provided by the donor.

This scheme has been in place since 2013 and is well taken up boosting Gift Aid claims of most charities by £1,250 per year. From 5 April 2016 the annual limit was increased from £5,000 per year to £8,000 per year which increases the top up to £2,000.

However, there are provisions which are less well exploited for a single charity to claim multiple top up payments relating to collections held in “community buildings”. You can claim a top-up payment on small donations collected during charitable activities held in a community building, for example a church, a cathedral, a town hall, a mosque, a synagogue or a village hall. Be aware that there are rules around record keeping and the nature of the events in the community building. There is, however, no limit on the number of eligible community buildings that a charity carries out its charitable activities in.

For example: A local animal shelter collected £8,000 in collection boxes placed in shops around town, collected £5,500 in small donations during monthly charitable activities held in a village hall and £3,200 donations collected during charitable activities held every other month in a local church hall. The charity could claim top-up payments of £4,175 on all three collections.

For further advice, please contact Laura Masheder.