The Government has issued a new announcement encouraging all businesses to “tick the box” to declare Gift Aid on their donations.
The call comes after research showing that charities are losing hundreds of millions of pounds a year by not making the Gift Aid scheme more readily available.
When taxpayers donate using the Gift Aid scheme, charities and community amateur sports clubs (CASCs) can claim an extra 25p for every £1 they give – and it won’t cost donators any extra.
Exchequer Secretary to the Treasury, Robert Jenrick MP, said: “The UK has thousands of brilliant charities, all working hard to make people’s lives better. Through Gift Aid, we are already giving charities an extra £1.3 billion of funding so they can continue their important work.
“We know how crucial this funding is. This is why we’ve just written to 50,000 charities to tell them about the Gift Aid Small Donations Scheme, which makes it even easier for charities to claim a 25 per cent top-up on their donations.”
HM Revenue & Customs (HMRC) research shows that a third of eligible donations to the UK’s 200,000 charities did not add Gift Aid when they could have done, meaning charities are losing out on a potential £600 million a year.
For help and advice setting up Gift Aid, please contact a member of our specialist charity team.