Gift Aid FAQ - Individuals
What is Gift Aid?
Gift Aid is a government scheme to encourage individuals and companies to give to charity. Any donation made under Gift Aid will be increased by the government using the tax the donor has already paid on the donation.
Why should I use Gift Aid?
Signing a Gift Aid form means that, without costing you any more, your donation is worth much more to the charity.
How much extra does the charity get?
The government increases your donation by around 28%. So for every £10 you give the charity can claim £2.82 from the government without costing you a penny extra!
Is this really “something for nothing”?
YES! The extra money the government pay to the charity is simply the tax you have paid on your donation to the charity, without a Gift Aid declaration the government would keep this tax.
I am a higher rate tax payer, does the charity get the full 40% extra?
No, the charity receives the equivalent to basic rate tax on all Gift Aid donations. However you can include Gift Aid donations in your self-assessment tax form and you will be credited with the extra tax.
Are there any limits to how much I can give under Gift Aid?
There are no limits (maximum or minimum) that can be given under Gift Aid. There are two restrictions
- You must pay at least as much tax in the year as the charity are able to reclaim (This means that non-UK tax payers can not use Gift Aid).
- There are limits on what you can give if you benefit personally from the charity you are giving to.
Does using Gift Aid commit me to giving to the charity in the future?
No. Unlike previous government schemes Gift Aid can be used for a single one off donation of any size.
Do I need to fill in a Gift Aid form for each donation?
No. A single Gift Aid form can be used to cover all future donations if you wish.
Will Robin Hood Ministries use my address on the Gift Aid form?
We will not add your address to any list or database, for example our mailing list (except as required to administer any aspect of Gift Aid), unless you ask us to. We will not give or sell your address to any third party.
How do I make my donations qualify for Gift Aid?
Simply sign this form* available from Robin Hood Ministries and return it with your donation. (If you are a higher rate tax payer don’t forget to keep a record of your donation so you can include it in your self assessment tax return to claim the extra tax relief)
Where can I get more information from?
The Inland Revenue publish a booklet on “Giving to charity by individuals” , IR65 in the Clubs and Charities series. There is also a lot of useful information on the Inland Revenue Web site: www.inlandrevenue.gov.uk/charities/.
Small print: This tax information is based on our best understanding of the current (August 2003) rules and should not be relied upon to make financial decisions.
Please click here for information about how Gift Aid applies to companies.
