Gift Aid FAQ - Businesses
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 treated as a tax deductible expense. In other words it is paid from pre-tax profits.
Why should I use Gift Aid?
If you do not sign a Gift Aid form, any donations must come from profits AFTER you have paid tax on them. Using a Gift Aid form reduces your tax bill.
Can the charity claim extra tax relief on money given by a company under Gift Aid?
No. The purpose of Gift Aid is to reclaim tax paid on donations. As company donations under Gift Aid come from profits before any tax has been paid, there is none available for the charity to reclaim.
Are there any limits to how much a company can give?
There is no limit on how much a company can give as long as it does not receive any benefit or trade from the charity. There are rules on how much can be given to any charity that buys goods or pays for services from any company.
Does using Gift Aid commit the company 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.
What evidence do I need of the donation in order for it to get tax relief on it?
The same level of evidence as for other items in your tax return will be sufficient. For example an entry in a bank statement or a receipt from the charity.
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.
What about gifts other than money – for example some of the companies stock?
Companies can give stock or equipment tax-efficiently, they can even second staff on a temporary basis.
Where can I get more information from?
The Inland Revenue publish a booklet on “Giving to charity by businesses” , IR64 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 individuals.
