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Gift Aid & Gift Aid Small Donations


Introduction

Church of England parishes collectively receive nearly £90 million in Gift Aid tax rebates each year, around £40 million more than the amount collected in the year 2000, and sufficient to fund 1,600 stipendiary clergy! This is a great tribute to the hard work of volunteers running Gift Aid programmes in parishes throughout the country, as well as a testimony to the value of the Gift Aid scheme. It’s important to get it right, and this page seeks to help you do that.

The Gift Aid Small Donations Scheme (GASDS) allows parishes to claim a Gift Aid style repayment to be received on small cash and contactless donations of £30 or less (from 6 April 2019) up to a threshold of £8,000 of donated income per tax year per church. (The £8,000 threshold applies from the 2016/17 tax year – the limit for prior years was £5,000).  Just keep in mind that the maximum amount of GASDS top-up a PCC can claim is 10 times the total amount of Gift Aid donations claimed by the PCC in that tax year.

Within our Diocese, parishes should be able to benefit from Gift Aid claims and GASDS top-up payments of at least £1 million a year.

Top tip

One of the most important things to do each year is to remind your donors to check that they are still taxpayers, and notify you if they are no longer paying sufficient income and/or capital gains tax – the personal allowance has risen in recent years, taking a number of people on lower incomes out of the tax bracket. You can include a request for confirmation of a donor's latest tax status, as part of your annual ‘thank you’ letter to all donors.

Something useful

Updated for 2017, this handy Gift Aid checklist is a quick and simple tool which all churches should use: www.parishresources.org.uk/wp-content/uploads/GAChecklist2017.pdf

Your full toolkit

Parish Resources – Gift Aid: www.parishresources.org.uk/giftaid

Parish Resources – Gift Aid Small Donations Scheme: www.parishresources.org.uk/giftaid/smalldonations

HMRC for charities: www.gov.uk/government/organisations/hm-revenue-customs/contact/charities-and-community-amateur-sports-clubs-cascs

Further support

Please contact the finance team

Contact the diocesan Finance Team here.