Promoting Gift Aid
Gift Aid offers a simple way to increase the value of a gift of money to a
UK charity or Community Amateur Sports Club (CASC).
Gift Aid enables sums of money given to charity by individual UK taxpayers
to be treated as if they were net of basic rate income tax. The charity can
then claim repayment equivalent to the basic rate of tax from HM Revenue
and Customs. Over time Gift Aid has increased in size and scope to become
worth £828 million to UK charities in 2006-07.
Budget 2007 announced that the Government would undertake a consultation to
identify measures to increase take up of Gift Aid. The consultation,
launched in June 2007 by the Minister for the Third Sector and the Chief
Secretary to the Treasury, looked at a diverse range of issues and a
summary of responses was published by HM Treasury in December 2007.
Responding to the consultation, Budget 2008 set out a series of measures to
boost Gift Aid. Further details of the measures are available at
the HM Treasury website[external
website].
Further information on Gift Aid can be found on the Direct Gov
site [external website].
Umbrella Charities
The consultation uncovered a scheme operated through local infrastructure
organisations such as Council for Voluntary Service (CVS). This scheme
allows local community and voluntary groups established with a charitable
purpose for public benefit to access the benefit of Gift Aid on donations
from supporters, when the donations are directed through local umbrella
organisations that are registered charities. The Government supports
this scheme, which helps Gift Aid to reach local charitable fundraising
activities. The Government has published guidance on how to operate such a
scheme. This can be accessed below or through the Gift Aid
Gateway [external website].
