What is Gift Aid?

When you make a donation to a charitable cause like Trust Links, you’ll often see the option to opt in for Gift Aid. But what is Gift Aid? In this article we’ll explain what it is, where it goes, and how it works! By the end of the article you’ll understand how, and if, you can be giving charities an extra helping hand!

Gift Aid is a scheme available to charities, enabling them to claim extra money from HMRC when certain donations are made. It is also available to Community Amateur Sports Clubs, also known as CASC’s.

How does Gift Aid work?

As long as the donor is a UK tax payer, has paid the basic rate of tax, and makes the donation from their own money, charities can claim an extra 25p for every £1 that is donated. It doesn’t sound like much, but in the grander scheme of things, it really can make a difference!

For example, if you made a £100 donation to the Growing Together project, we will receive £125. That’s an extra £25 to our life-changing mental health projects at no additional expense to you. Overall, you’ll be increasing your donation valueby 25%, helping you gift more to causes close to your heart.

For charities like Trust Links, an extra £25 can make quite an impact. For example, £25 could provide a member with a project worker for 2 hour, or it could provide 25 seed packets to our therapeutic gardens!

Who pays for it?

When you donate, Gift Aid enables charities to claim back the basic rate tax you have paid on the amount of the donation from HMRC.

We know it can feel like a bit of a minefield, so if you’re unsure if you’re eligible, or to find out more details, visit the HMRC pages here.