Getting to grips with Gift Aid
The Diocesan Board of Finance has issued new guidelines to help LMAs make the most of their fundraising.
Gift Aid is a UK government scheme that enables charities and Charitable Incorporated Organisations (CIOs) to reclaim the tax paid on people’s donations. Claiming it can increase the value of what is given by 25%.
There are three ways in which LMAs and churches can take advantage of the scheme:
- Gift Aid - to achieve this the donor must be an Income or Capital Gains taxpayer and have signed a Gift Aid Declaration. The Church/LMA may then claim back the tax on their donation(s). This includes one-off donations and regular giving. There must also be proper records and audit trails.
The Board recommends all LMAs and churches ensure they
(i) operate an effective Gift Aid Scheme;
(ii) ensure their claims are up to date . Claims can be backdated for up to four years.
- GASDS (Gift Aid Small Donations Scheme) – for donations up to £30 each. Suitable for e.g. loose plate collections, cash and contactless donations only. This scheme is not linked to the amount of tax a donor has paid.
- Gift Direct – This is for regular giving by Direct Debit and is administered by the Representative Body [RB] of the Church in Wales. The donation goes to the church to which it’s donated, the RB claims the Gift Aid and pays this directly to the church. The donor may amend or cancel their direct debit at any time. The benefit to the Church is less administration as the Gift Aid is claimed regularly by the RB. Full details & forms are available on the Church in Wales website.
The Board recommends that all LMAs check their records and, with their constituent churches, confirm which are, and which are not, up to date with their Gift Aid claims and notify the diocesan Project Support Officer, Clare Walker.
New CIOs
Following registration, new CIOs should register for Gift Aid; new declarations and weekly giving envelopes will be required. Claims for constituent churches will be submitted by the LMA and the recovered Gift Aid returned to individual churches.
LMAs should appoint a Gift Aid Secretary to process claims. These will need to make themselves aware of the rules and procedures for claiming. The Board can help arrange training materials and guidance to them if it knows who they are. Names and email addresses should be sent to clarewalker@churchinwales.org.uk
Full Gift Aid guidance is available on the UK Government website at https://www.gov.uk/donating-to-charity/gift-aid