Guide
Claim Gift Aid on donations
How charities and CASCs can claim Gift Aid to boost donations by 25%, plus use GASDS to claim on small cash and contactless donations without declarations.
Gift Aid lets your charity or Community Amateur Sports Club (CASC) claim an extra 25p for every £1 donated by UK taxpayers. This means a £100 donation becomes £125 at no extra cost to the donor.
The scheme works because the government allows charities to reclaim the basic rate tax that donors have already paid on their donation. Combined with the Gift Aid Small Donations Scheme (GASDS), you can maximise the value of all donations to your organisation.
What Gift Aid is worth
Before you can claim: registration
You must be registered with HMRC before making any Gift Aid claims. This is a separate process from registering with the Charity Commission.
How to register for Gift Aid
- Register your charity with HMRC - Use the Charities Online service to register. You'll need your charity's registration number (if registered with the Charity Commission), governing document, and details of trustees.
- Wait for confirmation - HMRC will verify your charitable status. This typically takes 4-6 weeks but can take longer for complex cases.
- Receive your Charities Online credentials - Once approved, you'll receive login details for the Charities Online service where you'll submit claims.
CASCs: You must first register as a CASC with HMRC using form CASC A1 before you can claim Gift Aid. The registration process can take up to 6 months.
Collecting valid declarations
Before claiming Gift Aid on any donation, you must have a valid Gift Aid declaration from the donor. This confirms they are a UK taxpayer and want Gift Aid to apply to their donations.
What a declaration must include
Types of declarations
Single donation: Covers one specific donation only. Use for one-off gifts.
Enduring declaration: Covers all past, present, and future donations. Most efficient for regular donors. Remains valid until the donor cancels it.
Sponsored events: Participants can collect Gift Aid declarations on behalf of your charity. Use a sponsorship form with the Gift Aid statement included.
Donor eligibility
What you can and cannot claim
Not all payments to your charity qualify for Gift Aid. Understanding the distinction between donations and payments for goods or services is essential.
Donor benefits
Donors can receive small benefits in return for their donation without disqualifying Gift Aid, but these benefits must stay within limits.
Making a Gift Aid claim
Claim methods
Charities Online: The standard method for most charities. Log in to HMRC's Charities Online service to submit claims.
Paper claims: Form ChR1 is available for charities that cannot use the online service, but processing takes longer.
Third-party software: Donor management systems like Salesforce, Donorfy, or Beacon can submit claims directly to HMRC on your behalf.
Claim frequency
You can claim as often as you like. Most charities claim monthly or quarterly. There's no minimum claim amount, but consider the administrative effort involved.
Claim deadlines
Gift Aid Small Donations Scheme (GASDS)
GASDS allows you to claim a Gift Aid-style top-up on small donations where getting a declaration is impractical - such as church collections, street fundraising, or contactless donations.
How GASDS works
Community buildings rule
If your charity operates from community buildings (churches, village halls, community centres), you may be able to claim GASDS on donations collected at each building separately, increasing your total annual GASDS claim.
Each community building can have its own £8,000 eligible donation limit (giving up to £2,000 in claims per building per year), subject to matching requirements.
Connected charities
If your charity is connected to other charities (shares trustees, has common purposes, or is controlled by another charity), the £8,000 GASDS limit is shared across all connected charities.
Record keeping
Proper records are essential. HMRC can audit your Gift Aid claims and may require repayment of incorrectly claimed amounts, plus interest.
Common mistakes to avoid
- Claiming without a valid declaration: Every Gift Aid claim must have a corresponding declaration. No declaration means no claim.
- Exceeding donor benefit limits: If you give donors benefits that exceed the limits, the entire donation becomes ineligible.
- Missing the matching requirement for GASDS: You must claim regular Gift Aid in the same tax year to claim GASDS. If your Gift Aid claims are low, your GASDS claim is limited to 10 times that amount.
- Not checking donor tax status: If a donor no longer pays sufficient UK tax, they must notify you and you must stop claiming on their donations.
- Poor record keeping: You must be able to prove every claim if audited. Keep declarations and donation records organised.
Higher rate taxpayer relief
While your charity claims the basic rate (25%), higher and additional rate taxpayers can claim further personal tax relief on their donations. This doesn't affect your charity's claim but is worth mentioning to donors as it makes giving more attractive.
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Register with HMRC
Apply through Charities Online with your charity registration number, governing document, and trustee details. Allow 4-6 weeks for processing.
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Set up Gift Aid declarations
Create declaration forms for single and enduring donations. Include all required information and the tax explanation statement.
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Train staff and volunteers
Ensure everyone who collects donations understands when to request declarations and how to verify donor eligibility.
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Implement a record-keeping system
Use a database or donor management software to track declarations and link them to donations. Keep records for at least 6 years.
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Submit your first claim
Log in to Charities Online and submit your claim. Claims are typically processed within 4 weeks.
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Register for GASDS
Once you've made Gift Aid claims for 2 complete tax years without penalty, you can start claiming GASDS on small donations.