How to maximise Gift Aid

Did you know that charities in the UK lose out on hundreds of millions of pounds every year on Gift Aid? Or that almost a quarter of eligible donors don’t take advantage of it?

That’s a whole lot of free money left on the table.

With inflation and the cost-of-living at an all-time high, every penny counts. But what can you do to ensure you’re maximising Gift Aid donations?

Before we tell you, here’s a quick primer.

Gift Aid is a government scheme that enables registered charities to reclaim income tax from the HRMC on donations made by UK taxpayers.

For a basic-rate taxpayer, this adds around 25% to the value of a gift. So, a £10 donation processed with Gift Aid becomes £12.50.

Simples.

Now you know what Gift Aid is, here are four things you can do to make the most of it.

1.     Train your staff

There are lots of rules and regs around Gift Aid. So, if you’re introducing the scheme to your organisation, staff and volunteers need to understand how it works.

To ensure everyone is singing from the same hymn sheet, organise a group training session.

If budget is an issue, there are loads of free resources online, such as this ‘Gift Aid - where to start‘ webinar.

If you need something more comprehensive, you can bring in the experts.

GAIN Gift Aid Consultancy run bespoke training sessions for charities.

2.     Educate your donors

Your staff may know about Gift Aid, but your donors may not. So, wherever you ask for donations, (your website, social media pages, emails, or direct mail campaigns), include a brief explanation of what Gift Aid is and how it’ll benefit the charity.

You can download free graphics and resources on the Charities Aid Foundation website.

3.     Ask in the right way

When broaching the subject of Gift Aid with donors, don’t lead with ‘are you a UK taxpayer?’. Some people may find it invasive and put their defences up. Instead, ask if they’d ‘like to help the charity make an extra 25%, at no additional cost’. You’ll get a much better response rate.

4.     Claim tax relief for previous year

If you forget to claim tax relief, or didn’t know you could, it’s not the end of the world. As long as you claim within four years of the end of the financial period you received the donations, HMRC will pay out.

Final Word

Maximising Gift Aid means more money for your cause, at no extra cost to your donors. It’s a win-win.

Looking for a Gift Aid-savvy fundraiser? We can help. Give us a call on 0203 750 3111 or email info@bamboofundraising.co.uk to find out how.