Charities losing money – When to claim Gift Aid?

Charities are missing out on up to £600m as a third of donations do not add Gift Aid when they could have done. Read on to find out more.


As a UK tax payer, there are benefits of donating to registered charities and community amateur sports clubs (CASCs). For every £1 you donate, the charity can claim an extra 25 pence from the government, effectively increasing the donation by 25%.

Charities losing millions

Based on recent HMRC data, charities are missing out on an extra £600m in funding where because a third of donations do not add Gift Aid when they could have done so. Crucially, under Gift Aid the government tops up a taxpayers donation by 20% when made under Gift Aid. This can be invaluable for a charity in aiding people who are in desperate need. There is likely to be a misconception amongst the public as to when they can select the Gift Aid option or of course people may forget to do so. The statistics highlight the importance of knowing when to select the Gift Aid option and also the importance of remembering to do so. Some charities can only be added, if forgotten, within 12 hours of the donation being made.

When to make a Gift Aid Claim?

  • A taxpayer should make a gift aid declaration – this is something a charity usually provides by way of getting you to complete a form
  • The donations will qualify for gift aid as long as they are not more than 4 times what the taxpayer has paid in tax in that tax year (the tax may have been in the form of income tax or capital gains tax)

AJN Accountants are specialists in helping contractors, freelancers and small businesses to save tax and time.

Please contact us for more information:

E: info@ajnaccountants.co.uk
T: 020 3866 8951

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