Gift Aid

Localgiving.com will process 28.2% Gift Aid matching on donations. Gift Aid is a way for charities to increase the value of donations from UK taxpayers by claiming back the basic rate tax paid by the donor. Localgiving reclaims Gift Aid through Community Foundations on behalf of a particular local charitable organisation.

The Charity Commission has given its approval and encouragement to this process.

What is Gift Aid?

Gift Aid is tax relief on money donated to UK charities. This is made possible by a government initiative that allows charitable organisations to claim back the basic tax rate paid by UK donors. It can increase the value of donations by a quarter at no extra cost to the donor. Gift Aid is worth nearly £1 billion a year to charities and their donors.

Gift Aid allows charities to reclaim the 20% basic tax rate plus a separate government supplement of three pence on every pound (until April 5, 2011) for a total of 28.2% on every donation. This means that for every £1 donated, HMRC will provide an additional £0.282 supplement on the donation. Please see an example of how this affects your donation by clicking here.

Gift Aid rules

To qualify for Gift Aid reclaims, a donor must:

• Be a registered UK tax payer.
• Donate as an individual and not on behalf of an organisation, a group of individuals or even on behalf of your family.
• Pay an amount of income tax and/or capital gains tax equal to (or greater than) the tax that will be reclaimed on any donations during the current tax year.
• Confirm that the donation is for the general use of the charity and will not in any way directly benefit a family member or relative.
• Provide personal details for your Gift Aid declaration

To see the HMRC's page about Gift Aid please click on the link:
http://www.hmrc.gov.uk/charities/gift-aid.htm