Reclaiming Gift Aid (Notes for Donors)
Gift Aid allows charities to claim back 25% on every donation from individuals who are eligible to claim gift aid, in accordance with the requirements of the Gift Aid Scheme as they apply from time to time. In addition a transitional relief of 3.2% will be repaid to charities (for donations from 6th April 2007 to 5th April 2011). Therefore Gift Aid allows charities to reclaim effectively a total of 28.2%.
All donors, who are UK taxpayers, can make a declaration that makes them eligible for Gift Aid reclaims. To apply for Gift Aid you must pay an amount of Income Tax and/or Capital Gains Tax at least equal to the tax that the charity reclaims on your donation in the appropriate tax year. You can only make a Gift Aid declaration on your own money. You cannot make a declaration on behalf of someone else or on behalf of a company.
When you donate you enter your full name, home address including postcode and confirm you wish for Gift Aid to be reclaimed on your donation. We will pass this information onto HMRC for the purposes of reclaiming tax.
You can make a donation and remain anonymous, but if you remain anonymous you can’t apply for gift aid on your donation, as full details (as detailed above) are required by us to reclaim gift aid.
Any information from which it is possible to personally identify people which is captured (including: donor's full name, address and email address) will be captured in a secure manner, processed and stored at all times in accordance with the Data Protection Act 1998.
Global Angels will comply with any instructions of all donors in respect of their personal data and Global Angels will not pass any such personal data to any third party.
Example: Mr J Smith donates £100 to his friends fundraising. Mr J Smith confirms that he is a UK Tax payer and provides his home address. Mr J Smith’s £100 donation is treated as being made after deduction of basic rate tax at 20%. The gross value of the donation before tax is £125.00 (£100.00 × 100/80), - this is the amount of money you would need to earn to receive £100.00 after tax. Global Angels claim the £25.00 of basic rate tax (£100.00 × 20/80) that the taxpayer is treated as having paid on the gift, effectively an extra 25% on top of the value of the £100.00 donation.
HMRC will pay a further 3.2% transitional relief to Global Angels, i.e. £3.20.
In summary Global Angels will receive £100 from Mr J Smith plus a £28.20 refund from HMRC.
Where a fundraising event has been part or fully funded by Global Angels, donations to these events are eligible for the Gift Aid scheme, subject to the normal requirements of the scheme being satisfied, and that includes the benefit rules. However, as the fundraiser has benefited from the Charity’s funding, donors can’t claim gift aid if they are:
- the wife or husband of the fundraiser
- a relative (brother, sister, ancestor (e.g. mother) or lineal descendant (e.g. grandson) of the fundraiser
- the wife or husband of a relative of the fundraiser
- or a company under the control of the donor or under control of the connected persons.
Frequently these are overseas treks and bike rides to raise funds, however the same principles apply to similar events in the UK.
Full details about the Gift Aid Scheme can be found on HMRC website:
http://www.hmrc.gov.uk/charities/
or call our helpline: 0845 3020203.