Gift Aid is a simple way for your charity to increase the value of gifts of money received from UK taxpayers. This factsheet will help you grasp the basics of Gift Aid, how it works, what it’s worth to your organisation and why Gift Aid declarations are so important.
How does Gift Aid work?
When a UK taxpayer gives a gift of money to a charity, they have already paid tax on that money. Because charities are generally exempt from tax, they can claim an amount from HM Revenue & Customs (HMRC) equal to the tax paid on that money by the donor. This repayment from HMRC is known as Gift Aid.