Gift Aid small donations scheme

The Gift Aid Small Donations Scheme is a government initiative that allows charities and community amateur sports clubs (CASCs) to claim an extra 25p for every £1 donated by a UK taxpayer.

To be eligible for the scheme, donations must be made by UK taxpayers and must be less than £30 per donor per year. Donations can be made in cash or by credit or debit card. Donations made by other methods of payment such as cheque or bank transfer do not count.

The maximum annual amount of small donations that can be claimed through the GASDS is the lower of £8,000 or 10 times the amount the charity receives in Gift Aid donations – known as the matching rule. The £8,000 limit allows charities and CASCs to claim Gift Aid style top-up payments of up to £2,000 a year.

Usually, to claim gift aid the donor must have paid Income Tax or Capital Gains Tax at least equal to the amount the charity wants to claim and must complete a gift aid declaration. However, under the GASDS charities can claim tax relief on cash donations of £30 or less without a gift aid declaration or even knowing the identity of the donor.

Internet link: HMRC