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Charities “lose out on £395 million” because donors don’t choose Gift Aid

Research by Direct Debit reveals that many donors are still not giving tax efficiently through Gift Aid when they could.

Direct Debit’s research found that 57% of donations are made spontaneously and are not part of a planned giving, tax-efficient approach. Street collections and sponsored events accounted for much of this type of income.

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Of those surveyed only 24% made charitable donations on a planned or regular basis. Twenty six per cent said they gave to charity what they could afford when they were asked.

Direct Debit is the most popular method of giving regularly to charity, with 53% of those surveyed choosing it. Standing orders were used by 10% and 8% gave by payroll giving. A quarter of those who gave regularly did so by cash or cheque.

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