# Four In Ten Small Charities Yet To Make A Gift Aid Claim

- Link: https://fundraising.co.uk/2006/11/06/four-ten-small-charities-yet-make-gift-aid-claim/
- Published: 2006-11-06T09:39:18+00:00
- Author: Howard Lake

Research unveiled today by the Institute of Fundraising (‘Institute’) shows that
small charities are significantly under-using Gift Aid.

Findings show that 39% – almost four in ten – of the UK’s smallest charities (those
with a voluntary income of less than £100,000) have not made a Gift Aid claim over
the last year. Furthermore, the research found that 71% of these small charities
consider the sums involved in claiming Gift Aid too insignificant to fully utilise
the mechanism, compared to only 23% of larger charities. On average, charities consider
that they are currently missing out on a further 8% in additional income per year
by not making full use of Gift Aid – but, on average, they could be claiming Gift
Aid on a further 40% of donations.

Almost all of the large charities and three-quarters of the small/ medium-sized 
charities surveyed used Gift Aid for some of their fundraising. The proportion of
charities claiming Gift Aid was highest in the South West and South East of England(
at 95% and 92% respectively) and lowest in the North East (where the percentage 
of charities in the region having claimed some Gift Aid in the last financial year
is 63%).

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Religious, international and benevolent funds/ ex-services charities have been found
to have the highest proportion of Gift Aid claims – 100% of those organisations 
surveyed made at least one Gift Aid claim. Environment and animal charities showed
the highest proportion of Gift Aided income, where one half of all voluntary income
had been converted. In contrast, only 73% and 50% of housing and community development,
and rights/ law and advocacy organisations (respectively) had made at least one 
Gift Aid claim last financial year.

The average amount of tax relief reclaimed in the sample on Gift Aided donations
last year was £45,000 per charity, although this ranged from £5,000 – £500,000.

Lee Grant, Tax-Effective Giving Project Manager at the Institute of Fundraising 
commented:

The message is clear – charities continue to underestimate the worth and potential
of Gift Aid. The Institute of Fundraising continues to provide the support charities
have indicated would be helpful in maximising their Gift Aid income – but ultimately
it’s up to individual charities to ensure that they turn their current apathy into
positive action in making full use of this income stream.â€

To read a copy of the summary report ‘Promoting tax-effective giving’, visit www.
institute-of-fundraising.org.uk.

For further information, call 0845 337 3801 or email ta*****@**************************
rg.uk

-ENDS-

MEDIA QUERIES

For further information please contact:

Diana Mackie Tel. 020 7840 1027

Institute of Fundraising email: di****@**************************rg.uk

Out of hours enquiries Tel. 07712 045 308

NOTES TO EDITORS

1. Institute of Fundraising

· TAX-EFFECTIVE GIVING HELPLINE -Call or email the tax-effective giving team (Call:
0845 458 4586 or email: ta*****@**************************rg.uk) with your queries
and to find out what support is available.

· TRAINING COURSES – Sign up for a place on our tax-effective giving training sessions,
call the booking line on 0845 337 3801

· FREE GUIDANCE MATERIALS – Order your free guide to tax-effective giving ‘Making
Giving Go Further’ (available as a guide book or CD).

· WEBSITE – For more information about the tax reliefs available to charities and
how they work, visit www.institute-of-fundraising.org.uk

For more information about the tax reliefs available to charities and how they work,
visit www.institute-of-fundraising.org.uk

2. The research

The report ‘Promoting Tax-effective giving’ surveyed a sample of charities with 
cut-offs of income below £10m and above £100,000 to establish the strengths and 
gaps in the current patterns of tax-effective giving and fundraising.

3500 postal questionnaires were sent out to samples of charities drawn from existing
published lists, and enhanced by the member database of REACH, to ensure smaller
charities were accessed.

Telephone interviews were carried out in April and May 2006, at the same time as
the postal survey. Twenty interviews were carried out with charities, and five with
stakeholders.

Charities were chosen at random from the same sample as that used for the postal
surveys. Stakeholders were chosen from a number of the representative bodies to 
do with tax-effective giving.
