# Over a million donors sign up for Gift Aid on donated goods

- Link: https://fundraising.co.uk/2009/04/08/over-million-donors-sign-gift-aid-donated-goods/
- Published: 2009-04-08T10:01:35+01:00
- Author: Howard Lake

![](https://www.fundraising.co.uk/files/images/news/Charity_shop_clothes_photo_adotjdotsmith_flickr_1239144128.
jpg)

More than one million donors have signed up to help charity shops reclaim the Gift
Aid on the sale of their donated goods, according to charity retail management system
supplier Eproductive. Just 0.1% asked for their money back when notified of the 
amount raised.

Eproductive’s Internet-based EpR system enables Gift Aid reclaims on the sale of
donated goods by storing and recording donors’ details so that they can be informed
of the amount raised once the goods have been sold. Donors must be given the opportunity
to keep their money.

The tool is in use in over 2,100 shops run by Sue Ryder Care, Barnardo’s, Help The
Aged and British Heart Foundation. It is recording over £3.2 million of sales qualifying
for Gift Aid each month. Sue Ryder Care is entering its fourth year of collecting
Gift Aid in this way and is expecting a 35% conversion to Gift Aid this year, generating
more than £2 million additional revenue for the charity.

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Eproductive report that, of 79,000 donors who were sent letters during a 12-week
period detailing the value of their donations, just just 70 (0.1%) asked for their
money back.

Chris Cowls, CEO of Eproductive, said: “Our system simplifies the process for them,
meaning that charity staff can easily collect the essential data on how much Gift
Aid they can claim and from whom. Charity chains of all sizes can benefit from this
opportunity, and we are currently working with 40 clients who have between 4 and
600 shops each.”

www.eproductive.com/epr

Photo: [adotjdotsmith](http://www.flickr.com/photos/gingerblokey/3421006746) on 
Flickr.com

 * **[50 free places available on Institute's first conference on Gift Aid](https://fundraising.co.uk/2009/04/16/50-free-places-available-institute039s-first-conference-gift-aid/)**(
   16 April 2009)
 * **[Barry Gower to speak at UK Fundraising Gift Aid event](https://fundraising.co.uk/2009/04/20/barry-gower-speak-uk-fundraising-gift-aid-event/)**(
   20 April 2009)
 * **[Gift Aid conference bursary applications close today](https://fundraising.co.uk/2009/05/01/gift-aid-conference-bursary-applications-close-today/)**(
   1 May 2009)

## Comments

### By: StephenDElsden

- Link: https://fundraising.co.uk/2009/04/08/over-million-donors-sign-gift-aid-donated-goods/#comment-3585
- Published: 2009-04-09T08:07:24+01:00

This is the first time I’ve heard that Gift Aid can be claimed on donated goods.
Eproductive seem to work for charity shop chains, but does anyone know if any charity
which sells donated goods csn benefit from the Gift Aid reclaim, and if so, how?

### By: admin

- Link: https://fundraising.co.uk/2009/04/08/over-million-donors-sign-gift-aid-donated-goods/#comment-3586
- Published: 2009-04-09T08:40:21+01:00

Yes, it’s been possible to claim Gift Aid on donated goods for a good few years,
provided you establish a clear audit trail of item donated, donor, value, Gift Aid
declaration, and donor’s agreement.

Barry Gower of [Gift Aid specialists GAIN](http://www.gain.me.uk/index2.html) was,
I think, the first to establish this novel use of Gift Aid. He wrote an article 
explaining it in Professional Fundraising magazine in 2005 (I was rereading it just
a week or two ago – I know, my idea of fun).

The focus seems to have been on claiming Gift Aid on donated goods within shops.
Not sure who is using it for other donated goods. Anyone?

### By: ianclark

- Link: https://fundraising.co.uk/2009/04/08/over-million-donors-sign-gift-aid-donated-goods/#comment-3587
- Published: 2009-04-09T10:21:31+01:00

Gift Aid can only be claimed on voluntary gifts of money, not on donated goods. 
So if the donor offers a charity some goods for resale, the charity has to first
sell the goods, and then ask the donor if they want to donate (some of) the proceeds
using Gift Aid.

HMRC have some detailed reglations and advice in section 3.51 (its several pages
long!) at
 [http://www.hmrc.gov.uk/charities/guidance-notes/chapter3/sectionf.htm#gg](http://www.hmrc.gov.uk/charities/guidance-notes/chapter3/sectionf.htm#gg)

I wrote up a simple version of this for churches a couple of years ago (eg church
fetes). There is a fair amount of admin involved in tracking the sale and getting
the donor’s consent, so I usually advise focussing on goods that are likely to be
worth more than say £4, which would get £1 GA tax refund.

There might be some simplification of the admin announced in the forthcoming Budget.

Ian

Ian Clark

### By: admin

- Link: https://fundraising.co.uk/2009/04/08/over-million-donors-sign-gift-aid-donated-goods/#comment-3588
- Published: 2009-04-09T13:43:23+01:00

Thanks Ian. Yes, you’re right – I was being too loose with my vocabulary. The Gift
Aid can only be claimed on the the gift of money, not on the donated goods per se.
It is only when they have been converted into cash ie. sold, that, with the donor’s
consent, the cash value can be converted into a Gift Aid donation.
