# Gift Aid reclaim period reduction is just months away

- Link: https://fundraising.co.uk/2009/11/18/gift-aid-reclaim-period-reduction-just-months-away/
- Published: 2009-11-18T10:38:08+00:00
- Author: Howard Lake

It is common knowledge that Gift Aid has regrettably not been the success hoped 
for when the new version was introduced in 2000 by the then Chancellor, Gordon Brown
MP. The rate of recovery is estimated at less than 30% with some £800 million unclaimed
each year.

 

Because charities can back claim for six years, this means that they are losing 
out on nearly £5 billion. There is a constant appeal to the government to make the
process easier but the reality is that this will take time, and with each year that
passes another £800 million is foregone.

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This is now complicated by the fact that, with effect from 1 April 2010, the period
in which Gift Aid can be claimed reduces from six years to four. It is not sure 
how much of the lost Gift Aid is due to it simply not being processed, but even 
if this is only 10%, it means that at a stroke around £160 million will be lost 
to charities.

 

Bad as all of this is, what is possibly more distressing aspect is that there seems
to be so little awareness of this, both in the charity sector and outside of it.
Although I have not carried out detailed research, I have been shocked at how many
accountants, lawyers and other financial advisors to charities I have spoken to 
are completely oblivious of this.

 

Eric Grounds, director of fundraising at Sue Ryder Care told Third Sector (27 April
2009) that a review carried out when he joined Sue Ryder Care had revealed more 
than £700,000 in unclaimed Gift Aid, _much of it dating back more than four years_.

 

I believe that this is a very disturbing state of affairs, especially since the 
cut-off date is less than five months away. If charities are going to benefit from
these additional funds, then they need to take action immediately.

 

If a charity feels sufficiently competent they can then undertake this claim themselves.
Otherwise they can ask their accountant, tax consultant or other financial advisor
to assist with this.

 

It is not often that there is the opportunity to get free money. It is even less
frequent to get it from the Tax Man. With all the brouhaha flying about regarding
simplification of Gift Aid regulations, ‘opt-out’ vs. ‘opt-in’, confusion over Higher
Rate Taxpayer relief and so on, it seems that the best thing charities can do is
keep their heads down and simply focus on getting as much of the tax back as possible,
before they lose it.

 

**Barry Gower is MD of Gift Aid recovery specialists [GAIN](http://www.gain.me.uk/inputname.php).
He offers a no charge and no obligation service to analyse charities’ data and provide
an indication of the Gift Aid they are likely to recover.**

 

 * **[Fundraising, Gift Aid and the higher rate taxpayer](https://fundraising.co.uk/2010/02/04/fundraising-gift-aid-and-higher-rate-taxpayer/)**(
   4 February 2010)
 * **[Institute calls for one more year of Gift Aid transitional relief](https://fundraising.co.uk/2010/02/05/institute-calls-one-more-year-gift-aid-transitional-relief/)**(
   5 February 2010)
 * **[Gift Aid 'inefficient and too expensive' says Nick Hurd](https://fundraising.co.uk/2010/02/05/gift-aid-039inefficient-and-too-expensive039-says-nick-hurd/)**(
   5 February 2010)