Under previous HMRC instruction, thousands of charities had Gift Aid claims withheld because messages accompanying individual donations included the names of more than one family member. HMRC has now agreed to permit Gift Aid claims for this type of donation.
While the rules state that that donors must only claim Gift Aid when donating their own money when using social giving opportunities, they also now include the following:
“3.44.6 Some social giving accounts allow a donor to leave a supportive message for a fundraiser participating in a sponsored event, or a dedication message in remembrance of a loved one. It is okay to extend such messages beyond the donor as long as the donation is still of the donors own money.”
JustGiving has now received the first of two expected payments of Gift Aid from HMRC, affecting donations made between November 2015 and the present, which comply with this guidance.
The following actions took place on 22nd July:
- Charities affected received reclaimed Gift Aid funds into their bank accounts
- Reports relating to these funds became available in the relevant JustGiving charity accounts, providing a full breakdown of the funds received
- Donors who have been affected will see Gift Aid confirmations visible on pages, alongside their donations. (Where donors opted to hide donation amounts, Gift Aid will not be shown)
The delivery of the second tranche of Gift Aid funds will be communicated to charities in the same way, once it has been received by JustGiving from HMRC.
In line with the guidelines, JustGiving has also agreed to include supplementary questions within the Gift Aid declaration process to help donors make accurate Gift Aid declarations and minimise the risk of error.
An HMRC spokesperson commented:
“Nothing has changed, our position has always been that Gift Aid can be claimed when an individual donor, who pays tax in the UK, makes a donation, even if additional names are added in a supporting message.”
“However, where gifts are made by groups of people, such as work collections or large groups of friends, Gift Aid is not due and should not be claimed.”
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