GAIN to help charities secure Gift Aid on auctions
Howard Lake | 14 June 2005 | News
Normally the rules of Gift Aid do not allow income from auctions to qualify, but Gift Aid recovery specialists GAIN have established an Inland Revenue-approved method of claiming Gift Aid on auctions.
GAIN, the Gift Aid Recovery and Consultancy arm of ChariTax Limited, has negotiated a special arrangement with Inland Revenue whereby a charity can benefit from Gift Aid at an auction. Of course, for Inland Revenue to allow this payment they need to be sure that the operation stays within the rules of Gift Aid. So GAIN is promoting its services to help charities achieve this.
“We can guarantee complete compliance with the procedures and regulations as agreed with Inland Revenue as well as maintaining a complete record of all stages of the transaction” said GAIN’s Barry Gower. “Because of our relationship with Inland Revenue we have been able to structure this arrangement to achieve the dual objectives of compliance with Inland Revenue requirements and removal of hassle for the donors.”
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Charities who wish GAIN to recover Gift Aid on auctions sign a contract with GAIN appointing it as the Gift Aid co-ordinator for the fundraising event. The company then works with the charity’s event organisers to ensure that the event is managed and run in a manner which ensures that the maximum Gift Aid is collected on the auction.
Their services include the provision of the Gift Aid declaration in the correct format, recording and collection of this completed document from the supporters, liaison with the auctioneer/MC to ensure that the auction is conducted according to Inland Revenue requirements and that appropriate announcements are made to the bidders, and provision of a statement of account or invoice (Auction Sale Confirmation) to the bidder detailing his/her bid.
GAIN acts as the nominee for processing the Gift Aid claim, so it will handle the submission and acceptance of the R68 and R68(2000) forms.
The company only charges on a success or no-win no-fee basis: where it has secured Gift Aid income it charges 25% of the additional Gift Aid recovered, which equates to 5.5% of the total gross donation. There is also a fixed setup charge of £150.00, which is independent of the Gift Aid recovered.
About Howard Lake
Howard Lake is consultant editor of UK Fundraising. He founded the site in 1994 and successfully sold it in 2022. As director of Giving X Ltd he is exploring growing giving on a massive scale.
He is the founder of Fundraising Camp and co-founder of GoodJobs.