Many charities still missing out on potential Gift Aid claims, research shows
Melanie May | 3 October 2024 | News
More could be done to support charities in maximising Gift Aid, with many still missing out on potential claims, according to a report by Charity Finance Group (CFG), released today on Gift Aid Awareness Day 2024.
Breaking down the barriers shares the views of 100 charity leaders on their experience of the Gift Aid scheme, and reveals that 90% of those surveyed had registered to claim Gift Aid but that 20% found claiming it difficult, or very difficult.
Every year it’s estimated that charities miss out on around £560 million in Gift Aid, and the sector is urging government to automate the Gift Aid process through The Future of Gift Aid project. This is a cross-sector project, led by CTG (Charity Tax Group), that advocates a move towards an automated Gift Aid system, which it’s estimated would help to unlock more than £500mn of Gift Aid for UK charities each year.
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More key findings:
- Registration and claiming barriers
Some charities find the Gift Aid claims process to be complex and time-consuming. - Lack of awareness
There is a need to increase awareness among the general public about Gift Aid. In addition, charity awareness of the Gift Small Donations Scheme (GASDS) could be increased. - Operational challenges
Charities face administration challenges and some of the more complex tax rules can be difficult to grasp, leading to missed claims. Some charities are missing out on Gift Aid income due to lack of resources and support.
The report makes several recommendations:
1. The Future of Gift Aid: CFG is reiterating the charity sector’s ‘ask’ for the government to progress The Future of Gift Aid project.
2. Simplified registration process: streamline and improve the Gift Aid registration and claims process which many charities can find fiddly and time-consuming.
3. Boost the Gift Aid Small Donations Scheme (GASDS): raise the limit of the GASDS amount from £30 to encourage take-up and raise more funds.
4. Enhanced awareness campaigns: launch targeted campaigns to educate both donors and charities about Gift Aid and GASDS.
5. Increased support and training: provide more comprehensive training and support resources to help charities maximise Gift Aid.
6. Technological solutions: continue to explore the digitisation and automation of Gift Aid processes.
Dionne Sturdy-Clow, Gift Aid Project Officer at CFG, commented:
“For UK charities small and large, every pound really does count. Maximising income is even more vital in 2024, with the cost of living crisis continuing to impact charities. Many are seeing their income reduce but demand on their services increase.”
“By ticking the box and applying Gift Aid to donations, donors are making a tangible difference to the lives of countless people. And it doesn’t cost them a penny extra – it’s money from the government!
“CFG’s Gift Aid Awareness Day campaign is one among several that aims to help close the Gift Aid gap. We know that raising awareness is a year-round endeavour.
“We look forward to continuing our work with our partners and members to ensure charities can maximise Gift Aid and increase their impact for the people and communities they work with.”
About Melanie May
Melanie May is a journalist and copywriter specialising in writing both for and about the charity and marketing services sectors since 2001. She can be reached via thepurplepim.com.