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Gift Aid & The Higher Rate Taxpayer

Posted on 30 September 2009 at 1:29 pm
Viewing 4 posts - 1 through 4 (of 4 total)
  • 30 September 2009 at 1:29 pm #3377

    Prior to the start of the Institute of Fundraising campaign, how many of us really bothered about the higher rate taxpayer and Gift Aid?

    Can anyone point to some examples where their charity work has had some success?

    Do we partner with accountants, send out self assessment forms at the tax return dates, or even identify who amongst our donors are higher rate taxpayers?

    I have never been asked to identify myself as a higher rate taxpayer when donating to a charity in the past. Has anyone else?

    Thoughts appreciated.

    Jase

    1 October 2009 at 1:50 pm #11052

    Hi, Jase

    To date, the fact that a donor pays higher rate tax has been of interest only to the donor and their accountant – there’s a modest tax benefit to be had.

    The point of the IoF campaign is to get that modest benefit for the Charity, where it is likely to be more appreciated – the difference between 28% on a donation and 40% on a donation could be quite significant.

    The point is, of course, that if this comes to pass, you will then be asked every time you complete a Gift Aid declaration whether you pay the higher rate, because we WILL be interested if we can claim an extra 12%!

    Go to http://petitions.number10.gov.uk/giftaidhrt and sign the petition – if nothing else, it will irritate the Treasury 🙂

    Cheers

    Gerry

    Gerry Beldon FInstF
    Director, 26-01 CIC
    http://www.26-01.com

    6 October 2009 at 12:16 pm #11057

    Thanks for your thoughts Gerry.

    It would appear that HMRC & The Institute of Fundraising disagree on their figures.

    http://www.thirdsector.co.uk/channels/Finance/Article/943246/Wrangle-calculations-Gift-Aid/

    It also occurs to me that there is such a fundraising model out there already which accounts for the higher rate taxpayer, and their tax relief, with the charity having to do very little admin….

    Payroll Giving

    Jason Elton
    http://www.charitygolfdays.wordpress.com

    6 October 2009 at 9:15 pm #11059

    Contrary to what you might expect it would not be too difficult to screen your donors to identify the majority of higher rate tax payers.

    Using the WealthEngine comprehensive screening service you can screen all your donors in your database at one time or by using FindWealth Online a web-based identification tool you can have immediate results on individuals and companies whenever you receive donations.

    So not only can you identify those higher tax payers but it will allow organisations to identify wealth and encourage them to cultivate high-end donor relationships.

    If you would like more information on WealthEngine please do not hesitate to contact me @dmacs.co.uk">nick@dmacs.co.uk

    Nick Diplock
    DMACS Ltd

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