03 August 2020
With charities expected to lose around £4 billion of income due to the COVID-19 pandemic, more than 200 organisations have joined a coalition to petition the Government to increase the rate of gift aid that can be claimed from one quarter to one third. This means that a £100 donation would be worth £133.33 to a charity instead of the existing £125.
The coalition is made up of some of the leading voices in the sector including the Charity Tax Group, Charity Finance Group and charities such as Cancer Research UK and the NSPCC, as well as smaller charities for whom gift aid is often claimed on a larger proportion of their income than bigger charities.
In addition to the increase to the level of gift aid that can be claimed, there is also a proposal to widen access to the Gift Aid Small Donations Scheme (GASDS). The campaign group is proposing that the changes be put in place for two years to allow the sector to recoup some of its lost income.
The Government has initially dismissed the call by the campaign group in June, as it claims less than a fifth of charities claim gift aid. The Charity Tax Group cites that initial resistance from government is not uncommon and that it will continue to lobby.
You can support the campaign on social media using the hashtags #GiftAidRelief and #NeverMoreNeeded. To be added to the list of supporters (currently over 175) please e-mail info@charitytaxgroup.org.uk. Full details of the proposal can be found on the #nevermoreneeded website.
In light of the above, it would be a good time for charities to ensure they are maximising their gift aid claims. Our 2020 Charity and NFP Sector Outlook has a reminder on some of the types of donations that are eligible for gift aid.
Our team is on-hand to advise on your charity’s specific circumstances and we also offer gift aid audits to ensure your records comply with the standards required by HMRC.
For more information, please contact Tracey Moore or your local UHY adviser.
