Gift Aid explained
Fundraisers collecting UK donations should keep Gift Aid visible and correctly captured so eligible donations are worth 25% more to the charity.
What Gift Aid is
Gift Aid is a UK tax relief scheme. When a UK taxpayer donates to a registered charity and opts in, the charity can reclaim basic-rate tax from HMRC. The donor does not pay more.
The charity manages the reclaim. Your role is to make the Gift Aid option clear.
What it adds up to
- £200 in donations → £250 with Gift Aid (£50 extra).
- £500 in donations → £625 with Gift Aid (£125 extra).
- A team of 10 each raising £300 → £3,750 instead of £3,000 (£750 extra).
This is reclaimed tax, not extra cost to donors.
Who qualifies
Not every donation qualifies. The donor must be a UK taxpayer who has paid enough income tax or capital gains tax in that tax year to cover the Gift Aid reclaimed. The donation must be personal money and not payment for goods, services or raffle entries.
If a donor is unsure, leave Gift Aid unticked. Incorrect declarations can create a personal tax liability.
Paper sponsorship forms
Paper forms must capture full name, home address, postcode and UK taxpayer declaration for Gift Aid eligibility. Download forms from sponsorship forms.
The most common failure is incomplete donor details. Missing surname or postcode usually means Gift Aid cannot be claimed.
Online fundraising pages
Online platforms usually handle Gift Aid declarations in the donation flow and pass the data to the charity.
Use one platform link consistently across messages so donations and Gift Aid declarations are not split between pages.
Common mistakes
- Not mentioning Gift Aid early. Donors are more likely to opt in when prompted.
- Incomplete paper forms. Missing surname or postcode is a common rejection reason.
- Assuming all donations qualify. Company donations, ticket purchases and raffle entries do not qualify.
Next steps
Fundraising resources
Use Gift Aid alongside your fundraising target and workplace giving to boost your total.