Gift Aid Means More Money For Charities When You Give

If you want to make a cash donation direct to a particular charity, then Gift Aid is one of the easiest ways to make your donation tax efficient. The charity you are supporting reclaims the basic rate tax from the Inland Revenue. There's no additional expense to you and the process is simple - all you have to do is make a Gift Aid delcaration.

How Gift Aid Works

Charities take your donation (which is money you've already paid tax on), and then reclaim tax on its 'gross' equivalent (its value before tax was deducted) at the basic rate of 22 per cent.

In practice, this means that if you give £10 to charity/CASC using Gift Aid, that gift is worth £12.82 to the charity. This is because 22 per cent of £12.82 is £2.82 - your £10 being the difference.

The Gift Aid scheme is only for monetary gifts and there are rules limiting the value of benefits you can receive in return.

For more information go to: www.hmrc.gov.uk/charities/gift-aid.htm