Ten ways to optimise Gift Aid and maximise donations

Without a valid Gift Aid declaration, charities are not able to claim Gift Aid. To maximise uptake, ensure Gift Aid declarations are accessible and completed by donors at the time of donation. You can simplify this process by incorporating the declaration into online donation forms and attaching it to sponsorship forms.

Many supporters are unaware of how Gift Aid works or how much more their donation could be worth by engaging with the scheme. Charities could provide clear, and easy-to-understand information about the scheme, and promote Gift Aid through their website, social media, newsletters and fundraising materials. A well-informed donor is more likely to opt in.

Use a CRM system for donations to automate and streamline the Gift Aid claim process and manage Gift Aid declarations efficiently. If you use donor platforms or intermediaries, remember that Gift Aid can still be claimed on the full donation amount even if the platform takes a fee. These tools reduce the administrative burden and help track donations to ensure all eligible donations are claimed.

Conduct regular reviews of your donation records to identify any missed Gift Aid opportunities. Reviewing past donations could uncover donations previously unclaimed, which could boost the charity’s overall income.

Charities can claim Gift Aid up to four years from the end of the financial period in which the donation was received. It is important to make sure information included in claims is reviewed and updated to ensure it is accurate, including no work addresses, or joint names. HMRC can disqualify the whole claim even if there are only a few errors. Regular reviews and thorough record-keeping can help identify missed opportunities.

Social media is a powerful tool for raising awareness and encouraging donations.

Share updates about campaigns, success stories, and the impact of donations to inspire supporters. By raising awareness and highlighting the benefits of Gift Aid charities can encourage more donors to opt-in, increase Gift Aid claims and boost overall fundraising efforts. 

Ensure your staff and volunteers involved in finance and fundraising teams understand the Gift Aid rules and processes.

A well-informed team can manage the declarations and claims, reducing the risk of missed donations or claims. Regular training sessions can keep staff and volunteers up to date.

Charitable donations can also serve as an effective tax planning tool for high earners; where it allows them to claim additional tax relief as well as benefitting the charity. Promoting this benefit, could encourage larger and more regular donations from high earners, which would result in an increase in Gift Aid claims for charities.

The GASDS allows charities to claim Gift Aid on small cash and contactless donations of £30 or less, without needing a declaration. This simplifies the process, and enables eligible charities to claim up to £2,000 annually through the scheme, making it a valuable addition to your Gift Aid strategy.

Read more on GASDS

It is important to ensure you remain compliant with Gift Aid regulations. Charities should regularly review their processes and update them as required, in order to stay in line with HMRC guidelines and changes in regulation.

You can keep up to date with these changes, by signing up to our social purpose and non profit mailing list.

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We understand Gift Aid can be complex. Our Gift Aid specialists are here to help you clarify queries or complications of the scheme, identify potential income streams where there are Gift Aid opportunities and ensure your charity is making the most of every eligible donation.