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Thread: Gift Aid

  1. #1
    Master
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    Gift Aid

    As the forum has had a few charity raffles and sales in addition to the on going fundraiser, has anyone ever had or heard of the gift aid status of their fundraising effort of donation questioned? Just wondered if this ever gets checked as strictly speaking a lot of donations don't qualify.

  2. #2
    No, donations in return for a raffle ticket aren’t eligible.

  3. #3
    Master jukeboxs's Avatar
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    I definitely agree that you can't use Gift Aid if you receive anything in return (including a raffle ticket). I don't request Gift Aid where I'm receiving a raffle ticket. The responsibility lies with the individual donating. I did notice that there were many donations with Gift Aid applied, but that's their shout.

  4. #4
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    In reality, if fundraising donations are made directly to a registered charity, then government officials tend not to intervene. In any event, political bad press aside, the cost of investigating and establishing erroneous claims would far outweigh the return.
    Last edited by Suds; 28th January 2022 at 12:46.

  5. #5
    Master Christian's Avatar
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    I didn't realise that a higher or additional rate tax payer could also claim back the additional income tax on the gross value of the gift...so for a higher rate tax payer, a charity could receive £125 at a cost to the individual of £75.

  6. #6
    Master
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    Quote Originally Posted by Christian View Post
    I didn't realise that a higher or additional rate tax payer could also claim back the additional income tax on the gross value of the gift...so for a higher rate tax payer, a charity could receive £125 at a cost to the individual of £75.
    Correct, if a higher rate tax payer donated £100 of their own money, the above applies. Charity receives £125 and costs the person donating £75.

    However as above, on raffles - gift aid should not be clicked.

  7. #7
    Master
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    Quote Originally Posted by Suds View Post
    In reality, if fundraising donations are made directly to a registered charity, then government officials tend not to intervene. In any event, political bad press aside, the cost of investigating and establishing erroneous claims would far outweigh the return.
    Yes I'm sure it isn't worth their time. I've just noticed several times especially on the TZ fundraiser gift aid is claimed and the comment is something like '£50 paid for the watch' and I wondered if this would ever cause an issue for the charity, fundraiser or donator. Its quite easy to be a little more subtle but i think some people aren't even aware of the rules.

  8. #8
    Master Christian's Avatar
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    Quote Originally Posted by Rob s View Post
    Yes I'm sure it isn't worth their time. I've just noticed several times especially on the TZ fundraiser gift aid is claimed and the comment is something like '£50 paid for the watch' and I wondered if this would ever cause an issue for the charity, fundraiser or donator. Its quite easy to be a little more subtle but i think some people aren't even aware of the rules.
    From my reading, it is the donors declaration...so were it ever to be chased up, the donor carries the can, not the charity.

  9. #9
    Craftsman
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    I didn’t add Gift Aid because a raffle is not eligible for this tax break.

  10. #10
    Craftsman Kevin's Avatar
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    Quote Originally Posted by Suds View Post
    In reality, if fundraising donations are made directly to a registered charity, then government officials tend not to intervene. In any event, political bad press aside, the cost of investigating and establishing erroneous claims would far outweigh the return.
    Charities get audited on Gift Aid by HMRC.

    There is plenty of fraud out there, from the ticking the box when you are not a tax payer fraud (You are personally liable for this not the charity) to people who set up fake charities with the express intention of fraudulently claiming Gift Aid

    https://tfn.scot/news/twins-get-10-y...-gift-aid-scam

    Gift Aid is a massive source of income for charities it is certainly not 'too small to worry about

    https://www.civilsociety.co.uk/news/...-pandemic.html
    Last edited by Kevin; 28th January 2022 at 20:44.

  11. #11
    Craftsman Kevin's Avatar
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    Quote Originally Posted by Christian View Post
    From my reading, it is the donors declaration...so were it ever to be chased up, the donor carries the can, not the charity.
    This is correct.
    Gift Aid declarations are enduring documents so if your tax status changes it is your responsibility to tell the charity to stop claiming

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