If you’ve ever donated to charity or to a friend’s fundraising page, you’ll probably have been asked whether you would like to add gift aid to your donation.
Whilst it’s a term you might hear, many people are unsure what a gift aid contribution actually is and how it works, so if that’s you, you’re certainly not alone. This week, we’re here to get into the details, and tell you all about why gift aid can make a huge difference to charities like Simon on the Streets.
What is gift aid?
Gift aid really is the epitome of ‘look after the pennies, and the pounds will take care of themselves’. When you add gift aid, charities like us can claim an additional 25p for every £1 you donate, at no additional cost to you.
This essentially increases any donation you make by 25% - making your contribution even more valuable to whichever organisation you choose to support.
Can I give gift aid?
To be eligible to add gift aid to your donation, you need to be making the donation from your own funds, and have paid UK income and/or capital gains tax during the tax year.
Gift aid can’t be claimed on other people’s money or on any money raised during a fundraising event.
To give an example, if someone you know is running the London Marathon and you decide to make an individual contribution to their fundraising page with your own money, you can add gift aid. If they were to hold a public bake sale and you buy a cake, they cannot add gift aid to that contribution.
What if I want to make a donation from my salary?
Payroll giving is a fantastic way to support a charity. However, these contributions will not have gift aid added as they will be deducted straight from your salary and will not have been taxed.
What if I can’t give gift aid?
If, for whatever reason, you’re not making a taxable income or not able to give gift aid, there are plenty of other ways you can support your favourite charities.
Whether you want to take on a physical challenge (we had several Simon the Streets runners in the 2023 Leeds marathon for example), want to host a bake sale or do something totally out of the box, there are so many different options when it comes to effective fundraising.
And remember, it’s not always about money. Volunteering is extremely valuable to organisations, too. You can always support people with your time.
We hope this has given you an insight into the gift aid process, and how much difference that little tick can make.
If you’d like to speak to us about donations, fundraising or volunteering, we’d love to hear from you. Get in touch with our fundraising team today.