Carmen James - 29th Aug, 2023
Gift Aid allows charities to generate an additional 25% on donations, at no extra cost to the donor. Find out how to apply Gift Aid and how your charity can download the data required to reclaim Gift Aid.
Donating to charities in the UK is tax-free. This means as long as a donor is eligible to apply Gift Aid and has applied it when making their donation, the charity can claim an extra 25p for every £1 donated. It will not cost the donor or charity any extra.
For a donation to be eligible for Gift Aid the donor must make a declaration when making their payment confirming that they meet the following criteria:
The donor is a UK tax payer;
The donor understands that if they pay less Income Tax and/or Capital Gains Tax in the current tax year than the amount of Gift Aid claimed on all my donations in the same tax year, it is their responsibility to pay any difference;
The donation is the donor's own money. It has not come from anyone else, e.g. a business, friends, family or a collection;
The donation is NOT the proceeds from the sale of goods or provision of service e.g. a cake sale, auction or car wash;
The donor is NOT receiving a benefit from this donation, e.g. entry to an event, raffle or sweepstake.
These criteria might seem a little complicated, but they are important in determining whether a donation is eligible for Gift Aid. Donors are asked to confirm they meet these criteria whenever a donation is made.
How do charities claim Gift Aid?
Charities receiving donations via Wonderful will need to make a claim directly with HMRC for the Gift Aid applied to donations. Charities can securely export the required data from the 'Donation data' section of their Wonderful account.
Data is available in the same format required when claiming Gift Aid from HMRC, making the process as easy as possible for charities.
Can Gift Aid be added to a donation that's already been made?
Wonderful can't guarantee that this is possible. For more information please contact the support team who will do their best to help.
Whilst making a donation via Wonderful, donors can make Gift Aid declarations provided the donation qualifies for Gift Aid. Charities are provided with a CSV download of transactions with Gift Aid data in the same format as is required by HMRC when claiming Gift Aid.
Gift Aid data is available within your charity account and can be downloaded at any time once you are logged in.
Charities will need to use this transaction data to claim back Gift Aid directly from HMRC.