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The voice of Scotland’s vibrant voluntary sector

Published by Scottish Council for Voluntary Organisations

TFN is published by the Scottish Council for Voluntary Organisations, Mansfield Traquair Centre, 15 Mansfield Place, Edinburgh, EH3 6BB. The Scottish Council for Voluntary Organisations (SCVO) is a Scottish Charitable Incorporated Organisation. Registration number SC003558.

Gift Aid going begging: £500m unclaimed last year

This news post is 10 months old

Charities are missing out to the tune of hundreds of millions

New research from the Charities Aid Foundation (CAF) shows just over half (54%) of donors said they claimed Gift Aid when they gave money to charity last year.  

Although the number of donors using Gift Aid has risen slightly over the past few years, it is still underused by many who pay income tax.

Charities currently miss out on £500 million in Gift Aid which is unclaimed every year. The scheme means registered charities can reclaim income tax on a donation made by a UK taxpayer, effectively increasing the amount of the donation.

For a basic-rate taxpayer, approximately 25% is added to the value of any gift made using Gift Aid. A £10 donation will effectively be worth £12.50 to the charity but only if the donation is declared.

This winter, charities are meeting high demand for their services while donations are falling, and their costs are significantly higher. According to CAF research with charities, a decline in fundraising income is one of the main concerns for two-thirds (67%) of organisations, as households cut back to cover their own bills.

For a basic-rate taxpayer, approximately 25% is added to the value of any gift made using Gift Aid.

More than 12 million people who are self-employed or earn more than £100,000 are due to complete a self-assessment tax return before the deadline on 31 January.

They are being encouraged to claim Gift Aid relief on their donations. 

Mark Greer, Managing Director for Philanthropy Services, Charities Aid Foundation, said: “Charities miss out on millions every year from generous donors who forget to tick the Gift Aid box.

“With the cost-of-living causing many to cut-back, there are some relatively simple ways to make sure the charities you care about are getting the most from your donation. If you haven’t already, make a Gift Aid declaration to the charity.

“If you complete a Self Assessment and are a higher rate taxpayer, you may also be entitled to personal tax relief and you can also check whether you can claim for donations in previous years.”



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