Charities are missing out on as much as £560m a year in Gift Aid due to low donor uptake, research from YouGov has found.
Key information from the research includes:
Just 55% of people who donated to charity in the past year claimed Gift Aid
1/5 of people with a household income of more than £50,000 were not claiming Gift Aid
15% of people said they planned to cut back on charitable donations over the next six months to help manage their bills
Why Gift Aid?
HM Revenue & Customs revealed last year that charities and donors had benefitted from a year-on-year rise in tax relief, but the total given and the number of people taking part in payroll giving had declined.
With the cost of living causing many to cut back, making a Gift Aid declaration can make your donation go further and raise more money for charities. Charities are currently missing out on millions every year from generous donors who forget to tick the Gift Aid box.
Tips for Charities
If you’re a UK-based charity, you can enable Gift Aid to maximize your donations.
Gift Aid is an income tax relief designed to benefit charities and Community Amateur Sports Clubs (CASCs) in the UK. Gift Aid increases the value of your charity’s donations by 25%, because you can reclaim the basic rate of tax on your donations – at no extra cost to the donors.
You can claim back 25p every time an individual donates £1to your charity or community amateur sports club (CASC).
This allows your nonprofit to boost eligible donations by 25%.