On Gift Aid Awareness Day 2024, CFG is emphasising the importance of Gift Aid and says more must be done to maximise the scheme.
CFG's report - Breaking down the barriers - shares the views of 100 charity leaders on their experience of the Gift Aid scheme.
The report reveals that although Gift Aid is a vital source of income for charities, many charities are still missing out on potential claims. It also highlights that more could be done to support charities in maximising Gift Aid.
The report reveals:
- 90% of the charities surveyed had registered to claim Gift Aid and commented how valuable the tax relief was to them.
- 20% of charities found claiming Gift Aid 'difficult' or 'very difficult' for a range of reasons.
- 60% of charities are aware of either 'a lot' or 'some' support that is available to them when registering for and making Gift Aid claims. 16% say there is not enough support.
- 70% would like to see more done to raise awareness of Gift Aid among the general public.
- 50% of charities support the idea of a government-backed public awareness campaign for Gift Aid.
- 40% would like the rules around Gift Aid to be clearer and easier to understand.
The survey, which was conducted in summer 2024, highlighted the importance of Gift Aid to charities and the people they support.
One charity leader explained: "It is vital for our work and makes a difference to the lives of poor communities around the world every single day."
Fortunately, there are no plans to remove or change this tax relief but the charity sector is urging government to automate the Gift Aid process through The Future of Gift Aid project. Every year charities miss out on around £560 million in Gift Aid.
Other key findings:
Registration and claiming barriers
Some charities find the Gift Aid claims process to be complex and time-consuming.
Lack of awareness
There is a need to increase awareness among the general public about Gift Aid. In addition, charity awareness of the Gift Small Donations Scheme (GASDS) could be increased.
Operational challenges
Charities face administration challenges and some of the more complex tax rules can be difficult to grasp, leading to missed claims. Some charities are missing out on Gift Aid income due to lack of resources and support.
Recommendations:
1. The Future of Gift Aid: CFG is reiterating the charity sector's 'ask' for the government to progress The Future of Gift Aid project.
2. Simplified registration process: streamline and improve the Gift Aid registration and claims process which many charities can find fiddly and time-consuming.
3. Boost the Gift Aid Small Donations Scheme (GASDS): raise the limit of the GASDS amount from £30 to encourage take-up and raise more funds.
4. Enhanced awareness campaigns: launch targeted campaigns to educate both donors and charities about Gift Aid and GASDS.
5. Increased support and training: provide more comprehensive training and support resources to help charities maximise Gift Aid.
6. Technological solutions: continue to explore the digitisation and automation of Gift Aid processes.
Download and read the report
Dionne Sturdy-Clow, Gift Aid Project Officer at CFG, commented:
“For UK charities small and large, every pound really does count. Maximising income is even more vital in 2024, with the cost of living crisis continuing to impact charities. Many are seeing their income reduce but demand on their services increase.”
“By ticking the box and applying Gift Aid to donations, donors are making a tangible difference to the lives of countless people. And it doesn’t cost them a penny extra – it's money from the government!
"CFG's Gift Aid Awareness Day campaign is one among several that aims to help close the Gift Aid gap. We know that raising awareness is a year-round endeavour.
"We look forward to continuing our work with our partners and members to ensure charities can maximise Gift Aid and increase their impact for the people and communities they work with."
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