Gift Aid

Gift Aid is a program of HM Revenue & Customs (HMRC) that enables not-for-profit organisations to claim back the basic rate tax paid by donors. In effect, electing to donate with a Gift Aid declaration increases your gift to the organisation at no additional cost to you.

Note: The Gift Aid declaration is governed by a 4-year rule that limits tax claims for donations to within four years of the end of the financial period in which the donations are received. This means that donations made outside of that period are not included in the Gift Aid claim.

Gift Aid is for monetary donations by individuals who pay UK tax. Charities in the UK, EU, Norway, and Iceland may be eligible for Gift Aid. Charities take the donation (on which you've already paid tax), and reclaim the basic rate tax on its gross equivalent (the amount before basic rate tax was deducted).

Gift Aid is calculated by the following equation:

(donation / (100 - basic rate of tax)* 100) - donation

The following examples show the full potential of a donor's gift. Donors at higher rates of tax have a higher potential gift if they elect to donate their additional reclaimed tax.

Note: The tax rates below are for illustrative purposes only. Contact HMRC for the most up-to-date tax rates and to determine the rate of your taxes.

  Donation Charity Claims Total Donation Donor Reclaims Full Potential
Basic rate taxpayer (20%) £100 £25 £125 £125
Higher rate taxpayer (40%) £100 £25 £125 £25 £150
Higher rate taxpayer (45%) £100 £25 £125 £31.25 £156.25