The Government operates a scheme called Gift Aid that allows charities to claim 28p for every pound donated.
So, for example, if you donate £5 to LGBT Foundation, it means that you are actually giving us £6.40, at no extra cost to you!
Giving under Gift Aid means that so much more money can be raised with relatively little effort.
Gift Aid - the facts
- For individuals, the gift aid rules require the completion of a Gift Aid form. Please click here to download a Gift Aid Form. This provides us with the information required for us to be able to claim Gift Aid on a donation.
- Gift Aid can be claimed on all individual and sponsorship donations that are made to LGBT Foundation.
- Gift Aid applies only to ‘Gifts’. That means we can’t use Gift Aid to boost fundraising totals on activities where people have been charged an entry fee or have entered a competition. This also extends to activities where the donor can’t be traced (such as giving to collections).
- To ensure that the Gift Aid is valid, (meaning we can claim the money back), it’s vitally important that all the information asked for on the Gift Aid Declaration Form is provided.
Gift Aid Declaration Form
Any charity has to be able to trace the receipt of any donation on which Gift Aid is claimed, so it is incredibly important that any forms sent back to us are accurate and complete. All Gift Aid declaration forms should include the following:
- The name of our charity ‘LGBT Foundation’ (which our form includes)
- The full name and home address of the person making the donation, including their postcode. Donations cannot be made jointly.
- A statement that the individual pays an amount of income and/or capital gains tax that is at least equivalent to the tax that LGBT Foundation will claim from HM Revenue and Customs (this is on our standard form) and that the person wants his or her donations to be treated as Gift Aid donations.
Some other key facts
- When LGBT Foundation receives a donation from a UK taxpayer, we are entitled to claim an amount of tax (calculated at the basic rate of income tax in that tax year) paid on that donation.
- Once you have given your permission for us to do this on your behalf (by filling in this Gift Aid form), there is no need for you to do anything else. All that is required is that the amount of tax you pay in a given tax year is at least equal to the amount of tax claimed by LGBT Foundation in that same year, even if this is paid in the form of lower rate (10%) income tax.
- In addition, because this amount is calculated over the whole tax year, there is no requirement that tax is paid regularly – it is a purely a question of how much had been paid in the tax year as a whole. Capital gains tax is equally applicable as income tax.
- The amount of tax we claim will be around 28% of the total value of your donations in that tax year. Furthermore, if you are a higher tax player, you are also entitled to claim the difference between the standard rate which we will claim and the amount of tax you have actually paid. For further details on how you can do this please contact your tax office.
- If your tax situation changes and your gifts no longer be eligible for the Gift Aid scheme please contact us and we will amend your record accordingly.
If you like the idea of Gift Aid and would like to donate online, please go here.