Gift Aid: relaxing of rules

UK Fundraising, in collaboration with CTG, have published details of the relaxation of the following Gift Aid rules:

Cancelled events

HMRC has accepted that a charity may claim Gift Aid on ticket refunds if individuals choose to donate their refund to the charity under Gift Aid. This is subject to the charity informing the individual that the donation is not obligatory but that once made it is non-refundable, alongside a handful of other requirements. This applies to refunds for fundraising events, challenge events, courses and conferences but only if cancelled as a result of COVID-19.

Membership subscriptions

In light of many charities and Community Amateur Sports Clubs (CASCs) reducing or even waiving membership subscriptions as a result of COVID-19, HMRC have accepted that donations made instead of subscriptions and intended to support the charity/CASC may be eligible for Gift Aid. Furthermore, amounts given in excess of reduced subscription rate, may also be eligible for Gift Aid.

Retail Gift Aid Scheme (RGAS)

So long as the charity’s staff have provided an explanation of the Gift Aid scheme to the donor, Gift Aid can be claimed under RGAS with only an ‘oral declaration’. Furthermore, should return notifications be issued by post but not received due to office closure, charities are permitted to continue claiming Gift Aid under RGAS.

Gift Aid Small Donation Scheme (GASDS) HMRC have accepted that cash donors may wish to save up regular donations of under the £30 GASDS limit and give them to a charity in one go once it is safe to do so. Where the charity is happy that these are separate, sub-£30 donations, then the total donation is eligible for GASDS.

This article was originally written by our colleagues at MHA MacIntyre Hudson