Gift Aid
This guidance note is designed to help you register and start claiming Gift Aid. Further information is provided by HMRC by way of 12 Help Sheets detailed below and links to the HMRC website.
Content
- What is Gift Aid?
- How do we register for Gift Aid
- What is a Gift Aid declaration
- What can I claim Gift Aid on?
- Membership Subscriptions and CASC
- Sponsored Events
- Claiming Gift Aid
- HMRC Gift Aid Audit
- HMRC Help Sheets
- ‘JustGiving’
- What is Gift Aid?
Gift Aid is a simple way for Community Amateur Sports Clubs (CASC) and charities to increase the value of gifts of money from UK taxpayers. It works by allowing the CASC or charity to reclaim the income tax paid by the donor on the gift from HMRC. The club will receive 25p for every £1 in the form of a tax rebate from HMRC.
- How do we register for Gift Aid?
When you register with HMRC as a Community Amateur Sports Club (CASC), this entitles you to claim Gift Aid.Individuals can make gifts of money to registered CASCs using Gift Aid in the same way as they make gifts to charities.
Download CASC A1 Community Amateur Sports Club (CASC) registration form
For charities to claim Gift Aid, those with an annual income over £5000 must register with the Charity Commission All charities must then apply to HMRC to be recognised for Gift Aid.
Download ChA1 Charities Application form
HMRC will check that you are entitled to claim Gift Aid and then, if all is in order, issue you with a unique reference number so that you can start claiming.
- What is a Gift Aid Declaration?
A donor must have paid enough income tax during the financial year before it can be claimed back as Gift Aid on a donation. HMRC will need to verify the connection between the Gift Aid claim and the tax payer via a Gift Aid declaration that shows who paid the tax in the first place.
To ensure the correct information is given to the donor it is suggested that you use the model declaration attached.
Download the Gift Aid declaration form
You may also incorporate the declaration into your membership application form, sponsorship form, printed on a collection envelope or on a website where the donor’s details are recorded on a database.
Records of all donations and Gift Aid declarations must be kept for four years after the accounting period to which they relate. Declarations from donors who will continue to make donations in the future should be kept indefinitely.
- What can I claim Gift Aid on?
- You can claim Gift Aid on gifts of money from individuals for which the donor receives little or no benefit. Benefits are acceptable up to the following value:
Amount of donationMaximum benefit value
£0 - £10025% of the donation
£101 - £1000£25
£1001+5% of the donation (maximum £2500)
£10001+£500
- Charities can claim Gift Aid on membership subscriptions but CASCs generally cannot (see below).
- Gift Aid cannot be claimed on donations from companies, donations through payroll giving, gifts of shares, gifts in kind or payments for goods or services.
More information is available on Help Sheet 3 and Gift Aid Rules in specific situations -
- Membership Subscriptions and CASC
It is possible to reduce subscription fees and request a donation be made on top of the fee on which Gift Aid can then be claimed. However, you will need to show that the reduced subscription fee covers running costs and make it clear to new and renewing members that the donation is voluntary and that membership is not affected if the donation is not made.
The club must review its finances to ensure that the lower subscription rates (excluding donations) cover its costs. Example of income from restructuring the membership fees can be found at Appendix A. Model clauses for Membership forms can be found at Appendix B.
- Fund Raising and Sponsored Events
If items of a commercial value are auctioned, any income over the commercial value qualifies for Gift Aid. Note that the bidders must be aware of the commercial price and that they are actually over-paying for the item.
Tickets for events such as dinners, dances, discos, concerts, fireworks displays, shows, galas, etc. can be sold at a set price which does not qualify for Gift Aid (a price that covers the cost of the event), but with an additional request for a donation that does qualify. However, these donations must not be compulsory to attend the event and the participant must be aware of the donation. The same principle applies to raffles, casino or race nights, the production of calendars, Christmas cards, etc.In all of these cases the club is taking a risk on people making the donations / duel payments.
In the case of sponsorship, those people who sponsor participants in an event can use Gift Aid to increase the value of the donation. For ease of administration use the model sponsorship form . By ticking the Gift Aid box and completing all the columns in full, including the sponsors full name and address, Gift Aid can be claimed.
- Claiming Gift Aid
To claim Gift Aid more than once a year the claim must be at least £100. To claim Gift Aid use form R68(i) along with the guidance notes at .
When completing the schedule you need to enter the name of each donor for which you hold a Gift Aid declaration, the date of the donation and the amount. If they have made more than one donation, enter the date of the last donation and the total amount. For a sponsored event, enter the name of the participant and the total amount raised. You must keep all the sponsorship forms in your records.
It is possible to add small donations together as one entry, up to £500. In the name column add a description such as “women’s team donations” to enable you to trace the relevant declarations if HMRC request.
If your charity is a company or you are claiming for a CASC, you need to complete a separate schedule of donors for each accounting period. Claims can be backdated no more than 4 years.
Payment will be made directly to the club’s bank account.
- HMRC Gift Aid Audit
HMRC may ask you to submit records or visit your club. In either event they will want to see the following:
- Gift Aid declarations for donations included in your claim
- Evidence to show that you received and banked the donations
- Evidence to show you received and banked the tax repayment
- Any other records relating to the claim e.g. sponsorship forms
- A copy of your latest accounts.
If mistakes are found you may need to repay some of the Gift Aid received.
- ‘JustGiving’ – Gift Aid without the paperwork
Claiming Gift Aid does involve some paperwork, as described above, but can be made simpler by signing up for online giving through “Just Giving”.
‘JustGiving for Sports Clubs’ allows CASCs to raise money through the JustGiving website and claim Gift Aid without having to pay the monthly subscription fee of £15 per month and without the administration.
HMRC estimate that only 10% of CASCs are utilising their ability to claim Gift Aid meaning that grassroots clubs are missing out on funding that they are entitled to claim.
Registering for JustGiving is easy. If you are already a CASC you can sign up at You will receive:
- Step-by-step registration guidance.
- A Justgiving webpage for your club and unlimited Justgiving pages for your club members to raise money through.
- Expert fundraising guidance and expertise
- Telephone support
Note that JustGiving do charge a 5% transaction fee on donations. An example of what you can expect to receive from a £10 donation is shown below.
Donation£10
+Gift Aid£2.50
-Justgiving fee-63p
-Debit card fee *-17p
Total £11.70
Note that there are also credit card fees of 1.3% or paypal fees of 1.45%.
If you are not yet a CASC please refer to the CASC guidance note. About how you can benefit from become a CASC including tax benefits and Gift Aid.
- HMRC Help Sheets
HMRC have produced 12 help sheets about Gift Aid and to help you through the process:
Helpsheet 1: What is Gift Aid? (PDF 324K)
Helpsheet 2: What is a Gift Aid declaration? (PDF 169K)
Helpsheet 3: What can I claim Gift Aid on? (PDF 204K)
Helpsheet 4: What is a benefit for Gift Aid purposes? (PDF 206K)
Helpsheet 5: Do I need to keep records of Gift Aid donations? (PDF 222K)
Helpsheet 6: Is my charity a trust or a company? (PDF 289K)
Helpsheet 7: Community Amateur Sports Clubs (PDF 236K)
Helpsheet 8: How do I run a sponsored event and claim Gift Aid? (PDF 198K)
Helpsheet 9: How do I claim Gift Aid and how often can I claim? (PDF 184K)
Helpsheet 10: How should I list donations on the schedule? (PDF 194K)
Helpsheet 11: What are the time limits for claiming Gift Aid? (PDF 168K)
Helpsheet 12: What happens if my charity is selected for a Gift Aid audit? (PDF 200K)
Appendix A – CASC Subscription Restructure
Currently:Total Income
220 members paying £50 annual subscription£11000 (no gift aid)£11000
Outcome 1: All members make donation
220 members paying £25 annual subscription£5500 (no gift aid)
220 members paying £25 donation£5500
Gift Aid£1375£12375
Proposal 2: 90% members make donation
220 members paying £25 annual subscription£5500 (no gift aid)
198 members paying £25 donation£4950
Gift Aid£1237.50£11687.50
Appendix B: Extract for Annual Subscription Renewal Letter
As we are registered under the Government’s Community Amateur Sports Club (CASC) scheme we are entitled to reclaim 25p in tax per £1 donation from members and supporters. We have therefore been reviewing our membership subscriptions policy and have decided to reduce the annual subscription from £_ to £_ but to ask that you also make a voluntary donation of at least £_. We emphasize that this donation is entirely voluntary but it would be gratefully received as it would also enable us to claim an additional 25p per pound from HMRC. The new membership registration form, including space for your donation, is enclosed.
Appendix C: Auction Declaration
I confirm that I have purchased an item at your auction on [date] for [£ ]. I understand that the normal purchase price of this item is [£ ] and that accordingly I wish to treat the additional [£ ] I have paid as a donation to [name or CASC] qualifying for Gift Aid.
I confirm that I have or will have paid an amount of income or capital gains tax at least equal to the tax reclaimed on this donation.
Name:Date:
Appendix D: Gift Aid Model Clauses for Membership Forms
Junior Membership Form
I agree to pay the junior subscription and would like to make a donation on top. I understand that I do not have to make a donation and that my son/daughter can join the club by only paying the subscription fee of £ .
Subscription £
Donation£
I enclose a cheque/cash for£
I would like to treat the donation to the club as qualifying for Gift Aid and confirm that I have or will pay income and/or capital gains tax at least equal to the amount the club will reclaim on the donation.
Signed:Date:
Adult Membership Form
I agree to pay my subscription and would like to make a donation on top. I understand that I do not have to make a donation and that I can join the club by only paying the subscription fee of £ .
Subscription £
Donation£
I enclose a cheque/cash for£
I would like to treat the donation to the club as qualifying for Gift Aid and confirm that I have or will pay income and/or capital gains tax at least equal to the amount the club will reclaim on the donation.
Signed:Date: