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This is a freeview 'At a glance' guide to the Gift Aid Small Donations Scheme.

Gift Aid Small Donations Scheme (GASDS)

Subscribers: see the GASDS tab in our Gift Aid guide for more detailed content.

From 6 April 2016 charities will be able to claim a Gift Aid style top-up payment on up to £8,000 of small cash donations per year without the need to obtain Gift Aid declarations. From April 2013 to April 2016 the top-up payment was limited to total donations of £5,000 per year.

Charities are eligible to join the scheme if they have:

Key features of the Gift Aid Small Donations Scheme (GASDS):

The maximum amount of the claim is the lower of:

This means that the maximum a charity or Community Amateur Sports Club (CASC) will be able to claim a repayment of is £2,000 per year (on £8,000 of qualifying donations).  Prior to April 2016, the maximum repayment was £1,250 per year on up to £5,000 of qualifying donations.

Basic example:

Furry Pets Trust (a very small charity) receives £450 in cash donations from its collecting box in a local pet shop. It also receives £700 in Gift Aid donations in 2021-22. It meets all the other qualifying conditions. The maximum donations that the charity may include in its top up claim is the lower of:

The claim is restricted to £450 x 20/80 = £112.50.

Collections in community buildings

From April 2016, charities can also claim a top-up payment on up to £8,000 of small donations collected during charitable activities held in a community building such as a church or village hall. From April 2013 to April 2016 the limit was £5,000.

From 6 April 2017 small donations received outside the community building, but within the local authority area, also qualify for GASDS.

A charity that carries out charitable activities in two community buildings can claim a maximum top-up on small donations of either: £8,000 collected in each community building or £8,000 collected anywhere in the UK.

If top-up payments for each community building are claimed, then only small donations collected in the same local authority area will be eligible for top-up payments.

For example:

Furry Pets Trust (a very small charity) receives £4,000 in collection boxes around town, received £2,500 of small donations during its monthly charitable activities held in a village hall, and £3,000 of small donations collected during charitable activities held every other month in a local church.  The charity can claim a top up in respect of either the £4,000 or the £2,500 and £3,000.

Compliance

Charities have to observe the detailed qualifying conditions and also need to ensure that:

For small donations, charities must record total cash donations collected, date of the collection and the date it was paid into a bank account. Records must also be kept of any contactless card donations (e.g. card machine receipts). 

For community building collections, charities must also record the address and postcode of the event, the type of event, the number of events held, and an estimated number of beneficiaries who attended.

External link

HMRC guide: Gift Aid Small Donations Scheme


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