What income can my charity claim Gift Aid on?

A woman in a thrift store looking at clothing

Gift Aid applies to qualifying donations. This broadly means cash donations which are freely given and not subject to any repayment conditions.

Any benefits provided to the donor must fall within the prescribed limits.

Cash includes cash, cheque, direct debit, standing order, or bank transfer, debit or credit card, or postal order.

HMRC does not consider crypto assets to be currency or money, so any donations of crypto assets will not be eligible for Gift Aid. Gift Aid is not available on amounts received from companies or through payroll giving where relief is given at source.

Payments to a charity in return for goods or services, or entry to an event, are not gifts to charity and so are not eligible for Gift Aid.

Volunteer expenses

Where a volunteer wishes to waive their expenses, if they wish to Gift Aid the donation, the charity must pay the expenses to the volunteer and then the volunteer must donate the amount to the charity. See the HMRC Chapter 3.41 guidance.

Gifts of goods to charity shops

Because Gift Aid is only available on cash donations, so charities are unable to claim Gift Aid on donated goods for sale in a charity shop. Retail Gift Aid is a workaround which allows charities to claim Gift Aid on charity shop donations by treating the charity or its trading subsidiary as selling the goods on behalf of the donor, who then donates the proceeds. You can find out more about Retail Gift Aid here.

CTG does not provide tax advice and so the information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future.