With effect from November 2023, when an individual makes a donation to charity, or to a fundraiser on Facebook or Instagram, the donation is legally made to PayPal Giving Fund (PPGF), which is itself a registered charity. Gift Aid claims are now made by PPGF in its own right and, subject to due diligence tests, the gross donation is then passed on to recipient charities as a grant. As a result, the Gift Aid compliance risk has now transferred from the recipient charity to PPGF.
The transition of from Facebook / Meta to PayPal has given rise to a number of questions for charity fundraising and finance teams around how the new arrangements work in practice. In response, CTG arranged a meeting on 5 December 2023, to enable members of its Gift Aid Practical Issues Working Group to pose their questions to Nick Aldridge and Frank Barreca from PayPal. Participants found the session both enlightening and very helpful. We are therefore making the recording of the session available so that charities and their advisers can benefit.
You can watch the recording here.