Gift Aid remains one of the most valuable tax relief tools available to UK charities. But not every donation comes with a signed declaration or traceable donor. That’s where the Gift Aid Small Donations Scheme (GASDS) comes in.

Designed to help charities claim top-up payments on small cash or contactless donations, GASDS allows organisations to increase their income even when donors cannot be individually identified.

If you’re a charity trustee, understanding how this scheme works and how to stay compliant can make a measurable difference to your fundraising. Our guide today covers the essentials: who qualifies, how much you can claim, what counts as a small donation and how to avoid common pitfalls

What Is the Gift Aid Small Donations Scheme (GASDS)?

The Gift Aid Small Donations Scheme (GASDS) allows UK charities and community amateur sports clubs (CASCs) to claim a Gift Aid-style top-up on eligible small donations, even when the donor hasn’t completed a Gift Aid declaration.

Introduced in 2013 and updated through the Small Charitable Donations Act 2017, the scheme was created to help charities maximise income from cash, contactless or chip and PIN donations, especially those collected during events, street collections or place-of-worship offerings.

Under the scheme, you can claim a 25% top-up on small donations of £30 or less, up to a maximum threshold each tax year. These additional funds can significantly boost unrestricted income without placing extra demands on your supporters.

Who Can Use GASDS?

To use the Gift Aid Small Donations Scheme, your charity must meet several eligibility criteria set by HMRC. First, your organisation must already be registered with HMRC for standard Gift Aid. GASDS is not a standalone scheme — it complements existing Gift Aid arrangements and is only available to organisations with a compliant Gift Aid record.

Your charity must also have made a Gift Aid claim in the same tax year as your GASDS claim. While earlier versions of the scheme required a two-year history, this condition was removed in April 2017. However, HMRC still expects a good compliance record, including no penalties or breaches related to previous Gift Aid or GASDS claims.

What Counts as a ‘Small Donation’?

For the purposes of GASDS, a ‘small donation’ is defined as a cash, contactless, or chip and PIN donation of £30 or less made by an individual. These are typically donations collected in settings where it’s not practical or appropriate to ask for a Gift Aid declaration, such as a charity bucket collection, church offering or electronic donation at a local event.

To qualify under GASDS, the donation must:

• Be £30 or less (not rounded-up amounts)
• Be received in cash, via contactless payment or via chip and PIN card payment
• Be collected in the UK

These criteria are strictly enforced. Donations over £30, even by a small margin, are not eligible. Similarly, cheques, standing orders, bank transfers and online payments, (such as those made through websites or payment apps) must be excluded from the GASDS claim.

How Much Can a Charity Claim Under GASDS?

As of the 2025 tax year, the standard limit for GASDS claims is £8,000 in eligible small donations per charity per tax year. This allows your charity to claim up to £2,000 in top-up payments from HMRC, (25% of £8,000) significantly boosting your unrestricted income.

If your charity operates in multiple community buildings and qualifies under HMRC’s community buildings rules, you may be able to claim more than £8,000 in eligible donations, provided that each location meets the criteria for public access and regular charitable activities.

It’s important to track your claims carefully to avoid exceeding the allowable threshold. HMRC may request evidence to confirm the total value of small donations and how they were collected.

Also note that under the “matching rule,” your GASDS claim is limited to 10 times the value of your standard Gift Aid claims in the same tax year.

For example, if your charity claimed £1,500 in standard Gift Aid, you could claim on up to £15,000 of eligible small donations under GASDS, although the standard annual cap of £8,000 still applies unless you qualify under community buildings rules.

What Is the Difference Between GASDS and Standard Gift Aid?

While GASDS and standard Gift Aid both offer 25% top-up payments on eligible donations, they operate under different rules and serve different purposes.

Gift Aid is available when a UK taxpayer gives money to a registered charity and completes a valid Gift Aid declaration. This declaration confirms that the donor has paid enough Income Tax or Capital Gains Tax to cover the amount the charity will reclaim from HMRC. Gift Aid can be claimed on donations of any size, including regular direct debits, standing orders and online contributions.

GASDS, on the other hand is specifically designed for small cash and contactless donations of £30 or less, where it’s not practical to obtain a declaration. It allows charities to claim a Gift Aid-style top-up even if they don’t know the donor’s identity, but only up to the annual limits and subject to eligibility.

Some key differences include:

• Donor declaration: Required for Gift Aid; not required for GASDS
• Donation types: Gift Aid covers most donation methods; GASDS only covers cash and contactless
• Eligibility: Gift Aid is open to all eligible donations with a declaration; GASDS is only available to charities that meet strict criteria and stay within annual limits

How to Claim GASDS: Step-by-Step Guide

Claiming GASDS is done through the same online platform used for Gift Aid — HMRC’s Charities Online service. The process is relatively straightforward if you already claim Gift Aid regularly but it requires accurate records and clear separation between the two types of claims.

Here’s how to submit a GASDS claim:

1. Log in to Charities Online using your HMRC credentials.
2. Download and complete the GASDS schedule spreadsheet from the HMRC website.
3. List only eligible small donations, ensuring each entry meets the criteria (cash/contactless, £30 or less, UK-based).
4. Submit the spreadsheet through the Charities Online portal, selecting the appropriate GASDS option.
5. Retain your records, including where and how donations were collected, in case HMRC requests evidence.

Unlike standard Gift Aid, you won’t need individual donor details, but HMRC expects charities to maintain logs showing the method, location and date of each collection. This can be done using spreadsheets, accounting software or a designated donations register.

Claims must be submitted within two years of the end of the tax year in which the donation was received. For example, donations collected during the 2024/25 tax year must be claimed by 5 April 2027.

Common Mistakes and How to Avoid Them

Even well-intentioned trustees can run into trouble with GASDS if they’re not careful. The most frequent issues relate to eligibility, record-keeping and misinterpreting what counts as a small donation. Here are some of the most common pitfalls:

• Overclaiming beyond the £8,000 limit: Claims must stay within the annual cap unless your charity qualifies under the community buildings rules.
• Including ineligible donations: Only cash and contactless donations of £30 or less qualify. Cheques, bank transfers and larger donations must be excluded.
• Missing the matching rule: You can only claim as much under GASDS as you have claimed through standard Gift Aid in the same tax year.
• Poor internal records: Even though individual donor details aren’t required, charities must still keep clear logs of collection dates, amounts and methods.
• Claiming without being eligible: Charities must meet all HMRC criteria before making a claim, including being registered for Gift Aid and having a clean compliance record.

To avoid these issues, review your fundraising practices and claim process regularly. Use a consistent system to track donations and keep your team informed about what counts and what doesn’t. If in doubt, seek guidance from your charity accountant or refer directly to HMRC’s official GASDS guidance.

Make the Most of GASDS with Confidence

For small and medium-sized charities, the Gift Aid Small Donations Scheme is an invaluable way to turn spontaneous donations into long-term support. Yet, as with all tax reliefs, getting the details right matters.

If you want to make sure you’re claiming the right amount in the right way, we’re here to help.

Book a free call with Charity Accounting Partners and get expert support on managing Gift Aid, GASDS and everything in-between.