How to Claim Gift Aid for Your Charity

Gift Aid continues to be one of the most effective ways to increase your charity’s income without asking donors to give more. Yet many organisations still miss out, often not because they don’t qualify, but because the process feels overly technical or gets pushed down the priority list.

In reality, it’s not difficult to manage, but it is structured, and success depends on how well your charity tracks donor information, cash donations, and eligible giving across each accounting period.

Understanding these rules from the outset will save time, avoid rejections, and increase the value of every donation. Here’s what you need to check before submitting your first – or next – claim.

Who Is Eligible to Claim Gift Aid? – HMRC Recognition Requirements

Your charity must be formally recognised by HMRC to submit gift aid repayment claims. This applies to:

• Registered charities in England, Wales, Scotland, or Northern Ireland
• Charitable trusts
• Charitable companies
• Community Amateur Sports Clubs (CASCs)

Importantly, registration with the Charity Commission is not enough. HMRC recognition confirms that your organisation:

• Has exclusively charitable purposes
• Applies its income solely for those purposes
• Is properly governed and not for private benefit

Which Donations Qualify?

Only donations from individuals who are UK taxpayers are eligible for Gift Aid. The donor must have paid enough income tax or capital gains tax in the same tax year to cover the amount you are reclaiming.

Qualifying donations include:

• One-off gifts made online or in person
• Regular giving through standing order forms or direct debits
• Donations through platforms like JustGiving or GoFundMe
• Gifts collected at charity events, charity auctions, and sponsored challenges
• Offerings made using planned giving envelopes with valid gift aid declarations

Corporate donations may also qualify but are typically claimed through company tax reliefs and not under the standard Gift Aid scheme.

What Doesn’t Qualify?

There are also clear exclusions. You cannot claim Gift Aid on:

• Payments where donors receive something of value in return – e.g., meals, tickets, products, or access to viewing charity property
• Entry fees, raffle ticket sales, or goods bought in exchange for payment
• Anonymous donations, unless claimed under the Gift Aid Small Donations Scheme (GASDS)
• Donations from unregistered charities, or those not recognised by HMRC

Managing Donor Benefits

If a donor gets something back in return, like a souvenir, access to viewing charity property, or merchandise, that benefit must fall within HMRC’s strict thresholds:

• Donations up to £100: benefit must not exceed 25%
• £101–£1,000: capped at £25
• Over £1,000: capped at 5%, up to a maximum of £2,500

Expenses reimbursed to volunteers or participants are not eligible unless clearly documented and treated correctly under volunteer expenses guidance.

Steps to Claim Gift Aid

Claiming Gift Aid involves a compliance process that depends on preparation, record-keeping, and accurate reporting. Below are the key steps you should follow to ensure your claims are complete, compliant, and timely.

Step 1: Obtain HMRC Recognition

Before making any claim, your charity or community amateur sports club (CASC) must be formally recognised by HMRC. This process is separate from Charity Commission registration and involves submitting your governing document, recent accounts, and details of your trustees.

Once approved, you’ll receive a unique reference number that enables you to submit gift aid repayment claims and access HMRC’s digital services.

Step 2: Collect Gift Aid Declarations

No claim is valid without a completed Gift Aid declaration. These must confirm that the donor is a UK taxpayer and has paid sufficient income tax or capital gains tax in the same tax year. Acceptable formats include:

• Example Gift Aid declaration forms (paper or digital)
• Standing order forms that include Gift Aid consent
• Planned giving envelopes with declaration wording
• Verbal declarations (with confirmation in writing)

Declarations must be stored securely and linked to donation records.

Step 3: Gather Donor and Donation Information

Maintaining detailed records is essential. You’ll need to keep evidence of donations – including receipts, transaction reports, or copies of BACS payments – matched with the relevant declaration.

Also keep track of:

• Donor identity (full name and address)
• Donation amount and date
• Payment method (cash, card, BACS, contactless)
• Associated benefit (if any)

If you’re claiming under the Gift Aid Small Donations Scheme (GASDS) for donations via charity shops, collection tins, or bucket collections, no declaration is required, but limits apply, and clear internal records are still necessary.

Step 4: Register with Charities Online

To submit claims, register with Charities Online, HMRC’s digital portal. You’ll need a user ID and password from the Government Gateway. The portal is used for both standard Gift Aid and GASDS claims.

The online system allows you to upload a Gift Aid schedule spreadsheet, sometimes called a schedule spreadsheet, detailing each donation and linked declaration.

Use HMRC’s template or eligible software that generates files in the required format.

Step 5: Prepare Repayment Claim Details

Before submitting, review your repayment claim details carefully. Claims must reflect the correct accounting period or financial period, depending on your charity setup. Late or incorrect entries can delay processing or trigger a Gift Aid audit.

Double-check your:

• Total donation amount
• Number of donors
• Tax year alignment
• Declaration validity
• File formatting (CSV or XML)

Step 6: Submit and Track

Submit via Charities Online. Claims are typically processed within four weeks. Payment is made by BACS, so ensure your bank details are up to date.

For guidance or technical issues, HMRC’s charities helpline can provide support.