Most have us have probably heard of Gift Aid or noticed a little tick box when donating to charity. But what does it really mean?
In short, what you need to know is Gift Aid is a fantastic scheme that allows you to make your donation worth 25% more, at no extra cost to you!
At Northern Ireland Chest Heart and Stroke (NICHS), we are always on a mission to make a positive difference in the lives of people affected by chest, heart and stroke conditions and everyone across Northern Ireland through our care, prevention, research and campaigning work.
In this blog post, we'll explore the ins and outs of Gift Aid, how it works, and how you can unlock its power to help support our work!
What is Gift Aid?
Gift Aid is a tax relief for charities in the UK to increase donations – at no extra cost to the donor.
When we receive a donation from you, , if you are a UK taxpayer and you tick the Gift Aid box, with your permission we can reclaim an extra 25% from the Inland Revenue, as it’s tax you’ve already paid on that donation.
So, a £10 donation processed with Gift Aid becomes a £12.50 donation.
It's a powerful way to make your contributions go further in the fight against chest, heart, and stroke conditions.
Watch this quick video where money saving expert Martin Lewis explains why everyone should ‘say yes’ to Gift Aid on charity donations!
What do I need to do?
All you need to do is #tickthebox on our Gift Aid declaration form and provide some basic personal details, and then we can claim 25p for every £1 given.
Once you have given your permission by filling in the Gift Aid declaration form, there is no need for you to do anything else, unless you stop paying tax – in which case let us know.
It's a one-time effort that makes a lasting impact.
Who qualifies to donate through Gift Aid?
In order for us to claim Gift Aid on a donation, you must have paid UK income tax or capital gains tax that tax year, at least equal to the tax that the we will reclaim on your donations.
Even if you're not currently employed, you can still participate in Gift Aid as long as, at some point during the tax year in which you make the donation, you've paid enough tax on any of the following:
- Personal or occupational pension.
- Stocks or shares.
- Bank or building society savings accounts.
- Rental income.
- Overseas or UK investment dividends.
I am a Higher Rate Tax Payer – what does Gift Aid mean for me?
If you're a higher rate taxpayer, Gift Aid provides an even more substantial benefit!
You can claim the difference between the top rate of tax you pay and the basic rate on the total value of your donation. This additional tax relief can be claimed through your self-assessment tax return or by requesting HMRC to amend your tax code.
Here's an example of how it works for higher rate taxpayers:
Let's say you generously donate £100 to NICHS, and we claim Gift Aid to boost your donation to £125. Since you pay 40% tax, you can personally claim back £25.00 (£125 x 20%). This means that your actual cost for the £125 donation is only £75.00. It's a win-win situation that benefits both you and our charity.
Gift Aid is a remarkable way to amplify the impact of your donations to Northern Ireland Chest Heart and Stroke. By simply #tickingthebox on the Gift Aid declaration form, you can help us raise vital funds to support those affected by chest, heart, and stroke conditions in our community.
Your support is invaluable, and together, we can continue to make a positive impact on the lives of those in need. Thank you for being a part of our mission!
