TAX-EFFICIENT GIVING
Donating through Gift Aid means as a charity, we can claim an extra 25p for every £1 you give. It will not cost you any extra.
- For a basic-rate taxpayer, this adds approximately 25% to the value of any gift made under Gift Aid. This means that charities (and community amateur sports clubs, CASCs) can claim an extra 25p for every £1 donated.
- Higher-rate taxpayers can claim income tax relief, above and beyond the amount claimed directly by the charities. For example if a higher-rate taxpayer (e.g. at 40% tax) donates £100, the charity can claim Gift Aid to make the individual donation £125. The higher-rate taxpayer can then claim back the difference between the base rate that is applied for the charity (20%) and the higher-rate (40%), which in this case is £25.00 (£125 x 20%).
Corporate donors can claim tax relief by deducting the value of their donations from their total business profits before they pay tax.