Frequently Asked Questions
Resources: Gift Aid declaration form
What is Gift Aid?
Gift Aid is a simple way to increase the value of your gift to Beating Bowel Cancer – at no extra cost to you. If you pay tax in the UK, Beating Bowel Cancer can reclaim the basic rate tax on your gift. So, if you donate £100, it is worth £125 to the charity.
Do I qualify for Gift Aid?
In order for Beating Bowel Cancer to reclaim the tax on your donations you must be a UK taxpayer and understand that if you pay less Income Tax and/or Capital Gains Tax in the current tax year than the amount of Gift Aid claimed on all your donations it will be your responsibility to pay the difference.
How do I sign up for Gift Aid?
The process is simple – all you have to do is make a Gift Aid declaration. If you are donating online we need your name, home address and a tick the Gift Aid declaration box. Or contact us on 0845 0719 301 and we’ll send you a form through the post. If you wish, you can Gift Aid over the phone and we will then write to you to confirm this.
What is a Gift Aid declaration?
A Gift Aid declaration is a statement by an individual taxpayer that they want a charity to receive the tax paid on their donation back from the government.
Can I claim gift aid on the funds I have raised?
For a donation to be eligible for gift aid it must be a donation by an individual and not the proceeds of a collection, raffle, sale or other similar activity. If you are donating the proceeds of these activities via our website or other websites such as Just Giving or Virgin Money Giving, you cannot tick the Gift Aid box.
Donations by companies are not eligible for Gift Aid.
If you are being sponsored to do an event, such as cycling, running or other challenges, then yes, your supporters can opt to gift aid their donations, if they themselves are eligible. We must have a valid Gift Aid declaration form from each of your sponsors. Make sure they fill out their first name or initials, last name, full home address and postcode and tick the Gift Aid box on the sponsorship form.
Be careful however, if you are undertaking a trek, tour or challenge event (including parachuting) where the charity is paying towards the cost of the event, then special rules apply. You should make yourself familiar with the Gift Aid Benefit rules outlined below. The charity will also need you to confirm your understanding of the rules by signing a declaration form.
How do I make a donation with gift aid?
Simple. Make your donation online, by telephone or post and tick the Gift Aid Box. Remember, a donation must be made from a personal bank or building society account. We can’t claim Gift Aid on donations from company accounts.
How long does a Gift Aid Declaration last?
To simplify matters for both you and Beating Bowel Cancer, the declaration wording covers present, future and past donations. We can back-claim four years and we will continue to claim until you tell us otherwise, so long as you are eligible.
Once you have become a Gift Aid donor, you must let us know if you stop paying tax or if you change your name/address so that we can update our records.
What do I do if my tax status changes or I want to cancel my declaration?
To let us know if you stop paying tax or wish to cancel your declaration, please call us on 0845 0719 301
I’m a higher rate tax payer, does that affect Gift Aid?
If you are a higher-rate tax payer you can also claim additional tax relief. For higher rate tax payers (paying tax at 40%) this works out as 25p for every £1 you donate and for the highest rate tax payers (paying tax at 45%) this works out as 31.25p for every £1 you donate. You could claim this via your own personal tax return.
You should however carefully consider whether it is appropriate to gift aid sponsorship to someone who is closely connected to you, for example:-
- a wife, husband or civil partner
- a brother, sister, parent or grandchild
- the wife, husband or civil partner of a relative
- See the Gift Aid Benefit rules below for additional information.
What are the Gift Aid Benefit rules?
A donation is always given freely. If you donate money with or without gift aid the charity does not offer you anything significant in return, except of course, to say “thank you”.
There are exceptions however. If the charity is paying for the cost of a fundraising event you are participating in, this is classified by HMRC as a ‘benefit’ to you. Under these circumstances people ‘connected’ to you (refer to the list above) cannot gift aid their sponsorship. They can sponsor you, they just can’t gift aid it.
We will naturally also ask you to raise enough money to cover the charity’s costs and this ‘minimum sponsorship’ also cannot be gift aided. It is your responsibility to make sure you do not gift aid this money. You can discuss the detail with our events team who are there to support you.
You will be asked to sign a declaration to confirm your understanding of these rules as and when you sign up for an event that the charity is paying for.