Gift Aid is a scheme which allows churches and charities to reclaim tax paid by a donor on eligible donations, and in so doing effectively increase the amount of the donation.
Gift Aid allows you to increase every eligible donation to your church by 25% (25p on every £1 donated) at no extra cost to either the donor or your church.
To illustrate: let’s say a basic rate tax payer earned £12.50 which was taxed at 20% leaving the tax payer with £10 after tax income. The tax payer then puts the £10 into the church’s collection plate. If the tax payer Gift Aids the donation of £10, the church can reclaim that £2.50 tax from HMRC and add it to the donation. So, for every £10 the tax payer gives to the church, the church gets £12.50 (£10 from the tax payer and £2.50 from the taxman).
For full details on Gift aid visit: http://www.parishresources.org.uk/giftaid/
Gift Aid Small Donation Scheme
The Gift Aid Small Donations Scheme (GASDS) allows parishes to claim a Gift-Aid style repayment to be received on small cash and contactless donations of £30 or less (from April 2019, in tax years prior to this the limit was £20) up to a threshold of £8,000 of donated income per tax year per church. (The £8,000 threshold applies from the 2016/17 tax year – the limit for prior years was £5,000)
For full details on GASDS visit: http://www.parishresources.org.uk/giftaid/smalldonations/