Umbrella bodies review Gift Aid Small Donations Scheme

A review of the effectiveness of the Gift Aid Small Donations Scheme (GASDS) has been launched by NCVO, the Institute of Fundraising, and the Charity Finance Group after HMRC published data showing that the scheme has raised only £7m for charities.

The review includes a survey of voluntary organisations, open until 27 June, to find out whether they have made a claim under the GASDS and what problems and barriers they have encountered. Information collected will be used to lobby for changes to GASDS to make it easier for charities to use. To complete the survey please click here: https://www.surveymonkey.com/s/23LRGFW

The GASDS allows charities to claim a gift aid-like relief of up to £1,250 a year on £5,000 of small cash donations without the usual gift aid paperwork. However, to be eligible to make a GASDS claim, a charity must:

• already have claimed gift aid for two of the last four years;
• claim gift aid in the same year as making a GASDS claim;
• have a good record with HMRC; and
• not be “connected” to another charity by having the same trustee board.

NCVO, the Institute of Fundraising, and the Charity Finance Group have previously raised concerns that these conditions are too onerous and may prevent charities from making claims.

For further information on charity donations,fundraising and gift aid eligibility matters please contact our charity law team on 01895 207809 or email charities@ibblaw.co.uk.