Gift Aid

Under Gift Aid, HM Revenue and Customs (HMRC) will usually top up every £1 given to the British Heart Foundation by 25p. Here are some frequently asked questions around Gift Aid:

How does it work?

As a UK taxpayer you and your sponsors will pay tax on your earnings, savings or pensions, at either a basic rate of 20% or a higher rate of 40%.

If you make a donation to charity, this donation will come from money that you have already paid tax on. As a charity, we can reclaim this tax back from the Government.

This means that if you raise a £100, and you and your sponsors tick the Gift Aid box, it’s becomes £125.

For donations to be eligible for Gift Aid, you need to be a UK taxpayer and understand that if you pay less Income Tax & Capital Gains Tax in the current tax year, than the amount of Gift Aid claimed on all of your donations across all charities. It is your responsibility to pay any difference and understand that Gift Aid is reclaimed by the BHF from the tax you pay for the current tax year.

 

Can Gift Aid be claimed on all the money I raise?

We can only claim Gift Aid on gifts of money from individuals where no reward is received in return for making a donation. For example, it can’t be claimed when making a donation in return for tickets (raffles, events and auctions) or goods and services such as when organising a bake sale or getting your friends and neighbours to pay you for walking their dog. This is because you are getting something in return for your donation.

We can’t claim Gift Aid on a donation made on behalf of a company. You can only make Gift Aid declarations on your own taxpayer status when spending your own money. However, a company can claim tax relief on the donation when donating directly to the charity.

If the donation amounts for the whole form are all the same (e.g. £2.00) they may be considered payments for goods received or competition entries and therefore are not eligible.

The Gift Aid form is for individual donations only so please avoid recording the total amount you have raised from your event on the form. For example, if you raise £100 at your event, you can’t send in a form with your name and £100 in the amount donated box.

However, there is no upper or lower limit to Gift Aid. We can reclaim the tax on any amount, so you and your sponsors can fill in the Gift Aid form for any individual donation made, large or small.

 

Do I have to use the sponsorship form you’ve provided?

Yes please. We have tried to provide you with a form that helps you and us claim Gift Aid properly. Please do not design your own, as the Gift Aid form is a legal document and must include certain information to be valid.

Once the form is filled in return it to:

British Heart Foundation

Lyndon Place

2096 Coventry Road

Sheldon

B26 3YU

 

Can I fill it in for my sponsors?

No. Please do not fill in donation details on behalf of your sponsors. For legal reasons, the Gift Aid declaration needs to be in the handwriting of the person ticking the Gift Aid box. For the same reason, all details need to be handwritten and not typed.

Remind your sponsors that Gift Aid means UK taxpayers can add an extra 25% to their sponsorship at no extra cost to them.

 

What details do I need to fill in?

To allow us to claim this essential additional income, your sponsors must:

•          Tick the Gift Aid box on your sponsorship form when they sponsor you (but only if they are tax payers

•          Write their full name and title (minimum of initial and surname).

•          Include their home address (house number/name and postcode is the minimum requirement we need to be able to claim Gift Aid).

•          Fill in the 'date paid' box on the sponsorship form when they give you their donation.

•          Avoid ditto marks. If a number of sponsors live at the same address, they must each complete the address and postcode fields.

•          The name, amount, address and postcode fields must be filled out in the sponsors own handwriting.

•          Donate individually. You cannot make joint donations, for example from Mr and Mrs Smith, as the HMRC needs to determine who the taxpayer is.

•          The Gift Aid tick box also has to be ticked, not crossed (see the sample filled in at the top of the Gift Aid form).