Gift Aid Recovery

Gift Aid RecoveryGift Aid is a way for charities or Community Amateur Sports Clubs (CASCs) to increase the value of monetary gifts from members (providing they are UK taxpayers) by claiming back the basic rate tax paid by the donor. It can increase the value of donations by a quarter at no extra cost to the donor. This means that for every £1 donated, you can claim an extra 25 pence. Gift Aid is worth nearly £1 billion a year to charities and their donors.

Recovering Gift Aid is straightforward providing you meet the following prerequisites:

  • Your organisation must be a Charity or a CASC - registering as a CASC may also allow Clubs to reduce their Council Tax bill
  • Your membership details must make it clear that a component of the fee is an optional donation
  • You must also offer a membership that does not include the donation element
  • Your Membership eForm must include a question that allows members to consent to their membership being treated as a Gift Aid donation
  • The donor must be a UK taxpayer and have paid tax at least equivalent to the amount to be recovered

What Does This Mean in Practical Terms?

Let's assume you meet the key prerequisites above and are now looking to start recovering Gift Aid. Let's further assume that your annual membership costs £50.

If you are a Charity, you can treat every penny of the £50 membership as a donation simply by adding a statement to that effect to your Membership eForm. Your members are required to agree that their donation can be treated as Gift Aid.

If you are a CASC, it become slightly more complicated; you could treat the whole £50 as a donation but you would then be obliged to offer a membership option that does not include the donation - which would effectively be free membership. A number of clubs get around this by having a membership that consists of a £10 fee and a £40 donation, and a further membership that only consists of the £10 fee. Most club members will be sympathetic to what you are trying to do and pay the normal fee of £50.

A small number of members may decide they would rather pay the £10 and you may need to have a strategy in place to encourage their philanthropic tendencies. For example, you might deem that any donation made to the club to a value of £40 or more confers honorary playing status for that season. The £10 membership allows affiliation to the club and use of club premises but does not carry any entitlement to play for the club - which is by invitation only. As long as you are clear and non-discriminatory in your approach there would be no issue as far as Gift Aid is concerned.

Our Gift Aid Recovery Service

We can help your club recover Gift Aid, offering an end-to-end service with full support. We can:

  • Help you to ensure that your memberships and other qualifying products are suitable for Gift Aid and properly set up to recover it
  • Ensure that your members have properly opted into Gift Aid
  • Submit a full and properly completed claim to HMRC and recover the funds on your behalf

What Does it Cost?

We charge 5% of any Gift Aid recovered from HMRC.

For every £1000 of Gift Aid income you can recover up to £250, less our fee of 5% (£12.50).

How Do We Get Started?

Email us, either through your usual contact or via the 'Contact Us' option at the top of the page. We will need to check a few eligibility details, tweak your Products and that's about it; sit back and wait for us to recover up to 25% of your income.


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