Gift Aid explained
What is Gift Aid?
Gift Aid is one of the easiest ways to make your donations go further. It means we can reclaim the basic rate of tax from HMRC. There is no extra cost to you and the process is simple – all you have to do is make a Gift Aid declaration.
What is a Gift Aid declaration?
It’s a statement by an individual taxpayer that they want a charity to claim from HMRC the tax paid on their donation. This is a great way to add 25 per cent to the value of your gift to RNIB without it costing you a penny more. For example, your £10 donation will be worth £12.50 and for every £50 gift, we will actually receive £62.50.
What does the Gift Aid declaration commit me to?
For every £1 you donate to RNIB in a financial year (from 6 April to 5 April the following year), you must have paid 25p in Income or Capital Gains Tax in the same financial year to qualify for Gift Aid.
If you have made a Gift Aid declaration we ask that you let us know if you cease to pay enough Income Tax and/or Capital Gains Tax to cover the amount we will claim from HMRC on the donations you make. Also, please let us know if you change your name or address.
Do I qualify for Gift Aid?
You must be a UK taxpayer and pay enough in Income Tax and/or Capital Gains Tax to cover the amount RNIB will reclaim in the tax year (from 6 April to 5 April of the following year). Inheritance Tax, Council Tax and VAT do not qualify towards Gift Aid.
How do I know if I pay UK Income or Capital Gains Tax?
You pay these taxes if:
- Income Tax is taken from your wages or salary before you receive your pay
- you pay tax after filling in a self-assessment form each year
- you have any taxable savings (in building society, for instance), or a pension plan or investment income
- you have paid any Capital Gains Tax on the sale of a property or some shares, for example. Inheritance Tax, Council Tax and VAT do not count as Income or Capital Gains Tax.
Why does it work out at 25 pence for every pound given?
Although basic rate tax is currently 20 per cent, the donation for £1 is treated as the net after tax from £1.25 (£1.25 minus 20 per cent is approximately £1). So we can reclaim that 25p.
What if I don’t pay UK Income Tax and/or Capital Gains Tax?
Then, unfortunately, you are not able to make a Gift Aid declaration. If you want us to make a note of this on your records do let us know by calling 0303 123 9999 (Monday to Friday 8am-8pm and Saturday 9am-1pm) or emailing [email protected]. You can also write to us at: Fundraising, RNIB, 105 Judd Street, London, WC1H 9NE.
What if I’m a pensioner?
You may still pay tax on a private pension plan or a savings account, or pay Capital Gains Tax if you sell property or shares. If so, you can Gift Aid too.
What if I’m a higher rate taxpayer?
RNIB can only directly claim back at the basic rate, but please complete and return the declaration anyway. As a higher rate taxpayer, if you declare your donations on your tax return, you can claim a rebate based on the difference between the higher rate and the basic rate when you fill in your self-assessment form.
What if I’m a lower rate taxpayer?
If you pay a lower rate (10 per cent or 20 per cent), RNIB can still claim back 25p for each £1 you donate, provided you pay enough tax to cover the claim in the tax year you make the donation.
What if I make my donations via CAF (Charities Aid Foundation)?
If you normally make donations via CAF, tax has already been reclaimed but please do fill in the form to cover any other donations you may make in the future or have made in the past.
What if I buy raffle tickets?
HMRC don’t treat raffle ticket purchases as donations, so Gift Aid doesn’t apply to them. But please do submit a declaration to cover any other donations you may make in the future or have made in the past.
Can Gift Aid be applied to events sponsorship?
Yes, in most cases – please see sponsorship forms for more details. If you are being sponsored or sponsoring someone else, for example someone taking part in an RNIB skydive or running the London Marathon, please Gift Aid eligible contributions. Remember each sponsor needs to include their home address and postcode for us to be able to reclaim the tax.
How long does the declaration last for?
After you sign up for Gift Aid it normally covers past, present and future donations. We can back-claim four years and we’ll continue to do so until you ask us not to, so please let us know if anything changes.
Who will have access to this information about me?
Only RNIB and HMRC. We won’t share it with anyone else.
What should I do if my tax status changes or I want to cancel my declaration?
Please let us know by contacting us in one of the following ways:
- Email: [email protected]
- Telephone: 0303 123 9999 (Monday to Friday 8am-8pm and Saturday 9am-1pm)
- Write to us at: Fundraising, RNIB, 105 Judd Street, London, WC1H 9NE
Let's create a world without barriers for all blind and partially sighted people
Generous supporters like you are the reason we are able to help so many people. But there is still a huge number out there who need our support. Simply by making a Gift Aid declaration, you could help change many more lives.