However, charities miss out on millions of pounds of Gift Aid each year because almost half of British taxpayers aren’t taking advantage of the Gift Aid scheme.

If you’re missing out, or you’re confused by Gift Aid rules and how they relate to taxes in the UK, we’ve put together this short guide to help you understand Gift Aid to make sure you can boost your support for the charities you love.

What is Gift Aid?

The Gift Aid scheme is run by the Government and allows charities to claim an additional 25% on donations made by UK taxpayers.

This means each £1 you give is worth £1.25, at no extra cost to you!

So, for a donation of £10, we could receive £12.50. A donation of £100 becomes £125. This additional income means we can do more for the animals.

How does Gift Aid work?

We can claim Gift Aid on your donation provided you have made a Gift Aid declaration with us. Once we have received both your donation and your declaration, we can make a claim and will receive the additional 25% from the HMRC.

For your donations to qualify, they must be no more than four times what you have paid in tax in that tax year. Because the Gift Aid comes directly out of the taxes you’re already paying, there’s a maximum amount each person can donate via the program. You can’t contribute more in Gift Aid than you pay in taxes.

Who can become a Gift Aider?

There are very few requirements to become part of the Gift Aid scheme. You don’t even have to be a British citizen. The only requirement is that you’re a taxpayer in the United Kingdom. That includes military members stationed abroad, residents, and non-residents who pay taxes.

You don’t necessarily even need a job, as Gift Aid can come from either income tax or taxes charged on capital gains.

Why is Gift Aid important?

Gift Aid is important for a few reasons. As a taxpayer it allows you to directly determine where you’d like your tax money to go. Whether you want to see more money put toward soup kitchens, supporting asylum seekers and refugees, or eliminating the worst suffering of animals on factory farms, Gift Aid allows you to do just that.

And, through the program, people are making their voices heard. Gift Aid is a huge source of income for a vast array of different charities. In the tax year ending in April 2023, £1.6 billion in Gift Aid was contributed to various organisations.

More and more people are taking part in the scheme, with the most recent tax year representing an increase of 19% in contributions over the year before.

What types of donations are eligible for Gift Aid?

While the Gift Aid scheme does have very few requirements when it comes to who is making the donation, there are several instances when Gift Aid not be claimed.

1. The donation cannot come with any conditions that could subject it to repayment.
2. Donations that are made via the Payroll Giving scheme, which allows contributions to be made to charities directly from your paycheck without taxes, are not eligible.
3. The Gift Aid scheme does not apply to donations that can be deducted from your taxes.
4. If the donation is part of an arrangement that involves the transfer of property to the charity, it isn’t eligible for Gift Aid.
5. The donation can’t be made on behalf of someone else or come from anyone else’s funds; this includes amounts raised through fundraising (such as a bake sale or sponsorship), although those individuals could claim themselves.
6. The donation must be from you as an individual not from a company.

Provided your donation doesn’t fall into any of the above categories, you’re good to go! If you’re unsure whether a donation you made, or are planning to make, is eligible for the program, we’ll help you sort it out.

How do I make a Gift Aid declaration?

We do our best to make signing up for Gift Aid hassle-free.

A Gift Aid declaration can be as easy as checking a box on a donate page. There are only a few requirements associated with the declaration, and most of them fall on the charity and not on the donor.

If you are making a donation by another means, such as a cheque or bank transfer, you can complete a declaration form. Simply contact us to request the form.

In order to claim your Gift Aid, charities must be sure that their declaration includes your full name and home address, their name, clear identification of which of your gifts the declaration applies to, and a final confirmation that the contribution should be treated as Gift Aid. If the declaration is missing any of these parts, then it won’t be valid.

Am I able to sign up for Gift Aid?

The only requirement to be eligible for Gift Aid is that you’re a UK taxpayer.

In order for a charity to claim Gift Aid on your donation, all they need is your agreement to claim and your address - it's that simple!

If you let us know you are eligible and happy for us to claim Gift Aid, we can even claim for donations you have made to us in the past, increasing your impact for animals even further.

What about past and future donations?

When you make a Gift Aid declaration with THL UK, you make a declaration which allows us to not only claim on the donation you are making at the time, but also on all future donations and all donations you’ve made in the past four years.

This means you only have to make one declaration, saving you time. It also means we can claim on all your eligible donations, maximising the amount we receive and enabling us to do more for the animals.

If you haven’t paid enough tax in any of the previous four years for us to claim Gift Aid on the donations you made during that time then please let us know.

How do I know whether I’m signed up for Gift Aid?

If you donate to a charity, they will be able to tell you whether or not you are registered for Gift Aid with them. If you aren’t, it’s a simple case of providing a declaration.

If you want to check whether you are registered for Gift Aid with us before you donate, do not hesitate to get in touch at donate@thehumaneleague.org.uk.

If you’re not yet registered but you’ve already donated, no worries! Gift Aid can be applied as many as four years later. Let us know if you would like to register and we can arrange this with you.

Can Gift Aid be claimed for higher-rate taxpayers?

Yes, those who are subject to higher tax rates are still eligible for the Gift Aid program. In fact, they are eligible for additional benefits, as they can claim back the difference between the tax they paid on the donation and what the charity received.

Can Gift Aid be claimed for Payroll Giving?

Unfortunately, Gift Aid cannot be claimed on the pre-tax donations made via the Payroll Giving scheme.

What if my donation isn't eligible for Gift Aid?

We’re happy to help you determine whether or not your donation is eligible for Gift Aid and, if it isn’t, talk you through other options for donating that may allow you to take advantage of the scheme.

What if I am not a UK taxpayer?

Unfortunately, in order to be eligible for Gift Aid, you must be, or be expecting to be, paying taxes in the UK. Otherwise your donation is not eligible.

You can still donate to charities based out of the UK, the donation just won’t come with the extra 25% provided via Gift Aid.

The Bottom Line

At the end of the day, Gift Aid provides the opportunity for you to contribute even more to the charities and causes you care the most about, delivering greater impact by making your donations go further.

Opting into Gift Aid when you donate to The Humane League UK helps us to keep doing the important work we love to do for animals.

If you’ve still got other questions, don’t hesitate to email us. We’re happy to help.