ONE IN FOUR ELIGIBLE TAXPAYERS DO NOT CLAIM GIFT AID WHEN DONATING, STUDY REVEALS
Released On 24th Jan 2022
Almost one in four taxpayers do not claim Gift Aid when giving despite being eligible to do so, a major study has revealed.
The research, published by the Charities Aid Foundation (CAF), shows that charities are missing out on hundreds of millions of pounds of revenue every year.
According to the latest statistics, Gift Aid is worth around £1.3 billion to the not-for-profit sector annually.
Under the scheme, charities and community amateur sports clubs (CASCs) can claim an extra 25p for every £1 donated at no additional cost, providing the donator has paid the same amount in Income Tax or Capital Gains Tax (CGT) in that tax year.
But the latest research shows that almost a quarter (23 per cent) of eligible taxpayers do not claim Gift Aid when giving.
It means that charities miss out on more than £500 million every year.
Commenting on the findings, Mark Greer, Managing Director of Philanthropy Services, Charities Aid Foundation, said: “Charities rely on mass giving and regular donations from generous individuals.
“But when an eligible taxpayer donates and forgets to tick the Gift Aid box, the charity misses out. Make sure the charity gets the full value of your donation by using Gift Aid.”
He added: “If you are a higher rate taxpayer you could also benefit from personal tax relief.”
The study comes after NCVO research revealed that charities will experience an increase in demand but a fall in donations in 2022.
For help and advice with related matters, please get in touch with our charity finance team today.
