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Gift Aid - What is it?
Gift Aid is one of the simplest and most effective ways of giving to HAFC. Using Gift Aid means that for every pound you give, HAFC will receive an extra 28 pence from the Inland Revenue. This means that a £10 Gift Aid donation, is worth £12.80 to us - imagine what a difference that could make, and it doesn't cost you a thing.
On top of this, higher rate taxpayers are eligible to reclaim as much as £23 from the taxman for every £100 donated, by including details of their Gift Aid donations on their Self Assessment form. (For details of how this is calculated, see the section Gift Aid - How does it work below).
Next time you give a donation to HAFC, make sure you use Gift Aid. Look out for the Gift Aid It logo or tick box on the donation form or appeal, complete the declaration and pass it to a club official. Alternatively, download a declaration form here and now, fill it in and pass it to a club official. Click here to view or download a Declaration Form for Gift Aid.
Gift Aid - How does it work?
Gift Aid is surprisingly easy to use. Gift Aid can apply to donations of any amount, large or small, by cash, cheque, postal order, direct debit, standing order, debit or credit card or even in a foreign currency (including the euro).
If you are a UK taxpayer, all you have to do is give HAFC a simple Gift Aid declaration. This might involve completing a short form or just giving basic details to an HAFC official over the phone or the internet. Click here to view or download a Declaration From for Gift Aid.
What's more - one single Gift Aid declaration can apply to all past donations you have made (since April 2000) and to all future donations you make.
As a higher rate taxpayer looking to reclaim tax from your donation, all you have to do is remember to include details of your gifts on your tax form. Also, from April 2003, higher rate taxpayers will be able to reclaim tax relief from donations paid to HAFC both during the previous tax year and during the current tax year, that means the relief is paid that much quicker.
CASE STUDY
This case study shows how Gift Aid is calculated:
Katie Jones makes a donation of £100 to her favourite cause. The club grosses up the value of the gift, and multiplies the donation amount by 28% to calculate the tax it can reclaim, as follows:
£100 (donation) x 22 (Basic rate of income tax) = £28 tax relief to CASC
78 (100 minus the basic rate)
If Katie is a higher rate taxpayer, she will want to calculate the tax relief she can claim. She is eligible to claim the difference between the higher rate of tax (40%) she has paid, and basic rate tax (22%) reclaimed by the charity (40% – 22% = 18%). Therefore, Katie simply works out the gross value of her gift to the CASC (£100 + £28 = £128) and calculates 18% of that figure to calculate the tax relief she is entitled to reclaim:
£128 (gross donation) x 18% = £23 tax relief to donor
So, to put it simply, Katie reclaims 23% of the cost of her initial £100 donation.
Gift Aid - What does Gift Aid look like / What should I look out for?
Hawkwell Athletic are introducing the Gift Aid scheme across the club for the first time in 2006. The person in charge of administration for the team you are involved in should make you aware of the Gift Aid process and ask you to complete a Gift Aid form. If this has not happened, please download the gift aid declaration form here and send it to us at the address provided.
The Giving Campaign has recently launched a new brand for Gift Aid aiming to increase its use by fundraising charities and CASC’s and to make it more familiar to donors. So, look out for the new recognisable logo, it looks like this:
Gift Aid - Do I qualify?
Providing you pay as much tax (income and/or capital gains) as the charities and CASC’s will be entitled to reclaim on your donations in the same financial year, you are entitled to use Gift Aid. For example, if you wish to Gift Aid your charitable donations that total £100 in one year, you will need to have paid at least £28 in to the taxman in respect of that tax year.
For further information on Gift Aid legislation, visit the Inland Revenue website.
Further Information
Further information on Gift Aid is available from the Inland Revenue website, and on the IR hepline 0845 3020203. Also, see Inland Revenue Leaflet IR65 - Giving to Charity by Individuals or Inland Revenue Leaflet IR64 - Giving to Charity by Businesses.
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