GASDS : Claim Gift Aid on small donations
Gift Aid is a valuable source of extra revenue as it allows charities and community amateur sports clubs (CASCs) in the U.K. to claim an extra 25p for every pound donated by taxpayers — at no cost to the organization or the individual. This is a government tax relief scheme and certain conditions apply.
The Gift Aid Small Donations Scheme (GASDS) allows charities and CASCs to claim Gift Aid on cash donations that are £20 or less — even without a Gift Aid declaration by the donor. The donations must be made in cash, but bills or coins may be in any currency.
How much can be claimed?
GASDS allows claims up to:
- £2,000 in a tax year, which is £8,000 worth of donations (the tax year is from 6 April to 5 April)
- £1,250 in a tax year, which is £5,000 worth of donations, for years preceding 6 April 2016
Who's eligible to make a claim?
In order to claim GASDS, your charity or CASC must meet certain criteria. For example, you must have claimed regular Gift Aid:
- In the same tax year you want to claim GASDS
- In at least two of the last four tax years (although there can't be a two-year gap between the claims)
- Without receiving a penalty from HMRC in the last two tax years
What are the limitations?
You can't claim GASDS if it's more than 10 times your Gift Aid claim. For example, if you've received £100 of Gift Aid donations in the same tax year, you can't claim more than £1,000 worth of donations through GASDS.
In addition, you can only claim on cash donations that have been both collected and banked in the U.K. after 6 April 2013.
Claims can't be made on:
- Membership fees
- A £20 portion of a larger gift
- Any donations made with a Gift Aid declaration
If your collection takes place in a community building — such as a place of worship or community hall — then you may be able to claim more. The caveat is that there must have been at least 10 people present at the collection and the community building must be open to the public.
Can we claim GASDS if we're connected to another charity or CASC?
If you're connected to another charity or CASC, you can claim GASDS if you share the £8,000 limit on donations equally (£5,000 for claims before 6 April 2016).
Has your charity merged? You may be eligible to take on the other charity's record of good claims. Visit GOV.UK for details.
Do we need to keep records?
Records relating to GASDS claims must be kept for six years from the end of the tax year to which they relate. Ideally, two people should check and count the cash collection.
You'll need to record:
- The total amount of cash collected
- The date the collection took place
- The date the collection amount was paid into a bank account
For community building collections, you'll also need to record:
- The address of the community building, including the postcode
- The type of event at which the collection was held (for example, a fair or fun run)
- The number or estimated number of people who attended the event
How do we make a claim through GASDS?
As with Gift Aid, GASDS may be claimed through Charities Online with either a spreadsheet of your claims or with eligible software. The caveat is for claims of more than 1,000 donations, which must be done with eligible software. To claim by post, use form ChR1 — which you can get from the Charities Helpline.
GASDS claims must be submitted within two years of the end of the tax year in which the donations were collected.
MissionBox editorial content is offered as guidance only, and is not meant, nor should it be construed as, a replacement for certified, professional expertise.
GOV.UK: Claiming a top-up payment on small charitable donations (2016)
GOV.UK: Claiming Gift Aid - small donations scheme (2016)