Gift Aid rules set for reform

The government has taken a first step towards reforming the Gift Aid donor benefit rules.

It published a call for evidence on 16 July, with the aim of gather information on how the current rules are understood and applied, what barriers or problems they create for charities, and how they might be improved, ahead of a formal consultation setting out proposed changes later this year.

Under the existing rules, there are limits on the value of benefits – such as invitations to social events or memorabilia – that charities and community amateur sports clubs (CASCs) can give to donors and still claim Gift Aid on their donations.

HM Revenue & Customs also offers extra statutory concessions, not included in the rules themselves, which give charities and CASCs the scope to provide additional benefits to donors.

The call for evidence document, which can be seen here, said that many organisations had difficulty understanding the donor benefit rules and in some cases chose not to claim Gift Aid on donations rather than getting to grips and achieving compliance with the existing regime. The call for evidence closes on 9 October.

More Thompson’s charity specialists can provide expert advice to charities and CASCs to ensure their Gift Aid Scheme administration and to maximise the value of the benefit. For more information on how we can assist, please contact us.