Small Donations to Charities

It has been confirmed in the Queen’s Speech that charities will be able to claim top-up payments on up to £5,000 of small donations without needing to obtain Gift Aid declarations.

The Scheme, called the Gift Aid Small Donations Scheme, should boost charities income and also reduce their administrative burden. From April 2013 charities will be able to claim the Gift Aid-style top-up payments from HMRC without needing to get a Gift Aid declaration from donors. The top-up payment will be 25p for every pound collected in the UK. The maximum amount of donations on which the top up can apply will be £5,000, where the individual amounts of donations are £20 or less. Chloe Smith, Economic Secretary to the Treasury, said: ‘This scheme will be particularly helpful for small charities that rely on bucket collections, which can find it impractical to get the necessary paperwork that Gift Aid requires. Charities and Community Amateur Sports Clubs will now be able to claim a Gift Aid-style payment on small donations without the need to collect donors’ details.’