Benefits to donors

Gift Aid and museums - Gift Aid on admissions - Benefits to donors - Gift Aid tips - Gift Aid small donations scheme - Resources

HMRC imposes limits on the benefits that can be offered to those who donate. The maximum benefit value is capped at:

  • 25% of a small donation – up to £100
  • £25 for a medium donation – between £101 and £1,000
  • 5% of a large donation - £1,001 or over

Benefits are items or services provided by the charity in connection with the donation. Acknowledging an individual donor’s generosity through naming rights, for example, does not count as a benefit; but naming the company they work for would be a benefit because it would count as advertising for the company.

Membership, subscription and Friends schemes may be eligible for Gift Aid but only under certain conditions. It is advisable to speak to a licenced professional to ensure your membership or Friends scheme is eligible.

Benefits for large donations of £1,001 or more made on or before 5 April 2011 are capped at £500; but since 6 April 2011 this limit has been raised to £2,500.

This is a positive step forward, as it enables institutions to recognise generous donors by, for example, giving them the use of the venue for a private event, without the risk of losing Gift Aid on the donation.

General links and resources

Template Gift Aid declaration forms: