Gift Aid small donations scheme

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Introduced in April 2013, this new scheme should prove useful to eligible museums that get a lot of small cash donations. The scheme offers a Gift Aid-style top-up on donations but does not require the data collection or declaration associated with Gift Aid.

Donations of up to £20 per individual are eligible and donors do not have to be taxpayers. Only bank notes and coins are accepted; unlike Gift Aid, the relief is not valid for other forms of payment like debit or credit cards.

Organisations can reclaim 25p on every £1 for the first £5,000 in a financial year, making the maximum top-up payment £1,250.

To be eligible, charities must have a good recent history of reclaiming Gift Aid. You must have made a successful Gift Aid claim in at least two out of the last four tax years, without a gap of two or more tax years.

Donations can be reclaimed from multiple sites, but each site that generates donations must be classed as a “community building”.

The claiming process is similar to Gift Aid and can be done on the same form at the same time.

General links and resources

Template Gift Aid declaration forms: