Good news for small charities

Many small charities operate Gift Aid, but it’s fair to say that the scheme can be demanding of time and administration, especially when the amounts involved are small.

Good news then that from from April 2013 charities will be able to claim a Gift Aid style top-up payment on up to £5,000 of small donations per year, via the Gift Aid Small Donations scheme (GASDS).

Charities can only apply to join the new scheme, which is aimed at smaller charities and those who receive small cash donations, if they been operating Gift Aid for three years, and their compliance record is good.

The scheme will apply to small donations of up to £20, and is designed for when circumstances make it difficult to collect the donor details which are necessary for Gift Aid – for example bucket collections.

The maximum top-up payment is £1,250 per year, but the Charity must continue to operate Gift Aid as in order to claim under the new scheme donations must be matched with Gift Aided donations in a 2:1 ratio ie £2 of donation under the new GASDS scheme requires £1 Gift Aid donation.