gift-aid-faqs

What is Gift Aid?

Why is Gift Aid a great idea? 

Gift Aid is a great idea because it means you can increase your donation to charity by an extra 25% and it won’t cost you any extra. This additional income really does make a difference. Imagine if everyone added Gift Aid! That extra 25% on top of your existing donation goes a long way, so it’s a great idea to add Gift Aid to your donations if you are a UK tax payer. 

How does Gift Aid work? 

When a UK taxpayer kindly donates money to Pledge, tax has already been paid on that money. Therefore, we can claim this money back from HM Revenue & Customs (HMRC) at no extra cost to you! 

What do I have to do? 

In order to qualify for Gift Aid, you will need to be a UK taxpayer. Your donations will qualify, as long as they’re not more than 4 times what you have paid in tax in the current tax year. 

You need to make a Gift Aid declaration for the charity to claim for you. Luckily, when you sign up to Gift Aid through the Pledge website, you fill in a form that acts as a declaration. 

How exactly is Gift Aid calculated? 

Gift Aid is calculated using an amount equal to basic tax rate (20%) on the amount of the donation, plus basic rate tax paid by the taxpayer on that specific donation. 

For example: You give a gift of £100 to Pledge – we claim Gift Aid to make your donation £125.