Billions in Gift Aid goes unclaimed » Charity Digital News

Billions in Gift Aid goes unclaimed

Approximately £2.3bn in Gift Aid has been left unclaimed by charities, according to the National Audit Office.

While not all donations are eligible, charities could be losing out on hundreds of millions of pounds of tax repayments, according to the Charities Aid Foundation.  It is estimated that over £750 million of potential Gift Aid income goes unclaimed every year.

The 2014 State of the Not-for-Profit Industry report found that half of UK’s nonprofits are reporting no income from Gift Aid, raising questions about whether changes by HMRC to simplify Gift Aid processing have filtered down to charities.  In fact, some maintain that it has never been easier to manage Gift Aid and process claims, especially with the corresponding increase in online donations.

The report reads: “Changes were put in place by the HMRC last year to allow for easier processing of claims using several replacement options for the R68(i) form currently used to claim the basic income tax portion of a donor’s gift. These changes now allow organisations to submit claims online or through authorised fundraising software.”

According to DonorPerfect Online, fundraising software ensures that organisations are claiming Gift Aid whenever eligible.   This critical software improves accuracy, saves non-profits valuable time and places the responsibility of keeping up with regulatory changes at the feet of software providers rather than the non-profits themselves.

Jon Biedermann, Vice President of DonorPerfect Software said, “Small and mid-sized charity organisations are challenged with limited resources and staff.  Fundraising software like DonorPerfect will not only track more donations, but make sure all eligible donations are submitted effortlessly to HMRC.  This ensures the maximum amount of Gift Aid is claimed and processed, leaving no stone unturned.

Gift Aid click here, call 0800 088 7378, or email

Related reading

  • Mike

    For some charities the new online system is much harder. My charity can only easily report Gift Aid payments on paper.

  • Catherine C. Demetriadi MInstF

    This rather goes against the information given at the Charity Financial Directors meeting last week that more Gift Aid than eligible tax had been paid out. Confusion coming and going!

  • We have been trying for at least 6 months to set up gift aid for our charity. which helps disabled people to start up their own businesses. We have had over £6000 in donations mainly from one donor in the past tax year, but when our refund did not arrive after many months, HMRC admitted sending our expected refund to another charity by mistake as they had put a duplicate code number on ours and another charity. Now we have had to start all over again from the very beginning instead of HMRC just amending the code number. All the bureacracy makes you give up the will to live.

  • Please take a look at (a charity payments processor). Gift Aid reclaims for mobile-web donations are running at an average of 65%.