Billions in Gift Aid goes unclaimed

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

Chloe Green | 13th Feb 15

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 ndiplock@donorperfect.co.uk