Gift Aid

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What is Gift Aid?

The Government allows charities to claim back tax on donations. This tax relief is called ‘Gift Aid’.

Gift Aid is great because it means charities get extra money added to their donations at no extra cost to the donor. For every £1 donated, the charity currently receives £1.25 when you add Gift Aid.


Can Gift Aid be reclaimed on all donations?

 

There are some exceptions where Gift Aid can’t be reclaimed:

If you’re not a UK taxpayer
Charities can claim back the basic rate of tax on donations because the donor has already paid the tax on their earnings. So if you don’t pay UK income or capital gains tax it can’t be reclaimed on your donation.


If you’re donating someone else’s money
Gift Aid can’t be reclaimed if you’re donating someone else’s money – for example, if you’ve sold raffle tickets or you’re making a donation on behalf of a company.


If you’re sponsoring a relative who has received a contribution towards their event costs
Gift Aid can’t be reclaimed if you’re sponsoring a relative who has received a contribution towards their event from their charity (for example, if your brother is doing an event overseas and the charity has paid for his air ticket).



What do I need to do to reclaim Gift Aid?

 

I’m making a donation to charity
Every time you make a donation through Virgin Money Giving we’ll ask if you’re eligible for Gift Aid – simply have a read through the information and tick the relevant box to let us know.

That’s it – if you’re eligible we’ll reclaim the Gift Aid from HMRC and pass it to your charity in full.


I'm donating my credit card cash back to charity
Cash back from your Virgin Charity Credit Card and Virgin London Marathon Credit Card can be donated, and therefore, provided you're eligible for Gift Aid, we'll reclaim the Gift Aid and pass it on to your charity in full.


I’m setting up a regular donation to my favourite charity
When you set up a regular donation through Virgin Money Giving we’ll ask if you’re eligible for Gift Aid - simply have a read through the information and tick the relevant box to let us know. We’ll apply this choice every month, so if your Gift Aid status changes (e.g. you start or stop paying tax) please update your regular donation.

If you’re eligible we’ll reclaim the Gift Aid from HMRC and pass it to your charity in full each month.


I’m sponsoring a fundraiser
When you sponsor a fundraiser through Virgin Money Giving we’ll ask if you’re eligible for Gift Aid - simply have a read through the information and tick the relevant box to let us know.

If the fundraiser has received a contribution from their charity towards their event costs we’ll also ask if you’re related, because in this situation you may not be eligible for Gift Aid even if you’re a UK tax payer.

If you’re eligible we’ll reclaim the Gift Aid from HMRC and pass it to the charity in full.


I’m a fundraiser
You don’t need to do anything. We’ll automatically ask your sponsors if they’re eligible for Gift Aid and pass the money to your charity in full.


I work for a charity
Once you’ve registered with Virgin Money Giving we’ll take care of everything for you. We’ll automatically ask donors if they’re eligible for Gift Aid, then we’ll reclaim the money from HMRC on your behalf and pass it over to your charity in full each month.

Because we’re not-for-profit we don’t charge a penny for processing Gift Aid – our 2% transaction fee to cover our running costs is taken from donations before Gift Aid is added.

Find out more about our fees and how we process Gift Aid and donation payments.



What about higher rate tax payers?

 

Charities can only reclaim the basic rate of tax as Gift Aid. If you’re a higher rate tax payer, you can reclaim an extra 20% of your donation (the difference between basic and higher rate tax) when you submit your tax return to HMRC.

Simply keep the donation confirmation emails we send you, or for cash back donations, screen print the cash back history page within your account, and attach these to your tax return if HMRC ask for supporting evidence.

If you have any questions about Gift Aid please visit the HMRC website, Direct.gov.uk or call our support team on 08456 10 10 45.