Charities - Small Donations To Qualify For New Top-Up Payments
17 May 2012
Charities will be able to claim top-up payments on up to £5,000 of small donations without needing Gift Aid declarations, under changes announced on 9th May 2012 in The Queen’s Speech.From April 2013, charities will be able to use the Gift Aid Small Donations Scheme to boost their income and reduce their administrative burdens as they will not have to collect Gift Aid declarations on all small donations.
The top-up payment will be 25p for every pound collected in the United Kingdom, on up to £5,000 of donations, where the individual donations are £20 or less.
Chloe Smith, Economic Secretary to the Treasury, said:
“This scheme will be particularly helpful for small charities that rely on bucket collections, which can find it impractical to get the necessary paperwork that Gift Aid requires. Charities and Community Amateur Sports Clubs will now be able to claim a Gift Aid-style payment on small donations without the need to collect donors’ details.”
HMRC is consulting on the final policy until 25 May. Should you have any questions about this issue or any other issue affecting charities and amateur sports clubs, you should contact Sam Park at our Lurgan office or email@example.com