Gift Aid enables charities to claim an extra 25p for every £1 donated by individuals at no extra cost to themselves.
A donor needs to make a Gift Aid declaration to enable your church to claim and your church needs to be registered with HM Revenue and Customs (HMRC).
The Government offers us two schemes to help charities maximise their income. The Gift Aid scheme we are familiar with. The newer, Gift Aid Small Donation Scheme (GASDS) is a Government spending measure rather than a tax relief.
The scheme is explained in the information sheet. The benefits of the scheme to your church are outlined in the Gift Aid Leaflet. To join, please complete the application form after PCC approval has been given.
Parishes are encouraged to join the Gift Aid Lite scheme which is approved by HMRC and provides administration and claiming of donations recevied bia Gift Aid and GASDS. This is a free service to all churches in the Diocese of Manchester using a web-based donations management software programme. The diocese provides and supports the programme and pays the monthly licence fee.
Manchester Diocese also operates an Audit Inspection Scheme in liaison with the HMRC, as well as providing training, assistance and updates for Gift Aid secretaries and treasurers. Our aim is to keep your church up to date with its Gift Aid claims, with our help and support.
For help, further information or to join the scheme, please contact one of the Gift Aid Team.
Gift Aid Small Donation Scheme
The Gift Aid Small Donations Scheme (GASDS) is intended to deal with small cash donations without the need for declarations. It should be viewed as complimentary to and not replacing the need for Gift Aid.
This scheme enables churches to claim back tax on loose cash donations without the need for any signed declaration from a donor. The scheme is subject to various conditions but does increase your income.
The Small Donation Scheme can currently be used to claim tax relief on up to £8000 of donations per year (a maximum of £2000 tax relief). There are specific requirements for recording and vestry/cash sheets must be completed. It is essential to keep accurate audit trails.
The way claims are made and what can be claimed varies depending on whether you are a single church or have multiple churches. Appropriate tracker sheets are available to keep track of donations in your particular context. Please see the appropriate guidance below.
Gift Aid Lite User Guides
- GAL0 - List of guides
- GAL1 - How to log in and log out
- GAL2 - Creating and updating your User Profile
- GAL3 - Donor record guide
- GAL4 - Creating a backup file & exporting donors and donations
- GAL5 - Choosing and Adding Purposes
- GAL6 - Quick Add donor and gift
- GAL7 - Creating a GASDS donor record
- GAL8 - Entering one off, regular and anonymous GASDS donations
- GAL9 - Aggregate donations
- GAL10 - Reconciling a summary of your Gift Aid claim before submitting your authorisation form
- GAL11 - Quarterly claims previously submitted summary report
- GAL12 - Entering one off, regular and anonymous Gift Aid donations
- GAL13 - Creating a QR code for your Church
- GAL14 - Creating and managing regular donations
- GAL15 - Managing your envelope donors and their numbers
- GAL16 - Setting up your SmartFilters
- GAL17 - Importing donations directly from an electronic bank statement
- GAL18 - Importing donations from a spreadsheet
- GAL19 - Creating and printing thank you letters
- GAL20 - Creating a Gift Aid donor record
- GAL21 - Changing ending a Gift Aid declaration
- GAL22 - Changing a donor's address
- GAL23 - Using and promoting the 'Payter' Contactless giving device
- GAL24 - Enabling Contactless donations to be claimed via Gift Aid using the 'Payter' device
- GAL25 - Dealing with regular users of one-off Gift Aid envelopes
- GAL26 - Setting up a new easyfundraising account
- GAL27 - How to make an online donation via a Church’s easyfundraising account