The importance of the Gift Aid Scheme to charity fundraising has been underlined by the announcement Devon Air Ambulance Trust (DAAT) has benefited by over £250,000 since 2009 from claims made to HMRC on the sale of items donated to its shops.
Gift Aid increases the value of charitable donations from UK resident tax payers by allowing charities to reclaim the basic rate of tax on the gift at 25p for every £1 donated. A donation of £10 becomes £12.50 provided certain simple conditions are met and a declaration form is completed.
Martin Bell, DAAT’s Retail Director is responsible for the operation of 14 shops across the county. He said: “Gift Aid income is a simple, donor-friendly way of boosting revenue and we are striving to make more people aware of its importance. It has become a particularly significant part of our retail operation.
“We started claiming gift aid from our retail donated stock in 2009 and in the first year we submitted a claim to HMRC totalling £16,000. This has now grown to over £88,000 for last year’s claim.
“Now we have passed the £¼ million mark, you can see the significance for us in encouraging people not only to donate but to ensure they sign up for Gift Aid as well. It costs them nothing but means such a great deal to us.”
Donors must have paid income tax at least equal to the amount of tax reclaimed by the charity so those earning less than the personal allowance of £10,000 are not eligible. There is also provision for higher rate tax payers to claim tax relief on their donations.Follow