Donations can have a huge impact on the success of many charities and organisations. Gift Aid is a tax relief system which boosts donations to charity by allowing donors to receive an extra 25p for every pound they give, provided their donation meets certain criteria. However, not all donations are eligible for Gift Aid; read below to learn more about what types of donations don’t qualify.

What Types of Donations Aren’t Eligible?

Gift Aid applies only to monetary donations; any type of non-monetary contributions or services do not qualify for Gift Aid. This includes items such as clothing, food, furniture or anything else of value that has been donated in lieu of money. Another way to think about it is if you would like to be able to claim the additional amount as a tax deduction, then it must be in the form of money (cash or check) to qualify.

Additionally, donations given through third party organisations such as online fundraising sites, will generally not be eligible; this includes those made via text message or other payment platforms. Charities may ask donors who give through these types of channels if they would like to claim Gift Aid; however, it should be noted that this isn’t always possible.

Finally, as Gift Aid is a UK-based tax relief system, only donations made by UK taxpayers are eligible for the additional amount. Donations from individuals or organisations outside of the UK will not qualify, regardless of whether they’re made directly to a charity or via a third-party site.

Gift Aid can have a huge impact on donations and many charities rely on it as an important source of income. By understanding which donations don’t qualify for this tax relief system, you can ensure that your contributions receive the maximum benefit possible.

How Can I Ensure I Remain Compliant?

Managing donations can pose a major challenge to many charities with the compliance process frequently being a massive source of worry for financial teams and directors. Charities are seldom equipped with the financial know-how to streamline their own compliance and require the help of a charity accounting service. GoodtoGive can provide this service and have worked with a plethora of charity types to ensure they make the most of the resources that are available to them.

Contact GoodtoGive for Gift Aid Support

If you are looking to claim Gift Aid for a charity GoodtoGive can help you. Many charitable organisations have gained the tools required to streamline their finances and make the most of donations. To find out more about our gift aid management service and charity accounting services , get in touch with a member of our team at 020 7731 2041.