Gift Aid low? This could be why
Buzzacott has produced a blog looking at 8 common pitfalls that could be preventing charities from claiming all the gift aid that they could be.
- Gift Aid declarations must be prepared to meet various minimum requirements – common issues that can invalidate declarations include; insufficient wording, incomplete personal details and declarations not joining up with supporting records for the donation.
- Benefits (e.g. badges, event tickets, literature, commercial discounts) provided to donors in return for their donations must fall within certain limits. Calculating the value of these benefits can be complicated, particularly where diverse benefits are provided (such as in charity membership schemes).
- There are various approved schemes for specific scenarios such as donated goods in charity shops, charity auctions, and viewing charity property. However these schemes have their own separate (and in some cases lengthy) compliance rules which must be followed correctly. Make sure you are aware of and adhering to the rules of the correct scheme.
- Cash collections under the Gift Aid Small Donations Scheme must follow the specific control systems and record keeping procedures for that scheme.
- Donors must give their own money, which can create complications for sponsorship collections such as charity runs, for example. Charities with large amounts of sponsorship income may consider asking for this point to be confirmed by donors in the charity’s own template declaration.
- Sufficient records must be kept for a certain period in the event of inspections. The form of record keeping is not prescribed in legislation and depends on the scale of the charity and its donations.
- Many Gift Aid opportunities are missed. This may be because donations are erroneously thought not to qualify for Gift Aid (e.g. donations from overseas residents with UK income or donations with small benefits), or simply because the charity has not implemented a working Gift Aid system.
- Many charities can maximise the potential of Gift Aid, by planning, implementing and reviewing their current Gift Aid system.
Have a look at their website for the full blog. They are a firm of accountants, so the rest of the blog is about how they can help you maximise the opportunities, if you feel you need the extra support.
Fundraising ideas A-Z
The Pink Ribbon Foundation has produced a wild and wacky A-Z of fundraising ideas, to help you get out of the rut of cake sales or sponsored runs. With half a dozen ideas for each letter, this is plenty to keep you going for several years!
It’s designed to be for those raising funds for the Pink Ribbon Foundation themselves, but I’m sure they’ll not mind if you borrow it!