Small Charitable Donations Bill Introduced Today


Charities will be able to claim top-up payments on up to £5,000 of small donations without needing Gift Aid declarations, under changes in a Bill before Parliament today.

Charity Donation

The new Bill will particularly help fundraisers and those collecting in buckets.

The Small Charitable Donations Bill will enable charities and Community Amateur Sports Clubs (CASCs) to claim a Gift Aid-style payment on small donations, where it is difficult to get a Gift Aid declaration. It will be known as the Gift Aid Small Donations Scheme (GASDS). Charities will be able to claim the Gift Aid-style top-up payments from HM Revenue and Customs (HMRC) from April 2013.

However, as Philip Griffiths, one of Mitchell Charlesworth's charities experts outlines, this scheme has the caveat, however, that charities must already have been registered for Gift Aid and must have made Gift Aid claims in the past.

The Small Charitable Donations Bill will enable charities and Community Amateur Sports Clubs (CASCs) to claim a Gift Aid-style payment on small donations, where it is difficult to get a Gift Aid declaration. It will be known as the Gift Aid Small Donations Scheme (GASDS). Charities will be able to claim the Gift Aid-style top-up payments from HM Revenue and Customs (HMRC) from April 2013.

Charities and CASCs will be able to claim a top-up payment on small donations of up to £20. Qualifying charities and CASCs will be able to claim up to £1,250 in repayment.

Chloe Smith, Economic Secretary to the Treasury, said:

"The Government is committed to encouraging charitable giving and building a more socially conscious society. Key to this is building a stronger culture of giving. The proposals in this Bill are part of that drive.

"The scheme will particularly help small charities that rely on bucket collections, where it is impractical to get the paperwork required under Gift Aid. They will now be able to claim a Gift Aid-style payment on small donations without the need to collect donors' details.

"The Gift Aid Small Donations Scheme will boost the income of charities, unlocking around £100m more funding for charities a year by 2015-16."

For more information about the Small Charitable Donations Bill, please contact our charities experts or complete a quick enquiry form.

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