One of the key benefits of applying for CASC status is the ability to qualify for Gift Aid from individual donations.
For every £1 donated you can claim 25p tax relief, so a donation of £100 would be topped up to £125 with Gift Aid.
The Gift Aid element of that would need to be claimed back separately.
*Donors MUST have paid enough tax to cover the tax reclaimed by CASC or they might find HMRC asks for that at a later date.
Donations that qualify for Gift Aid include:
- Direct Debit
- Credit or Debit card
- Postal order
- Standing order
Clubs must ensure they obtain a Gift Aid declaration from every donor prior to making a claim.
Make sure you comply fully with that constitutes a Gift Aid declaration by either downloading one of HMRC’s templates (see section on Using an HMRC model Gift Aid declaration) or double-checking against their checklist.
Gift Aid and Benefits for Corporates:
Donations from companies do not qualify for Gift Aid but donors can benefit from tax relief on the donation, depending on which tax rate they are on.
Choosing an authorised official
A CASC club will need to nominate an official for Gift Aid purposes before making a Gift Aid claim, so they can submit repayment claims and receive money on behalf of your CASC.
Making a Gift Aid Claim
You can make a claim via the Charities Online service or by posting back a ChR1 form (which you request by contacting HMRC).
Vital Record Keeping
Keeping accurate records relating to Gift Aid is very important to avoid any future misunderstandings and to be able to provide an audit trail.
Your CASC needs to keep:
- All Gift Aid declarations and proof that the donor has been told that they must pay at least as much UK Income Tax and/or Capital Gains Tax (for the tax year that they donate), as all the charities and CASCs that they donate to will reclaim on their gifts.
- Cancellations of Gift Aid declarations.
- Benefits provided to donors.
For more information on Gift Aid, please see the HMRC Website