The government has allowed small cash donations of £20 or less to be treated as donations made under gift aid without gift aid declarations having to be collected. Key points here are:
- you can claim gift aid on such small donations up to £5,000 in the tax year to 5th April 2016 and £8,000 from the tax year to 5th April 2017
- there are some rules to follow and further details, together with the process for making claims, can be found at this link
Collections in community buildings
Your charity might be able to claim more on donations collected in a community building eg a village hall, church, mosque or synagogue. There must have been 10 or more people at the collection.
There is no limit on the number of eligible community buildings that a charity carries out its charitable activities in. From 6 April 2016 if your charity has 2 community buildings it could claim on up to £24,000 in one tax year, made up of:
- a maximum of £8,000 of small cash donations collected in each of the 2 community buildings
- a maximum of £8,000 of small cash donations collected elsewhere for example a street collection
As a further example, if a mosque operates from 2 buildings, gift aid on the Jumma collection from each building up to £8,000 (so the tax refund would be £2,000) can be claimed for each building. A separate record of the collections from each building should be maintained and the records should show when the donations were banked so that you can evidence the collections.
Please contact us on email@example.com if you need any further information or assistance with this.