As many of you know, Gift Aid is a great government scheme that means charities can claim back 25p for every £1 donated by an eligible individual. What you may not know is that charities are also able to claim Gift Aid as part of a crowdfunding campaign. For eligible organisations, it’s a really simple process and could help you raise a significant amount more for your cause. For example, if your crowdfunding campaign raises £10,000, you could increase that by up to £12,500 with Gift Aid!
Do pledges to my project qualify for Gift Aid?
You need to make sure your organisation is eligible to claim gift aid. To claim Gift Aid, HMRC must recognise you as a charity or a community amateur sports club (CASC); AND
If your organisation is eligible, you must determine if each pledge (including pledges on rewards if applicable) meets the qualifying criteria for Gift Aid in accordance with HMRC guidance, and only seek to claim Gift Aid on such pledges. Straightforward donations will usually qualify, but the receipt of a reward by a backer or a connected party may affect the eligibility of a pledge for Gift Aid.
You are responsible for this. HMRC provides guidance on both, which may help you with this. Please seek advice from an appropriately qualified professional if you are unsure in respect of these matters.
Can Gift Aid Be Added Retroactively to a Pledge?
Unfortunately, Gift Aid cannot be applied retroactively to a pledge. However, there are two options available:
Request a Refund and Re-Pledge
If you realise Gift Aid wasn’t added when the pledge was made, you can request a refund and process the donation again with the Gift Aid option selected.
Donors can request a refund via the 'Manage Pledges' section on their Crowdfunder profile or by contacting the Crowdfunder support team to request this refund if needed (support@crowdfunder.co.uk).
Gift Aid Declaration Form
Donors can complete a Gift Aid declaration form and provide it to the project owner. The project owner can then include this information when claiming Gift Aid from HMRC. Please contact the project to arrange this. Some organisations provide separate Gift Aid declaration forms that can be completed outside of the Crowdfunder platform.
How to add Gift Aid to my project
To add Gift Aid, click on the edit project button on your dashboard and go to the Basics section.
Then scroll down to tick the Enable Gift Aid button. The gift aid box will then be enabled for donations.
If you have a rewards project, whilst adding your rewards, you will need to tick the box to say that the reward is eligible for Gift Aid so that the Gift Aid option will appear when supporters pledge on that reward. Please review the HMRC guidelines on Benefits received by donors and connected persons before ticking this box.
N.B. Charity Profile pages will automatically collect Gift Aid declarations and also have the option to use Swiftaid to collect Gift Aid on your behalf.
There are eight steps to claiming Gift Aid on Crowdfunder
You should make sure that your organisation is set up to be eligible to receive Gift Aid as soon as possible. You may also need to register with the Charity Commission if your annual income is greater than £5,000.
3. Check that your rewards and pledge amounts are eligible for claiming Gift Aid (see link to HMRC guidance above).
4. If your project offers rewards, when editing your project, tick the Gift Aid box for eligible rewards only (see above).
The following declaration will then appear to backers who select Gift Aid when they pledge.
The following declaration will then appear to backers who select Gift Aid when they pledge.
5. Tick the address box for eligible rewards too.
You’ll need the names and postal addresses of your backers to claim Gift Aid.
7. Download your Gift Aid report.
This is available to download from the Reports section of your dashboard. The report contains the names and addresses of supporters who selected Gift Aid when pledging to your project. You will need this when claiming Gift Aid from HMRC.
For additional guidance on downloading your Gift Aid report, refer to this helpful resource: Gift Aid Report Guide.
To assist with the claim process, consider reviewing these detailed guides from the government:
You can find further information here: https://www.gov.uk/claim-gift-aid/overview.
Why Might Gift Aid Not Be Added?
Adding Gift Aid is optional, and some donors may choose not to opt in for personal reasons. The donors must meet the Gift Aid eligibility criteria and explicitly select the option during checkout to add Gift Aid.
This information should not be construed as legal advice and should not be relied on as such. Please consult HMRC or an appropriately qualified professional.
Please note: If you are set up on Crowdfunder as a Charity Profile Page, then you will have Gift Aid enabled as standard on your donations and also have the option to use Swiftaid to collect Gift Aid on your behalf.