Clarifying Gift Aid on “family donations”

HM Revenue and Customs has responded to recent reports in the national media that they have been restricting Gift Aid on donations which are accompanied by a message of support from a donor’s family.

“HMRC’s position has always been that Gift Aid can be claimed when an individual donor, who pays tax in the UK, makes a donation, even if additional names are added in a supporting message. HMRC’s advice on this issue appears to have been misinterpreted so we are going to ensure our guidance is as clear as possible.”

An article on Fundraising UK which gives background to this issue focuses on donation platform JustGiving, which along with other charities,

experienced a sudden rise in rejections of Gift Aid submissions to HMRC towards the end of 2015, the result of more stringent application of regulations. Evidence of ‘family donations’ or ‘social giving’ was taken to indicate that the donation was not made out of taxed paid by one individual, and so did not qualify for Gift Aid.