Small donations Gift Aid review proposals – consultation

The government (or rather HM Revenue & Customs) has opened a consultation to gather views on potential reform options for the Gift Aid Small Donations Scheme. This is part of its full review of the Scheme and builds on the recent Call for Evidence exercise.

The consultation document sets out specific proposals for simplifying the scheme rules to help ensure as many eligible charities as possible can benefit.

Responses by 1st July, see official consultation page.

A Civil Society News article includes reaction from Charity Finance Group, which is disappointed that the proposals don’t go further.

Summary of Consultation Questions

From section 5 of the document.

1. What would the impact on your charity be of the removal of the current legislative requirement that a charity must have been registered for at least two tax years (the two-year rule) before it can access GASDS? Would this change represent a meaningful simplification of the scheme?

2. What would the impact on charities be if the requirement that a charity must have made a successful Gift Aid claim in at least two out of the previous four tax years (the two-in-four rule) was changed to a requirement that a charity must have made a successful Gift Aid claim in the previous tax year only?

3. Does your charity currently collect donations using contactless payment technology, or are you currently considering doing so in future?

4. Would the expansion of GASDS to include donations received via contactless credit and debit cards present any challenges to charities, particularly in terms of record keeping or other administrative requirements?

5. Would the Government’s proposal to allow charities to claim either under the main GASDS allowance or under the community buildings allowance, but not both, present any specific equality issues or generate any obviously unfair outcomes?

6. What impact would this proposal have on your charity?

7. Would relaxing the community buildings rules to allow donations to be received outside of the building itself allow more charities to claim under GASDS?

8. What reasonable requirements could be included to ensure that the relaxed community buildings rules still only benefit donations received in a specific local community?

9. Are there any other reforms that you would like the Government to consider?