Progress on reforming small Gift Aid scheme

The Small Charitable Donations Bill, announced in the Queen’s Speech earlier this year, has now been laid before Parliament. It is expected to have its second reading debate on Tuesday 11th October.

As reported by Civil Society News, charity bodies have said they will be pushing the government to strengthen the measures to improve the working of the Gift Aid Small Donations Scheme.

NCVO has said that they are “pleased to see government responding to some of our recommendations”. The NCVO article summarises the reforms agreed so far:

Scrapped: The ‘two year’ rule A charity no longer has to exist for at least two years before claiming – new charities can now use the scheme to help them fundraise.

Removed: The ‘two-in-four’ rule (the history requirement) A charity no longer has to make a valid Gift Aid claim in two of the previous four years – charities that infrequently make Gift Aid claims can now access the scheme more readily.

Included: Contactless payments Contactless donations will be eligible for Gift Aid claims under the scheme. It’s early days for this technology, but this gives charities the flexibility to claim as the use of contactless grows.

The NCVO article however also points out that the matching requirement is seriously in need of change.