A Helping Hand For Charities

Help for the smallest

From April 2013, charities receiving small donations of £10 or less will be able to apply for a gift aid repayment without the need to obtain gift aid declarations from each donor. This scheme is capped to donations totalling £5,000 per annum per charity and charities will need to be recognised by HMRC as having a successful three-year track record of good tax compliance. Further details will be consulted on over the summer. This is a welcome simplification, but it remains to be seen whether the red tape requirements will negate the benefits for most charities.

Help for the biggest

Under current rules, if an individual or company donates more than £10,000 to a charity, the benefit which they can receive from the charity (while preserving tax relief on the donation) is capped at £500.