A Guide to Gift Aid
July 14, 2021 by Tim Hunt
Gift Aid is one of the most crucial tools for charitable and religious organisations to incorporate into their donation scheme. In this guide, we will be explaining the ins-and-out of Gift Aid and how your church and charity can benefit from the scheme to ensure you receive the maximum financial benefit from your donations.
What is Gift Aid?
Gift Aid is a tax relief for individuals that enables them to give the income tax or capital gains tax that they pay directly to a charity on top of their donation. In effect it adds 25p for every £1 donated to a charity. This is an incredibly valuable tax relief, and claiming is straight forward. Every small charity that regularly receives donations from individuals should register for Gift Aid so that they maximise the value of donations to their charity.
How does Gift Aid work?
Individuals need to give their consent for the charity to receive their tax on top of their donation. They do this through making a Gift Aid Declaration. A valid Gift Aid Declaration must include:
• The name of your charity
• The individual’s name
• The individual’s home address including house number/name and postcode
It must also be clear that the individual has chosen to Gift Aid. This could be through filling out their name and address, ticking a box or signing the Declaration. Otherwise, you have no way of proving that the individual wanted your charity to claim Gift Aid.
This is a statement which the individual (usually a form) fills in to say that they give permission for the charity to claim the tax. As only income tax and capital gains tax can be claimed, individuals must be confident that they are paying enough tax to cover the amount that they wish to donate to the charity. This tax must be paid in the same tax year that the donation is made (tax year runs from 1st April till the 31st March). You claim Gift Aid on donations made up to four years ago (providing that they paid enough tax in that year) and you can get people to sign a declaration that enables you to Gift Aid all future donations, so that you don’t need to ask them again if they regularly give to you.
What types of donations can you claim on?
There are some rules about the types of donations can have Gift Aid claimed on them.
1. The donation must be from the donor’s own money. For example, a husband cannot claim Gift Aid on a donation made by their wife.
2. The donation must be money. Gifts in kind don’t count. Cash, cheques, direct debit, credit card, debit card, postal order or standing order all count – as do electronic transfers. Old chairs, books or gifts of time don’t count!
3. Payments for a service or goods don’t count. For example, paying for items in a jumble sale doesn’t count.
How do I register for Gift Aid?
To register for Gift Aid you must be:
1. Based in the UK, EU, Iceland, Liechtenstein or Norway
2. Established for charitable purposes only (i.e. you aim to deliver benefits for the public, rather than private individuals). See this list for more information.
3. Registered with the Charity Commission.
4. You must not be run by people who have been individual in fraud, abused the tax system, used tax avoidance schemes using charity reliefs, been involved in designing or promoting a tax avoidance scheme or been barred from being charity trustees or disqualified from acting as a company director.
If you meet these criteria, you can register online with HMRC’s online service.
What do I need to have with me to register?
You’ll need to have with you:
• The charity’s bank account details and financial accounts
• The details of 2 people (trustees, volunteers or staff) that are going to claim Gift Aid on behalf of your charity. This includes their addresses, dates of birth and National Insurance numbers.
• Your charity’s registration number with the Charity Commission.
• Your charity’s governing document and objectives (also known as charitable purposes).
What else do I need to know?
• You need to keep your details up to date – both of your charity and the people that are claiming Gift Aid.
• You need to keep hold of the Gift Aid Declaration and details of donations that are claimed by the charity for 6 years after the most recent donation you claimed Gift Aid on – so keep those records safe and somewhere you can easily access them!
• If you are in doubt about anything to do with Gift Aid, contact the HMRC Charities Outreach Team on 0300 123 1073.
The Christmas Catch Up 2019
December 11, 2019 by Tim Hunt
Thank you to all of our loyal Lockie customers for allowing us to produce your offertory and collection envelopes throughout 2019. We have had a busy year and launched our brand new website in the spring to make ordering your envelopes simpler and more interactive. Our new online ordering system allows you to see a live proof of how your envelopes will look when we print them – making sure you are happy with what you will receive. The feedback has been overwhelmingly positive and we continue to improve how our site functions for the benefit of our customers.
We have also welcomed new staff into the fold and had to sadly say goodbye to others. We have remained hard at work, ensuring orders are being produced in time for their start dates, whilst simultaneously developing the future of how we create your envelopes. Here are some of the 2019 highlights!
Please welcome our newest team members!
We would like you all to join us and welcome Debbie and Ashely to the Lockie Team. Ashley has joined our accounts team, whilst Debbie will be working in our administration department to help out with ensuring we receive your orders safe and soundly! We would like to also thank Lydia for her wonderful service over the last 2 years. She has excitingly moved onto new challenges and we wish her all the best in her future endeavours!
Christmas Crossword Competition
Our Annual Christmas Crossword competition is now live! The winner will receive a luxury regency hamper, full of goodies and treats! Please complete the crossword and try to find out the keyword within the yellow square. Once you have solved this anagram and have the keyword, please send an e-mail to firstname.lastname@example.org with your church name and the answers to be successfully entered into our prize draw.
You can download a PDF version of the crossword by clicking here. You can also mail in your submission via post to the address Lockie Limited, Lockie House, Withins Road, St Helens, WA11 9UD.
New Machinery in 2020
We have spent much of 2019 working on plans for a new envelope machine that will improve how we print your envelopes. We expect our development process to push into the new year, but don’t worry – we are hoping for a Q2-Q3 launch and intend to inform you of the new features available upon its inception.
The new machinery will bring with it a multitude of new features, including full colour printing for boxed set envelopes. We intend to release more information next year on the development of this project so stay tuned for more information!
Christmas Opening Times
Please be aware that our Christmas shut down will be on Friday 20th December until we return on Thursday 2nd January. It is important that we receive urgent and impending orders as soon as possible before we officially close for Christmas. This will allow your envelopes to be put into our production schedule and prevent them from being added to the backlog of orders we receive during our office and factory shutdown.
Church and Charities missing out on £600m in unclaimed Gift Aid
October 23, 2019 by Tim Hunt
According to a 2018 report from the government, UK church and charities are missing out on £600m in gift aid donations because people are not enabling them to claim gift aid on their donations.
According to research, Gift Aid was not claimed on one third of donations that were eligible for it, costing the sector £600m in unclaimed donations. It also found that £179m is being claimed erroneously by people who don’t understand the exact requirements of the process.
HMRC commissioned research on Gift Aid from consultancy Quadrangle, and has published the report today, which estimates that donations are worth £8.9bn. To do the research, 1,377 people were surveyed in late 2016 and early 2017. Research found that 95 per cent of people had donated to charity in the 12 months prior to being questioned.
• 78 per cent of the population had given money through collection tins or buckets, raising £620m for charity. But 40 per cent of people gave via direct debit, raising £3.61bn.
• There was more chance of people including Gift Aid when then made a donation online, with 73 per cent doing so, than by other methods. 59 per cent of direct debit donations, 50 per cent of charity envelope/cheque donations and 39 per cent of donations at a place of worship included Gift Aid.
• The research found that awareness of Gift Aid was relatively low, with nearly a quarter of the public unsure about whether they were eligible and 18 per cent getting their status wrong.
Gift Aid Awareness Day
The Charity Finance Group plans their second Gift Aid Awareness Day, which will take place on 3 October 2019. The event began in October of 2018 and the umbrella body will also commission research about how best to explain Gift Aid to the public and produce material charities can use to help with event.
The CFG has said that their overall aim is to encourage charities to educate staff and volunteers on Gift Aid so that they can educate their family and friends. Speaking at the launch last year, Caron Bradshaw, chief executive of CFG said: “Gift Aid is vital to the charity sector and supports the work of tens of thousands of organisations. Without it, our sector would reach fewer people and deliver less impact. CFG wants to give practical support to charities so that we can boost the amount of Gift Aid claimed. At a time when charities are struggling to meet demand, every penny counts.”
Gift Aid Alternatives
According to the research, nearly 80 per cent of people donate by giving money to collection tins or buckets. This type of donation method is not normally eligible for Gift Aid, but charities can use another mechanism, the Gift Aid Small Donations Scheme. GASDS was introduced in 2013 as a way for charities to claim on small cash donations, but uptake by the sector has been lower than expected.
The Treasury has now written to 50,000 charities urging them to use the scheme. Robert Jenrick, exchequer secretary to the Treasury, said: “The UK has thousands of brilliant charities, all working hard to make people’s lives better. Through Gift Aid, we are already giving charities an extra £1.3bn of funding so they can continue their important work. “We know how crucial this funding is. This is why we’ve just written to 50,000 charities to tell them about the Gift Aid Small Donations Scheme, which makes it even easier for charities to claim a 25 per cent top-up on their donations.”
Gift Aid Envelopes
The population is mixed in its understanding of Gift Aid, with just over a quarter (26%) having ‘good’ understanding and a further third (33%) ‘fairly good’ understanding. The remaining donors have a ‘fairly poor’ or ‘poor’ understanding (30% and 11% respectively). Our Gift Aid Envelope products are the perfect way to collect your donations and ensure Gift Aid is applied to each and every donation.
With a wide range of fully customisable printing, each envelope is bespoke printed with a Gift Aid Declaration, ensuring customers are aware of the Gift Aid process and that it is applied to each and every donation. You can view our full range of Gift Aid Envelopes here.
Research on Unclaimed Gift Aid – HMRC
• Charitable Giving and Gift Aid – Research Report for HM Revenue & Customs
Lockie Web – How to navigate and use our new website
June 24, 2019 by Tim Hunt
We are proud to announce the launch of our brand new website which brings with it a range of new features, making it easier and simpler for customers to purchase. Many of these new features will allow you to see the full customisation of your envelopes and give live demonstrations of your personalised product. We will give you a brief overview of some of the new features of the website and how you can easily navigate some of our new layout.
Don’t worry, our popular Rapid Renewal feature is still here for you to take advantage! This form allows existing customers who are logged into their account to quickly place previous orders or their annual renewal of envelopes. To access this feature:
• Simply login to your account and click the ‘Rapid Renewal’ button in the top right of the page (or click ‘Customer Portal’ and then click the Rapid Renewal option)
• Once you navigate to the Rapid Renewal page, it should look like so:
• Once on the page, you must enter the previous order number you are trying to renew (you can find this out by looking in your previous orders on the left sidebar). If you can’t find the order number here, you can simply enter your account number which should be located on any invoices, reminders or past paperwork we have sent you through the post.
• You must then click the ‘Product’ drop down box and select the product from the order you wish to renew. If your previous order consisted of multiple products and you wish to renew all of the products in the original order, simply click ‘All Products’.
• In the text box below, you will then be able to type any changes you wish to make to your previous order such as quantity, ink, envelope or box colour, start date or numbering.
On our Boxed Set and Gift Aid products, you can now see a full live proof of your envelope as you enter the details of your product. Once you have selected your start date, verse, design, numbering, box colour, and ink colour, you will then be able to type in your church details (Church name, district, diocese and RCN) which will then appear on the live proof. You will then be able to select your envelope colour which will display underneath like so:
On our Boxed Set Envelope products, you are also able to upload your own design or enter your own verse by scrolling to the bottom of either drop down box and clicking ‘other’. The custom verse entry field is shown below in red to illustrate where your wording should be entered:
On our Gift Aid Envelope products, you will be able to select the positioning of your image on the proof which includes left of header text, right of header text or behind the text (opaque style). You must select ‘Upload Image’ and then the Image Positioning and File Upload will appear below it, like so:
Once you login to or register your account on the top of the homepage, you will be able to access and change all of your account and order information. To access your account, use the top navigation bar and click ‘Customer Portal’. On this page, you can access the Rapid Renewal form to replace previous orders quickly, view or change your customer information, view past orders placed on the website or easily change your contact preferences through our Newsletter.