Churches and charities will therefore be able to claim up to £2,000 of payments from the government under the scheme each year. The limit was previously £1,250.

In response to the news, John Low, Chief Executive of the Charities Aid Foundation said: “Extending the Gift Aid Small Donations Scheme is a useful step in the right direction and we hope to see the donation maximum increase proportionately in the future.”

The purpose of the GASDS is to allow churches and charities to claim Gift Aid style payments on donations received in circumstances where it is difficult to collect donors’ details (such as a plate or bucket collection) or where donors may be reluctant to give them.

A GASDS claim can’t be more than 10 times the size of all Gift Aid claims made –  e.g a charity can claim on £1,000 worth of donations through GASDS if they have received £100 of Gift Aid donations in the same tax year.

Your church is eligible to claim this payment, so long as it meets the following criteria:

  • It has existed for at least two tax years
  • You have successfully made gift aid claims in at least 2 out of the last 4 tax years.
  • The church has not incurred any penalties relating to claims in the current or previous year
  • You host at least 6 services per year, which are attended by over 10 people

If you would like to find out more about the Gift Aid Small Donations Scheme, please visit our Gift Aid Made Simple page on the subject.