Q: What is the general rule about Gift Aid?

A: It only applies to donations or contributions of money and must be supported by a valid Gift Aid declaration, and the donor must be a UK taxpayer.

Q: Do we need to keep records?

A: Adequate records of all Gift Aid claims must be maintained, or any monies gained may have to be paid back to the Inland Revenue. An audit trail linking each donation to an identifiable donor who has given a valid Gift Aid declaration must be maintained.

Q: What kind of record should be kept?

A: The legislation does not specify this. It is possible to keep paper or electronic records, the latter stored on a Floppy Disk or CD-ROM.

Q: Is there any restriction on what Gift Aided funds can be used for?

A: Any funds generated must be used for charitable purposes only.

Q: Is there a simple way to collect donations?

A: One simple way is to use an envelope that has the Gift Aid declaration printed on it. Once a Marriage Care client has completed a Gift Aid declaration, the subsequent envelopes need only contain the client’s name or some other individual identifier unique to the client.

Q: How should a record be kept of donations in envelopes?

A: When envelopes are opened (see recent communications about the opening of envelopes containing money), a Marriage Care member must record on the envelope and in a donor record the exact amount donated.

Q: What about donations by direct debit, standing order or credit cards?

A: Unless specified, the charity should assume that the Gift Aid donation is from the person who has completed the Gift Aid declaration even if another person is mentioned on any banking or credit card records. However, the person completing the Gift Aid declaration must by a UK taxpayer.

Q: Can a Gift Aid declaration only be made in writing?

A: All Gift Aid declarations can be accepted, either in writing, electronically or verbally as long as an adequate record is kept. If it is not possible to record a verbal declaration at the time of the Gift Aid declaration (using a tape-recorder or similar instrument), it is imperative that a letter is sent to the donor immediately confirming all of the information they have offered verbally, and a record must be kept of this letter.

Q: What is the basic information that any Gift Aid declaration must contain?

A: The donor’s full name, postal address (minimum is house number and post code), the name of the charity receiving the donation, a statement indicating which gifts are covered by the declaration, a statement that the Gift Aid is to apply (the donor may tick a box on a form to indicate this) and a note to the donor that indicates that s/he must have paid sufficient tax to cover the claim of Gift Aid by the charity. There is no requirement that a Gift Aid declaration must be signed.

Q: Can Gift Aid declarations be cancelled?

A: A donor can cancel his or her Gift Aid declaration at any time – the charity will also need to keep a record of this with the date cancellation applies from. Cancellation of a declaration will not effect donations already made but needs to be taken into account for all future declarations.