Glossary
Fundraising

Gift Aid Claim

By: Alec Hollingsworth
Updated:  
July 2, 2025

Definition:

A Gift Aid Claim allows UK charities to reclaim tax on eligible donations, increasing fundraising income at no extra cost to donors.
A Gift Aid Claim is a process used by UK charities and Community Amateur Sports Clubs (CASCs) to reclaim the basic rate tax already paid on donations by individual UK taxpayers. When individuals donate to a registered charity and confirm they are UK taxpayers, the charity can submit a claim to HM Revenue & Customs (HMRC) to receive an extra 25p for every £1 donated, at no extra cost to the donor. This process requires accurate record-keeping of donor declarations and proper submission of claims. Gift Aid Claims help charities maximize their fundraising by increasing the value of eligible donations, but they must comply with specific HMRC requirements to ensure funds are received.

Key Takeaways

  • Gift Aid Claims increase the value of eligible UK donations by 25%.
  • Charities must maintain accurate donor records and declarations.
  • Claims are submitted to HMRC for reimbursement.
  • Nonprofits must comply with HMRC guidelines to avoid penalties.

Why It Matters

Gift Aid Claims can significantly boost donation income for eligible UK charities.

Real World Example

Imagine a UK charity receives £1,000 in eligible donations from various supporters. Each donor has completed a valid Gift Aid declaration, confirming they pay UK tax. The charity uses Keela to track these declarations and donation records, ensuring all documentation is in order. At the end of the quarter, the charity submits a Gift Aid Claim to HMRC through the correct process. HMRC processes the claim and reimburses the charity with an additional £250, making the total received £1,250. This extra income supports the charity’s programs and demonstrates the value of leveraging Gift Aid for fundraising.

How Keela Helps

Keela supports UK-based nonprofits by helping track donor eligibility and manage Gift Aid declarations, making it easier to prepare accurate Gift Aid Claims. With Keela, you can generate detailed reports and maintain the necessary records, streamlining the claims process for HMRC submissions.

Frequently Asked Questions

What is a Gift Aid Claim?

A Gift Aid Claim is a submission by a UK charity to HMRC to reclaim basic rate tax on eligible donations from UK taxpayers.

Who can make a Gift Aid Claim?

Only registered UK charities and Community Amateur Sports Clubs (CASCs) can make Gift Aid Claims, provided they have valid donor declarations.

How does Keela help with Gift Aid Claims?

Keela helps nonprofits track donor eligibility, manage Gift Aid declarations, and generate the reports needed for accurate claims submission.

What records are needed for a Gift Aid Claim?

Charities must keep donor Gift Aid declarations and detailed donation records to support their claims to HMRC.

Related Terms

A/B Test
Accessibility Compliance
Acknowledgement Letter
Address Verification
Affiliation
Archiving Historical Donor Data

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