Charities Losing £500+ Million Annually with Unclaimed Gift Aid
Recent research from the Charities Aid Foundation (CAF) has revealed that UK charities are losing more than half a billion pounds annually as donors fail to claim Gift Aid.
Gift Aid is a tax incentive which allows charities to reclaim income tax on donations made by UK taxpayers. For every donation, charities can claim an additional 25% from HMRC, at no extra cost to the donor.
However, despite its potential to significantly boost charity fundraising, only around 55% of donors claimed Gift Aid on their charitable contributions in 2023.
This means that charitable organisations are missing out on approximately £560 million in potential Gift Aid revenue each year.
The benefits of Gift Aid are only realised if donors make a Gift Aid declaration – so it’s incumbent on charities to invite them to do so. This is often as simple as a tick box or form accompanying a charity’s donation platform of choice. The charity can then make a claim to HMRC to recover the tax from that donation.
With the cost of living on the rise, and people making hard decisions on how they spend their money, maximising the impact of every donation has never been more critical.
At TMD, we understand the importance of securing every available resource for the inspiring causes of our third sector clients.
Our team helps charities to streamline their donation processes and ensure they never miss out on another Gift Aid opportunity.
From designing sleek websites with integrated donation functionality, to running targeted campaigns raising awareness of Gift Aid, we're here to help charities make the most of every donation.
Check out these pages in our portfolio to learn more about how we’ve been making waves in the third sector:
