What’s gift aid?
Your donation to Laughter Africa could be worth almost 25% more – at no extra cost to you.
If you are a UK taxpayer, gift aid lets Laughter Africa reclaim the basic rate of tax on donations you have made to us. It means that for every £1 you donate we can claim an extra 25p from HM Revenue & Customs. For instance, for every £10 you give, we can claim an extra £2.50, making your gifts worth more to the street children whom we support.
How do I sign up to gift aid?
The process is simple – all you have to do is make a gift aid declaration. Declarations can be given in writing, either by post or email, and when making a donation online. The declaration covers all your gifts to Laughter Africa now and in the future while you remain a UK taxpayer.
You can download a gift aid declaration form here. Please print it out and return it to us at: Laughter Africa, 124 Princes Boulevard, Bebington, Wirral, CH63 5LP or email us at firstname.lastname@example.org and we’ll send you a form through the post.
If you are donating online just tick the gift aid box on the donation form. We’ll take care of the rest.
How do I know if I can gift aid my donation?
Gift aid can apply to donations of any amount made by an individual, large or small – it all adds up!
Your donations are eligible for the scheme if you are a UK taxpayer and you are currently paying Income Tax or Capital Gains Tax that is equal to or more than the tax deducted from your donations. As long as you pay enough tax in the year to match the tax that all charities and Community Amateur Sports Clubs (CASCs) claim back – your donation will qualify. For example, if you donate £100 in the current tax year, you need to have paid £25 in tax to match the amount that the charities you have donated to will claim in gift aid.
You are a UK taxpayer if:
- tax is taken from your wages at source (ie PAYE)
- you fill out a self-assessment form
- you have any taxable savings (in a building society, for instance), or a pension plan, investment income or rental income
- you have paid capital gains tax or expect to pay it in the near future
If any of these apply you are eligible to gift aid your donations.
Please note that other taxes such as VAT and council tax do not qualify, nor does any non-UK tax.
What if I pay the higher rate of income tax?
If you are a higher rate taxpayer Laughter Africa is still only able to claim the basic tax rate of 20% in gift aid on your donation. However, if you pay a higher rate of income tax (40% or above), you could be entitled to a tax relief on your donation, worth the difference between the basic rate of tax (20%) and your higher rate (40%). All or part of any tax relief for which you are eligible can be donated to Laughter Africa. You need to make any claims for tax relief through your tax return. For more information visit the HM Revenue and Customs Website
If you are unsure whether your donations are eligible for gift aid or simply want more information then contact the HM Revenue & Customs directly by calling their gift aid helpline on 0151 472 6038 or visiting their website here.
If you have any questions about gift aid – or if your circumstances/details change or you need to cancel your gift aid declaration as you no longer pay enough tax – don’t hesitate to contact us at email@example.com.
Please note that all donors should seek independent advice when making major decisions relating to personal financial and taxation situations as Laughter Africa cannot advise you on your personal circumstances.