What is Gift Aid?
Gift Aid gives charities the opportunity to get an additional 25% for each £1 donated by their supporters.
Traditionally, declarations were collected via forms, with quite a lot of paperwork involved. Nowadays, it is friction-less, efficient and with a much faster turnaround.
Gift Ait is one of the most important tax reliefs for charities and it’s worth over £1.2 million to the charity sector every year, according to HMRC.
Are you promoting your donors?
Research from HMRC shows that people respond the most when they are prompted to include Gift Aid in their donation. They also responded well when they are told exactly how much was claimed the year previous and what the money went to.
You must be transparent with your donors and tell them exactly how this money is spent. Explain what more could be done if everyone claimed it on their donations.
You also need to ensure your volunteers, and supporters fully understand what the Gift Aid system is and the benefits of it. HMRC have also stated that people who understand Gift Aid are more likely to claim it when donating.
Make the right claims
Education is so important when it comes to Gift Aid. You want to make sure your employees or volunteers are explaining it fully to your donors and supporters in order to eliminate any flawed claims. It is estimated that around £45 million is made in mistaken claims every year – more than £15 million lost due to fraud.
To ensure you are keeping on top of all your donations, regular audits and internal checks are the best practice. You should also contact long-standing donors who claim gift Aid to ensure they are still paying tax.
How can InstaGiv help you?
We have modernised the way you manage your Gift Aid from your supporters, by solely capturing it with SMS. This integrated system is completely automated, that reports in a user-friendly manner to successfully make your Gift Aid claim with HMRC.
There are two ways to capture it, via SMS or via a web form. You can select which one you prefer in the setup of your campaign in the overview area.
For both methods, the Gift Aid ask is sent via SMS at a delay after the supporter receives their thank your response message. Supporters reply to the text with their details, and for the web form method, supporters click the URL and complete the form.
The Gift Aid ask is sent out at a delay, for example, 5 minutes after your donors receive the thank-you response message. Gift Aid can be claimed on future donations and those made in the past four years.
Addresses are captured and stored in a dedicated area of your InstaGiv dashboard, where you can easily download all declarations, in preparations for processing.
Our form has been approved by the HMRC and is fully compliant. Both the form and the SMS capture all details needed and has the appropriate legal terminology.
Book a demo today
To find out more, request a demo or a call-back today. One of our friendly team members will go over everything in more detail with you.
Alternatively, for more information on this additional guidance on licencing, please contact us at any time on 028 7087 8220 or email us at firstname.lastname@example.org.