What Is Gift Aid?

Gift Aid is a tax relief scheme, which allows UK charities to reclaim an extra 25% in tax on every eligible donation made by a UK taxpayer.

That means both NPT UK and NPT Transatlantic, as UK registered charities, can claim 25 pence through Gift Aid for every £1 contributed.

As a result, the value of your donation is automatically increased by 25%, meaning you can give more to the causes you care about.

Gift Aid also allows higher tax rate payers to claim tax relief for themselves through their tax return, in respect of the tax they have paid over and above basic rate tax.

 

How Does Gift Aid Work?

NPT UK and NPT Transatlantic are eligible to claim an amount equal to basic rate tax (20%) on the gross gift from HMRC, which equates to 25% of the value of the donation.

Both will claim Gift Aid on your contribution and credit your donor-advised fund account for the amount of the reclaimed Gift Aid.

Donors who are higher-rate (40%) or additional rate (45%) taxpayers are eligible to claim the difference between their tax rate and the basic tax rate (20%) on the gross donation and can claim this on their self-assessment tax return.

Learn more about how Gift Aid works.

 

How Do You Qualify?

To qualify for Gift Aid, the donor must:

  • Be a UK taxpayer
  • Make cash contributions
  • Pay enough UK income and/or capital gains tax in each tax year to cover the amount of tax that charities claim on your behalf for that tax year.

You can only claim Gift Aid on new donations to charity. For example, transfers to an NPT UK DAF from another DAF programme, a charitable foundation or other charitable giving vehicle are not eligible for Gift Aid.

Finally, to claim Gift Aid on a contribution to your DAF, you must complete a Gift Aid declaration form.

Contact us to learn more.

FAQs About Gift Aid

What types of donations are eligible for Gift Aid?

To qualify for Gift Aid, the donor must make a cash donation, which can also be via a direct debit, standing order or bank transfer.

Can Gift Aid be claimed from fundraising events?

No. Any donation made with a company or other people’s money through fundraising events are not eligible for Gift Aid.

Can you use Gift Aid with multiple charities?

Yes. You can support as many UK charities as you like through Gift Aid. You just need to ensure you are paying enough tax during the year to cover your total annual donations and submit a return declaration for each charity you support.

Can Gift Aid be claimed for Payroll Giving?

Donations made to charity through payroll giving are not eligible for Gift Aid. Payroll giving donations are taken from your wages before tax.

Learn More About Gift Aid

Learn how your contribution to an NPT UK DAF may benefit from Gift Aid.
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Giving with a DAF can be a tax efficient way to conduct your philanthropy.
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Donating through Gift Aid means charities can claim an extra 25p for every £1 you give.
Learn More