It is thought that many charities and churches are yet to claim the government’s “top up” gift aid payment, known as the gift aid small donations scheme (GASDS).
In the first two years of the scheme, the government forecasted that a total of £135m would be paid out to UK charities in GASDS payments.
However, subsequent figures have revealed that a total of just £27m has been claimed back under the scheme between 2013 and 2015.
The GASDS allows your charity to claim gift aid style relief on non-gift aided cash donations worth £20 or less.
Currently this payment could be worth an extra £1,250 to your charity and in April 2016, this is set to increase to £2,000.
A review of GASDS will take place in spring 2016 and many groups such as the Charity Finance Group and Institute of Fundraising are pressurising HMRC to improve the scheme.
It is thought that the main problems with GASDS is the lack of awareness of the scheme and the complexity of its administration.