What is it about
Gift aid increases the value of donations to charities by allowing them to reclaim the basic tax rate on the donations.
It is the most widely used tax-efficient mechanism within the NFP sector and allows charities to increase the amount
of funding. Therefore it is encouraged that charities take advantage of this scheme and any supported processes should be efficient.
What does it do
- User defined settings to accommodate each organisation’s financial year
- Automatic creation of gift aid declarations whilst income processing based on rules
- Automatic creation of gift aid declinations whilst income processing
- Ability to claim on single gifts
- Ability to flag a gift as non-gift aid able
- Understanding of gift aid declarations for sponsorship income and tribute income
- Understanding of payment methods that are not eligible for gift aid
- Understanding of types of income that are not eligible for gift aid
- Understanding of which types of income is claim externally, e.g. Just Giving
- Separate claims for sponsored event income and general income
- Paper or electronic claim output
- Automatic acknowledgements for new oral gift aid declarations
Why our clients need this
When making an ask to a supporter, our clients should always provide an option of opting in to the gift aid scheme.
In most instances, this is a statement about the scheme and a check box for the supporter to indicate whether they are a UK tax payer or not.
When processing income in alms.NET, whether a donation or a direct debit,
alms.NET allows for quick capture of a gift aid declaration,
e.g. if the supporter has said Yes to Gift Aid, the processor needs only to record ‘Gift Aid all gift’ and alms.NET will automatically generate a declaration based on the organisation’s financial year set up.
For certain payment methods, e.g. Charity Vouchers and Payroll Giving, these transactions are automatically exempt from gift aid claim process as are income types such as Raffle (but not associated donations) and donations from corporates and trusts.
Gift aid can be become more complicated when processing income such as sponsorship event income, however, if the sponsorship form has a gift aid column, the processor needs only to add a yes/no to gift and these will be claimed at a transactional level.
When importing data from Just Giving and other similar types of agencies, alms.NET will have an understanding of whether the transactions are to be claimed inside the system or whether another agency will claim.
