Gift Aid Small Donations Scheme
The Gift Aid Small Donations Scheme (GASDS) was introduced on 6 April 2013. The scheme allows qualifying charities and Community Amateur Sports Clubs (CASCs) to claim a top-up equivalent to Gift Aid on up to £5,000 of small donations of money made without a Gift Aid declaration. A small donationis defined as a donation of £20 or less in cash. Donations made by cheque, credit card, text or bank transfer do not count.
The aim of the GASDS is to allow charities to claim a Gift Aid style payment on donations received in circumstances where it is difficult to collect donors’ details (such as a bucket collection) or where donors may be reluctant to give them.
HMRC has recently published revised guidance to explain the time limits for charities and CASCs to apply for confirmation they can take over the claims history of a previous charity or CASC after a merger.