Gift Aid is one of the most important tax benefits available to museums in the UK; it gives registered charities the opportunity to claim back extra money from the government on each donation received.
Despite being worth around £1.3bn to the charity sector each year, HMRC says that a quarter of eligible donations go unclaimed, adding up to a value of £560m.
If your museum isn’t currently claiming Gift Aid and you’re not sure where to start, take a minute to look at our handy guide that covers what you should know.
What is Gift Aid?
Essentially, Gift Aid is a tax relief which allows charities to reclaim an extra 25% on every eligible donation made by a UK taxpayer.
Who is eligible to claim?
Any museum that meets the legal definition of a charity can claim. You can apply online to be recognised as a charity here.
Which donations qualify?
Certain restrictions apply, but the relief can be claimed on cash payments from admission fees, subscriptions, sponsorship and monetary gifts, for example.
A donation must be:
- From an individual, sole-trader or partnership taxpayer who has paid enough tax in the UK to cover the claim
- A sum of money with no conditions attached
- Linked by an audit trail between the donor and charity’s accounts
You can only claim on donations received within four years of the end of the financial period you received it in. This is:
- The tax year (6 April to 5 April) if you’re a trust
- Your accounting period if your charity is a Charity Incorporated Organisation (CIO) or limited company
What do you need to provide?
HMRC requires a Gift Aid declaration from the individual you are collecting the donation from. This must include their initials, last name, house number/name and postcode.
With an automated system, you can prompt customers when they’re purchasing tickets online or through a till point. Their details are stored safely and securely, from which you can create reports and make submissions to HMRC – it’s quick and easy!
Our platform makes it easy for your museum to be Gift Aid compliant by seamlessly integrating admissions, memberships, events and shop sales all in one place. If you’d like to find out more, get in touch with us today.