Digital Gift Aid

Gift Aid represents a crucial revenue stream for charities in both conventional and digital formats. During 2020, approximately one-third of digital transactions processed through DONATE™ included Gift Aid, delivering substantial extra funding to charitable organisations.

The Gift Aid scheme permits charities to claim an additional 25 pence from HMRC for every pound contributed by UK taxpayers. National Funding Scheme, which operates DONATE™, collects and processes Gift Aid on eligible donations, then distributes funds to registered charitable partners. For non-charitable organisations with charitable purposes, Gift Aid amounts are retained by the scheme, and donations avoid transaction fees.

Web donations allow supporters to apply Gift Aid during checkout, with the option also available on auction winning bids. Text donors receive weblinks in reply messages enabling them to add Gift Aid afterward. Contactless donations cannot include Gift Aid since these transactions do not capture donor information or tax declarations.

Data shows that 61% of all web donations include Gift Aid, compared to only 25% of text donations. Strategic communication about Gift Aid benefits significantly improves participation rates. Automated thank-you messages can include Gift Aid reminders, and donors retain the ability to complete declarations later. Since Gift Aid can be backdated up to four years, ongoing donor communication encourages completion of enduring declaration forms.

Digital Gift Aid declarations reduce administrative errors compared to paper forms while allowing donors to manage their contributions and declarations through the platform.