Gift Aid Recovery

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    Be interested to learn how Sheds undertake Gift Aid. My Shed does not pay an Annual Membership Fee but instead, charges a weekly fee which allows the member to attend up to five times in the week from Monday through to Friday.

    To calculate what Gift Aid to recover, I think I would need to generate a spreadsheet that records the number of times in the Financial Year of the Shed that each member attended and paid to come up with a total amount paid. If they are a UK taxpayer, then we could recover Gift Aid on this amount provided that we hold a declaration of the amount paid that has been signed and dated. It would need to be an annual exercise to update the information, but I believe it could work.

    I’d be interested to hear what other Sheds do.

    Frome Shed

    We ask all Members to complete a standard Gift Aid form – “I want to Gift Aid my donation of £……..and any donations I make in the future or have made since 24th April 2017 to The Frome Men’s Shed.”

    We already maintain records of Shedder by attendance week and donations, and so we can roll up for an annual submission.

    We have just received our first payment from HMRC, and will shortly be submitting our second years submission – Expecting a payment in the region of £1000.

    We already update personal information annually with regards to GDPR – This applies to address and any change t status.


    Its great if all members pay Income Tax, but we have at least four who do not. HMRC guidance is quite clear that in order to be eligible to claim Gift Aid, “For a charity to claim Gift Aid on your donation, you must have paid UK Income or Capital Gains Tax that financial year. The tax you pay must be equivalent to the amount of Gift Aid the charity will reclaim on your donation that tax year (and will be claimed by other charities and CASCs)”.

    As a small Shed the admin effort does not justify the meagre rewards. If you have regularly 20 – 30 members attending each week, then I could see its worth.


    There are a few misconceptions in this thread not least is the belief that attendance donations are eligible for Gift Aid – except in very restricted cases they are not, see:
    Chapter 3.37 Membership subscriptions
    3.37.1 There’s a statutory requirement, under Gift Aid, for payments to be gifts. This means that payments that are made to acquire goods or services aren’t eligible for Gift Aid. However, there are rules within the Gift Aid legislation that allow charities to provide donors with token benefits, within specified limits, in recognition of their gifts.
    3.37.2 Most membership subscriptions aren’t gifts, they’re made to gain access to the facilities and services provided by the charity.

    Also the belief that donors must sign a Gift Aid Declaration before their donation is eligible for Gift Aid – that is true for donations >£30, once a Charity has qualified the GASDS [Gift Aid Small Donations Scheme] allows the recovery of eligible donations of £30 or less even if the donor has not signed a declaration and has not paid tax.

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