Gift Aid is a UK government scheme that allows charities and other qualifying organizations to claim back the basic rate of income tax on donations made to them by UK taxpayers. This means that for every 1 donated, the charity can claim an extra 25p from the government. Gift Aid can make a significant difference to charities, as it can increase their income by up to 25%.
To be eligible for Gift Aid, the donor must be a UK taxpayer and the donation must be made to a registered charity or other qualifying organization. The donor must also complete a Gift Aid declaration, which confirms that they are a UK taxpayer and that they want the charity to claim Gift Aid on their donation.