Getting Started with Gift Aid:

Benefit Rules

What donations qualify for Gift Aid?

A Gift Aid donation must be a payment of money. It cannot be made in kind, by loan waiver or by debt/loan conversion.

Subject to the benefit rules (see below), payments to the church in return for services, rights or goods are not gifts and therefore not eligible for Gift Aid. For example, payments to purchase books, jumble sale items, or food, or admission to events (jumble sales, concerts etc) or for raffle or lottery tickets (including 100 clubs) do not fall within the Gift Aid Scheme.

While it is unlikely to apply to the Church, parishes should be aware that there are limits to the benefits that donors can receive in return for their donation. (There are no limits to God’s blessings, however!)

Modest benefits given in return for a donation will not stop the donation from qualifying as a Gift Aid donation, provided their value does not exceed certain limits. The maximum benefits that a donor, or a person connected with the donor, can receive as a consequence of his or her donations are:

These limits apply separately to each donation (the relevant value test). Additionally, the value of the benefits received in any tax year must not exceed £250 (the aggregate value test). There are several examples given in the HMRC Charities Detailed Guidance Notes. If you are unsure whether a particular donation can be included in Gift Aid, please contact Church House Gift Aid Officer (0151 705 2132).

To find out how to operate a Gift Aid Scheme, click on the following link:
Operating a Gift Aid Scheme

Or go back to
Getting started with Gift Aid
Declarations
Recording Declarations
Cancellations and amendments