Gift Aid Query

[bungeejumper]

I'm hoping that somebody with knowledge of the charities scene will be able to help me figure this out. Maybe there's been some kind of change in the regime? Or is it just a cock-up?

Over the last couple of years I've made two (pretty substantial) charity donations to a nearby hospice which did a really fantastic job for my sister in law when her time finally came to leave us. And on both occasions I filled out a gift aid form to make sure that the charity could get the maximum benefit.

I've been a bit surprised, then, to receive another letter from the charity, asking me to retroactively apply for gift aid for all my donations over the last four years. (i.e, in this case, both of them.) Surely, I thought, I've already signed all the tax relief over to the hospice? Are they really asking me to do it a second time? And wouldn't that look a bit, ummmm, fraudulent in the eyes of HMRC?

Here's hoping I've misunderstood something!

BJ

[Watis]

Hi bungeejumper,

I'm the Treasurer of a charity so may be able to offer some comfort.

It may be that - perhaps due to a change in personnel, say - they have mislaid your original Gift Aid form.

Given the timing though, it may be that they have read the new GDPR regulations and decided to play it safe and get a positive opt-in from you and perhaps other donors.

If they were to claim the tax refund twice, whether due to fraud or incompetence, it wouldn't reflect badly on you at all - you would not be giving them permission to claim twice.

HTH,

Watis

[PinkDalek]

… I've been a bit surprised, then, to receive another letter from the charity, asking me to retroactively apply for gift aid for all my donations over the last four years. (i.e, in this case, both of them.) Surely, I thought, I've already signed all the tax relief over to the hospice? Are they really asking me to do it a second time? And wouldn't that look a bit, ummmm, fraudulent in the eyes of HMRC? ...

You may have signed one of these, covering the current tax year only https://assets.publishing.service.gov.u ... nation.pdf

This one would include the previous 4 years https://assets.publishing.service.gov.u ... ations.pdf as would this template https://assets.publishing.service.gov.u ... rities.pdf

Nothing fraudulent so not to worry.

[Howard]

Can I second Watis's post.

I was responsible some years ago for fundraising for a major charity and we were informed we would be audited by HMRC. The auditor came to have a pre-audit discussion and watching his reactions to some sample files, I felt that some of our historic Gift Aid records were not as good as he'd like.

We decided to circulate all our Gift Aid donors asking them to complete another up to date form, mentioning that we anticipated an audit from HMRC. The circulation list was large, and included many wealthy and generous donors. From memory I think it was the only time I've received 100% response from a mailing list.

When the auditor came and inspected the new forms and compared them with the database, he congratulated us on the excercise, commenting that our housekeeping initiative had saved him a lot of time. He had a look at some other issues which were ok and to my relief we passed the audit with flying colours.

So I would guess that your hospice has done something similar and HMRC would approve.

regards

Howard

[PinkDalek]

That may be the case but I think it is more likely the charity concerned is following the new 'model' Gift Aid form guidance here:

https://www.institute-of-fundraising.or ... s-changed/

While charities can start using the new model declaration now, HMRC have said that charities holding stocks of printed materials, or need time to incorporate the new changes, can use the previous model declaration until 5 April 2016, but from 6 April 2016 the new declaration must be used. Incorrect declarations may result in Gift Aid claims being invalid.