Gift Aid

The Gift Aid scheme introduced by the UK government on 6th April 2000 allows charities to claim from the government the basic rate of tax paid by a donor to the charity. The donor must have confirmed that they pay either income tax or capital gains tax.  They do this via a gift aid declaration. They also have to have paid enough tax to cover the sum reclaimed. 

Until 2011, the amount of basic rate tax that can be reclaimed via a gift aid declaration is 25%. Thereafter the amount will be reduced. Higher rate tax payers should declare their donations on the tax assessment.

Gift Aid only applies to gifts.  It can not be used in conjunction with a payment for goods or services (for example, when buying merchandise) or for raffle tickets. It can be used for Lodge offertories using gift aid envelopes, available from the MSF.

If used in conjunction with a sponsored event, the money raised comes from the sponsors, not from the person being sponsored. Therefore the sponsors must ask for their payment to be treated as a gift aid donation and the sponsorship forms should allow for this.

There is no longer an upper limit to the amount that may be donated under a gift aid declaration.

Gift-aid declarations may be made to cover donations made to the charity in the past but not before 6th April 2000.

In the case of the Derbyshire Festival 2014, the relevant charity is the Masonic Samaritan Fund (MSF). In the case of all donations made directly to the Fund, whether one-off, regular giving or those made via gift aid envelopes, the Fund will reclaim the tax from the government.

Where transfers are made from Lodge Relief Chests, operated by the Freemasons' Grand Charity, the Grand Charity will have already reclaimed the tax made on the donations that were paid into the Relief Chest.  Such transfers must be made using the blue Relief Chest form and be accompanied by a list of donors and the amounts donated in their names.  These amounts will include the gift aid reclaimed and the interest earned on individual donations.

Please return to the download section of the Festival website for the forms used to make gift aid declaration and the guidance notes for using gift aid envelopes.  The envelopes are available directly from the MSF on 020 7404 1550.
 

Further information about Gift Aid is available on the  Revenue & Customs website (click on the logo):