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25% uplift on donations
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Charitable Giving

Gift Aid is a tax efficient method of giving where charities can claim, from HMRC, an extra 25p for every £1 donated.  Subject to certain tax rules, subscription payments that volunteer organisations collect from their members may be Gift Aid eligible, because in some instances they may be considered as charitable donations.

The Government says that lots of people have heard of Gift Aid but that not many people use it, largely due to a lack of awareness of tax efficient giving.

It’s also extremely time and labour intensive for volunteers to track and reconcile payments, maintain Gift Aid declarations and manage submissions to HMRC, which means your organisation is potentially missing out on sustainable, much needed revenue.

Well, you don’t need to worry about that because MCH is authorised by HMRC to file Gift Aid repayment claims on behalf of UK registered charities.

By allowing MCH to facilitate the collection of payments and administer all of this for you, you could:

  • Increase revenue
  • Free up valuable resources for your organisation
  • Ease the financial burden on your paying members

Understanding
Gift Aid

100

Eligibility

64

Awareness

33

Usage

  • 100%Subscription based payments
  • 64%People aware of Gift Aid
  • 33%People use Gift Aid
Gift Aid Rules

Source: The Cabinet Office – National Survey of the Third Sector 

Existing charity?

MCH can administer Gift Aid claims on your charity’s behalf through use of its automated processing technology, making collection, tracking and reporting of individual payments easy for you. All you have to do is set it up:

  1. Firstly, you need to be signed up to a Government Gateway account.  This is quick and instant.
  2. Secondly, your charity must be recognised by HMRC for tax purposes.  This process can take up to 6 weeks from the date of information submission.
  3. Lastly, you need to activate the relevant MCH functionality. You do this by entering key HMRC information about your organisation, via your MCH official's hub login.  It is compulsory that the information provided, matches exactly to that held and provided by HMRC.
Step-by-Step Guide

Membership Gift Aid?

There are specific legislative rules regarding the eligibility of Gift Aid on memberships and it mustn't be assumed that every charity is automatically entitled to claim this from HMRC.

A charity's ability or entitlement to submit such claims to HMRC will be determined by many factors, including the structure and governing rules of the charity, the services and activities it provides and even the level of access to facilities that may be on offer.

Ultimately and subject to these determining factors, membership is to secure voting rights.

It can certainly be a complex area and there is no 'one size fits all' but with correct interpretation of the rules, it may be possible for your charity to benefit from these valuable tax reliefs.  

MCH highly recommends that every charity seeks the appropriate professional tax advice in this area.

HMRC Guidance

No need to wait, you can get started now

The set up processes with HMRC and Bumbershoot Charity UK can take a little bit of time but that doesn’t stop you from getting going with enjoying all the benefits MCH has to offer. In fact, the MCH registration will guide you through the HMRC and Bumbershoot Charity UK processes.

You can, if you wish, partially complete your registration and return to finish and activate at a later date.

Get Started