MP backs changes to Small Charitable Donations Act

Jeremy has welcomed changes to the Small Charitable Donations Act that will allow charities to claim additional gift aid on small donations.

The Small Charitable Donations Act 2012 came into force on 6 April 2013 introducing a new scheme to enable Charities and Community Amateur Sport Clubs (CASCs) to claim Gift Aid style top-up payment on small cash donations up to £20 in circumstances where it is not practical or feasible to obtain a Gift Aid declaration.

Gift Aid tax relief allows charities to claim 25p every time an individual who pays tax donates £1 to a charity and makes a gift aid declaration.

Under changes approved this week, the maximum amount of small charitable individual donation of which these payments can be claimed has gone up to £30. Eligible charities and CASCs can claim these top-up payments on up to £8,000 of small donations each year. The change will be come into force from 6 April 2019.

The Government estimates that around 20,000 organisations will benefit from this measure. Only 20% of organisations currently participating in the Gift Aid Small Donations Scheme (GASDS) are already claiming at, or close to, the overall limit of £8,000 per charity. The increase in the individual donation limit will therefore allow more charities to receive more in GASDS payments.

Commenting, Jeremy said: “I was proud to have been a member of the Committee scrutinising this Bill back in 2012 and again now when agreeing to raise the donation limit.

“This small but important piece of legislation gives local charities in Stafford and throughout the UK access to extra funding; money that will help small charities and enable them to continue their vital work for the community. The scheme will reward the efforts of individuals and groups who strive to do their bit for the community and top up the donations to charity buckets and cash tins which are not normally eligible for Gift Aid.”