How to process donations under the Gift Aid Small Donations Scheme (UK only)


This Support Article should be read in conjunction with HMRC's guidance on Claiming Gift Aid as a Charity, and also HMRC's updated guidance on claiming GASDS from 6th April 2017, which has implications for multi-site churches claiming GASDS for more than one site within the same Local Authority. Please check to make sure your church is eligible for reclaiming Gift Aid under the GASDS and that your financial admin procedure caters for proper recording keeping and processing of donations eligible under the Scheme.

The Giving module includes a special "system-installed" giver profile called [Site], SDS - search within the Givers section for SDS. Multi-site churches will have an SDS giver profile for each site, and subject to HMRC rules and the location of each site, multi-site churches may be eligible for an SDS allowance for several or even all of their sites.

At the time of writing (from 6th April 2016), HMRC permits qualifying organisations to claim Gift Aid up to £2,000 per qualifying site on qualifying cash or contactless donations within an individual donation value of up to £20 per tax year (increasing to £30 donation value from 6th April 2019). To prevent exceeding this limit, ChurchSuite keeps track of each SDS giver profile and caps the Gift Aid re-claim once the annual threshold is reached. While there is no limit to the annual total value of donations that can be processed as small donations, ChurchSuite will only permit you to claim Gift Aid up to your annual allowance.

A progress indicator is shown on each SDS giver profile showing the total amount of Gift Aid already claimed for small donations in the current tax year - in the example below, the organisation has claimed £375.79 of its £2000 allowance for the current tax year.

Note: As you approach your annual allowance, it may be necessary to break larger bulk small donations into smaller amounts in order to claim up to the full annual allowance. For example, if you've previously claimed Gift Aid on small donations of £1,990 and the annual allowance is £2,000, you will need to break a large posting of small donations into two amounts - one small enough to obtain the remaining £10 of Gift Aid and the other amount representing the balance of small donations.

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