Gift Aid and Charity Shops

• Gift Aid
• Charity Shops

Third Sector has reported that St Giles Hospice based in Lichfield, Staffordshire has joined a growing list of charities which apply Gift Aid to Charity Shop donations.

In November 2006, Sue Ryder Care was the first charity in the UK to apply Gift Aid to goods donated to its charity shops. The move has been approved by HM Revenue and Customs albeit with a list of rules that must be followed.

How it Works - Normally Gift Aid cannot be claimed on the donation of goods - however, if the charity offers to sell goods on behalf of customers (rather than treat the goods as a donation) it can then claim gift aid on subsequent donations offered from the proceeds.

PDSA, Help the Aged and British Heart Foundation duly followed the example in Sue Ryder Care in seeking to claim a further 28% on the value at which donated goods sold in their shops. More charities are likely to adopt the scheme in the coming months.

HMRC Guidance on Gift Aid and Charity Shops

http://www.hmrc.gov.uk/charities/guidance-notes/chapter3/sectionf.htm#gg