Changes to Gift-Aid giving

lucre.jpg I think quite a few people are aware of changes to Gift Aid in the UK as from April 1st but recently I’ve come across quite a few churches and organisations who are not, hence this blog post.
In actual fact ‘Gift Aid’ is not changing but the rate of income tax is going down from 22% to 20% and hence the money re-claimed from gift-aided donations will go down. It’s not a huge decrease but it will make a significant difference.
Where Charities were claiming back 28p for every gift-aided donation, they will now only get 25p.
So a Church/Charity that receives £50,000 in gift-aided donations would previously have been able to claim an additional £14,000. From April 1st this figure will now be (by my calculations) £12,500, a drop of £1,500
For Churches that employ youth workers/ministers this change could be significant and needs some pre-planning.