How does the Gift Aid Small Donations Scheme (GASDS) work?

Full answer

**What is GASDS?** The Gift Aid Small Donations Scheme (GASDS) was introduced to allow charities to claim Gift Aid-equivalent top-ups on small donations where obtaining a Gift Aid declaration is impractical — for example, cash collections at church services, street collections, or contactless payment terminals. **How much can a charity claim?** | Item | Figure | |---|---| | Maximum eligible donation per transaction | £30 | | Maximum total donations per year | £8,000 | | Top-up rate (equivalent to Gift Aid) | 25p per £1 | | Maximum GASDS repayment per year | £2,000 | **Example: St Mary's Church** The church collects £6,000 in cash plate collections over the year (all in amounts ≤ £30 per donor per collection). It claims GASDS: 25% × £6,000 = £1,500 from HMRC. No Gift Aid declarations needed. **Eligibility conditions** To use GASDS, the charity must: 1. Be registered with HMRC for Gift Aid 2. Have made Gift Aid claims in at least 2 of the 4 previous tax years 3. Not have more than £100 of penalties on their Gift Aid record in the previous 2 years **The matching rule** A crucial condition: the charity can only claim GASDS top-ups up to 10 times the amount it claims in regular Gift Aid in the same tax year. So if a charity claims £500 in Gift Aid, it can claim GASDS on at most £5,000 of donations (£1,250 maximum GASDS repayment). **Community buildings** Charities using a community building (churches, village halls, community centres) can claim an additional £8,000 GASDS allowance per community building used, subject to the same rules. **Payment processing** GASDS is claimed via the Charities Online portal, the same system used for Gift Aid claims. Records must be kept of donations (date, amount, method of collection) for at least 6 years.