Registered charity No. 1141587
A company limited by guarantee No. 752663
Gift Aid - What is it?
Gift Aid allows UK charities to claim back the basic rate tax already paid on donations by the donor.
This means they can claim back from the government on your behalf 25p for every £1 donated, boosting the value of the donation by a quarter.
How does Gift Aid work?
When a UK taxpayer gives a gift of money to a charity, tax has already been paid on that money. Because voluntary organisations are exempt from tax, you can claim this money back from HM Revenue & Customs (HMRC).
How is Gift Aid calculated?
Under HMRC’s Gift Aid scheme, charities can reclaim an amount equal to basic rate tax (20%) on the amount of the donation, plus basic rate tax already paid by that taxpayer on that donation. For a £100 donation, the fraction applied to calculate Gift Aid is 100 x 20/80, which is 25% of £100 which equals £25. This means that the charity receives £125 for a £100 donation.
Why are some donations not eligible for Gift Aid?
Donations from non-UK taxpayers are not eligible for Gift Aid and HMRC regulations also mean that Gift Aid can’t be reclaimed on a donation if:
the donation was on behalf of someone else or a group of people
the donation was on behalf of a company
the donation was to a family member or friend doing an event where the charity is contributing to their costs
the donation was made in return for goods, rights or services.
Someone made a mistake when making their donation and Gift Aid hasn’t been claimed – what can I do?
Once a donation has been made it isn’t possible to adjust the Gift Aid on it, it must be refunded and the donation made again.
How do you get recognition from HMRC for your charity?
You must register your charity’s details with HM Revenue and Customs (HMRC) to get tax back on things like Gift Aid donations, using the Government Gateway
To register have the following charity information at hand:
bank account details and financial accounts
trustees details including dates of birth and National Insurance numbers
registered charity number
charitable purposes of your organisation
your charity’s constitution (governing document)
Originally, declarations had to be made in writing but they can now be made orally, although the charity must confirm the declaration in writing and keep a copy of the confirmation.
Social Impact Bonds and How They Work
In most public service payment-by-results contracts, a charity must use its own money to roll out the programme, hoping that it will achieve good enough results payments to cover the costs. A Social Impact Bond (SIB) takes away the financial risk from both the government, which commissions the programme, and the charity delivering the service, because social investors (the likes of Big Society Capital) step in to cover the costs up-front.
SIBs were designed to help reform public service delivery, improving the social outcomes of publicly funded services by making funding conditional on achieving results. Investors pay for the project at the start, and then receive payments based on the results achieved by the project when the measured outcomes are achieved.
To secure a SIB for your project you must first of all outline your project running costs and targets. The next step is to team up with a specialist go-between such as Social Finance and put together a bid to attract investors. The bid is then submitted to the commissioner (the government in the case of The Life Chances Fund) who decides whether to award the contract. Usually the projects are assessed at regular intervals (monthly) and payments on results made accordingly.
If you are considering a SIB you must have very good performance management processes in place and be absolutely sure you can deliver the outcomes otherwise a SIB is probably not a suitable funding method for your organisation.
Your outcomes should:
be measured easily and accurately
be linked directly to an intervention
save money, either by directly reducing costs or by avoiding future cost
some of the money saved is cashable or highly socially beneficial
Benefits of the SIB are that they encourage new ideas for projects that tackle difficult problems and provide funding for prevention and early intervention services that would have difficulty securing funding. The SIB also ensures that evaluation of project outcomes is regular and accurately highlights what is working in the project and what is not. The expectation for the future is that government will be funding cost effective programs that ‘work’ and attract new forms of capital to the social, educational and healthcare sectors.
To find out more read the government introduction to SIBs by clicking here.
SPOC = Single Point of Contact
A decline in grant funding and the trend towards bigger and bigger contracts are making things tougher than ever for small charities. Public sector grants have been replaced in most instances with contracts, often with complex commissioning processes making it very challenging for smaller charities to bid for and operate contracts. This means that funding is falling faster for small charities than for bigger ones which is unfortunate because smaller, more personalised services provided by smaller organisations are more cost effective, provide better outcomes and are more popular with the service users.
The vast majority of voluntary organisations are small. According to the Charity Commission there were 166,311 registered charities in the UK in September 2016 and less than 7%, just 11,079, had income of over £500K. Research shows that funding from local and central government for small and medium sized charities fell by 44 per cent between 2008/09 and 2012/13.
There is now a growing interest in making sure that public service delivery involves smaller organisations and not just the bigger ones and that has given rise to the SPOC as a viable and valuable option to address the problem. The Single Point of Contact Model is a single organisation (or possibly partnership of organisations) through which a commissioner can work with a broad range of Voluntary organisations through a single grant or contract. The SPOC enables the commissioner to design services reflecting the needs of local people and communities. The SPOC works with a partnership of local organisations to deliver the work through contracted arrangements. The SPOC takes on the contract management, monitoring and administration, meaning commissioners only need manage one contract against commissioning outcomes. The SPOC is paid to performance manage the delivery organisations, allowing commissioners to focus on outcomes.
Its success comes from removing much of the competition and rivalry created by most procurement processes, and replacing it with cooperation. Charities are encouraged to work together to share intelligence and ideas. Instead of a single charity pretending to have all the answers to everyone’s problems, the SPOC model encourages charities to provide different elements of the support an individual may need, according to their own expertise. They can do this safe in the knowledge that they are not jeopardising their prospects of getting future funding by giving away valuable intelligence.
Everywhere this model is in operation, it is a success. In South Yorkshire, for example, Voluntary Action Rotherham act as a SPOC, allowing around 20 smaller charities to provide services local people need. It is also the model that the Big Lottery Fund is using for its multi-million pound Fulfilling Lives programmes.
Read the full report here
Pound for Pound
Did you know that 5% of the public would consider donating the old pound coins they have squirrelled away around their homes in jam jars and piggy banks?
This is a significant opportunity for you to fundraise as the October date for the withdrawal of the old coins approaches (15/10/2017).
Previous updates in coins or notes have resulted in successful fundraising opportunities for charities, such as the #firstfiver campaign. According to CAF (Charities Aid Foundation), the campaign which asked the public donate their first new £5 note to a charity of their choice, may have reached as much as £12.5 million.
The Royal Mint will also be supporting charity fundraising centred around the donation of old pound coins using the hashtag #PoundForPound, to encourage people to donate old pound coins on receiving a new one.
This is a significant opportunity for you to fundraise and here are some ideas to get you started:
1. Pound for Pound - Encourage your supporters to donate an old pound coin for every new one they receive ( use #PoundforPound on Twitter).
2. Put a value on your pound - Tell your supporters what you will do with their pound. How many pounds do you need to reach a certain target? How many coins would it take to provide a specific service or support a beneficiary?
3. Prizes for pounds - Raffles and prize draws have been one of the more creative ways charities have been fundraising around the new pound. Think about whether your organisation could sell raffle tickets for a round pound and supporters could win prizes or even more new pounds.
4. Round pound pictures and piles - Inspire people to donate their old pounds by planning something creative. See who can make the tallest pound pile and longest pound line or get kids involved by making pictures out of their old pounds.
5.Collection boxes - The traditional collection boxes for this sort of campaign are one of the best fundraising tools. Why not offer your supporters and local businesses collection boxes and tweet/Facebook their locations.
6.Charity Shops - If you have a charity shop make sure you let shoppers know that they can spend or donate their old pounds in the shop.
7.Piggy Banks and Jam Jars - It’s estimated that there is around £1.3bn stored up in piggy banks and jars across the UK and over a third of this is likely to be made up of old pounds. Why not think of an interesting way to encourage your supporters (friends and family) to donate those hoarded pounds to you.
8.Gift Aid - Make sure you check if your charity is eligible for the Gift Aid Small Donations Scheme. The scheme enables charities to claim a Gift Aid style top-up of 25% on cash donations such as bucket collections, without the need for written declarations from donors. Remember you can’t claim on all activities, such as raffles and you do need to have claimed some normal Gift Aid on other donations, see the article below on how to sign up.
9.Social Media - Use the #PoundforPound hashtag on twitter to promote your fundraising around the new coin. Use Facebook to let your followers know what you’re doing.
As the public becomes increasingly aware that the old coin will be removed from circulation in October, there are likely to be other opportunities and campaigns that you can use to draw attention to your own pound fundraising. Take a look at the Royal Mint’s Repatriation Round Pound Stakeholder Toolkit which includes downloadable resources, imagery and the donation bucket gif for charities to use on social media.
If you need further or more specific funding advice please complete our fundraising contact form and let us help you!
We are delighted by the news that 2 of our organisations have been successful in their applications to the London Marathon Charitable Trust. West End Bowls Club in Surrey Heath have been granted £100,000 to extend their existing club house and Camberley Rugby club will receive £30,000 towards the building of a ladies changing facility.
The Trust welcomes applications for funding for Capital expenses of projects that increase the number of physically inactive people participating regularly in sport and physical activity. Applications are accepted from projects located in all areas where London Marathon Events Limited organises mass participation events. Since the first Prudential RideLondon festival of cycling in 2013 more than £2.5million has now been awarded by The Trust to 72 projects across Surrey.
They aim to fund projects that will be open to the local community for a significant proportion of each year and that have realistic plans for their long term sustainability without additional funding after the capital project is complete Sarah Ridley, Chief Grants Officer of The London Marathon Charitable Trust said: “We’re delighted to provide support to these great projects across Surrey. All of them will support our aim to get more people physically active and playing sport.”
The extension to West End Bowls Club will allow year round short mat bowls and low impact exercise classes aimed at getting older people more physically active. This will be especially valuable to older members in the winter months when outdoor activities are limited. Trevor Lofty, President of the West End Bowls Club, said: “We are extremely delighted to receive this substantial grant from The London Marathon Charitable Trust. Their contribution to the cost of extending our building will allow us to make much more use of our facilities, taking it from summer only use to year round use. It will also allow us to initiate indoor short mat bowls throughout the year. Our objective is to provide a facility that encourages people, of all ages, who are currently inactive to be active, improving their health and reducing social isolation.”
Camberley RFC would like to encourage more women players by constructing a new self-contained female changing room to improve the facilities for women and girls at the club. Their former president Roger Chamberlain said: "Camberley Rugby Club, and particularly our Girls and Youth sections, are most grateful and excited with the grant offer received from The London Marathon Charitable Trust. This will enable the Club to construct a new self-contained changing room for Girls and Ladies playing the game, ably supported by our two international England players, Fran and Alex Mathews, who have been on the England Women RFU books since it was formed nearly three years ago. The lack of these facilities has previously held back our development of this sector of rugby in Camberley and meant any aspiring female players have had to leave our club and move to others. With a number of schools to draw on throughout Surrey Heath and the surrounding area, this project will really help the youth players expand from the present numbers of almost 600 players."
If you are inspired by the success of these local clubs and have a sports facility idea that needs funding, the next deadline for The Trust’s 2 grants schemes is 17th October 2017, with new deadlines for 2018 to be announced in the near future.
Small Capital £5000 - £20,000
Major Capital grants £20,001 - £150,000
For application forms, guidance and frequently asked questions have a look at their website and we are always happy to help you with questions and proof reading.