Gift Aid and GASDS for churches

The short answer

A church that is a charity claims Gift Aid and GASDS like any other charity. Regular givers who make a Gift Aid declaration add 25% to every gift. Small cash and contactless gifts in the plate, given without a declaration, can attract a GASDS top-up. Collections taken for another charity are the exception: the church can't claim on those.

Regular giving

A member who gives regularly, by standing order, envelope or card, only needs to make one enduring Gift Aid declaration. It covers their future gifts and those from the past 4 years, and HMRC doesn't require it to be renewed. Keep declarations that cover regular donations permanently. See Gift Aid declaration wording.

The collection plate

A gift in the plate from someone who has made a Gift Aid declaration, for example a member using a numbered or named envelope linked to their declaration, can be claimed as Gift Aid.
Cash or contactless gifts of £30 or less without a declaration can count towards GASDS, if the church has claimed Gift Aid in the same tax year.
For GASDS, record how much was collected, including each denomination of coins and notes, the date, and that no single gift was more than £30.

Collections for other charities

You can't claim Gift Aid on a collection taken in church for another charity, because that money isn't the church's income. If the church sets up its own fund to raise money for a charity, the money becomes the church's income, and the church claims any Gift Aid due.

Church buildings and GASDS

If the church carries out charitable activities in a building that meets HMRC's community building tests, it may be able to claim GASDS on up to £8,000 of small donations for that building. The tests, for each activity:

10 or more beneficiaries there at the same time, on at least 6 occasions in the tax year
beneficiaries aren't charged to use that part of the building
the activity is open to the public, or a section of it

Fundraising events such as jumble sales, concerts and dinners never qualify a building. Since 6 April 2017, small donations collected elsewhere in the same Local Authority area as a qualifying building can also count towards it.

If the church is connected to another charity that uses the same building, for example a church and its circuit, the £8,000 for that building is split between them, not doubled. Read HMRC's Chapter 8 before relying on these rules for a claim, and see our GASDS guide for more detail.

Limits to remember

GASDS is capped at 10 times the donations the church has claimed Gift Aid on in the same tax year. More declarations from regular givers raise that cap.
Claim Gift Aid within 4 years and GASDS within 2 years. See how to claim Gift Aid online.

Common questions

Can a church claim Gift Aid on a collection for another charity?

No, not on a collection taken for another charity, because that money is not the church’s income. If the church sets up its own fund to raise money for a charity, the money becomes the church’s income and the church claims any Gift Aid due.

Can we claim GASDS on the cash in the collection plate?

Yes, on individual cash or contactless gifts of £30 or less given without a Gift Aid declaration, as long as the church has claimed Gift Aid in the same tax year and stays within the GASDS limits.

Does a church building count as a community building for GASDS?

It can, if the church’s charitable activities there meet HMRC’s tests: 10 or more beneficiaries at once, on at least 6 occasions in the tax year, free to attend, and open to the public. Fundraising events do not count.

Our church shares a building with a connected charity. Do we each get £8,000?

No. When the claiming charity is connected to another charity, for example a church and its circuit, the £8,000 for a shared building is split between them, not doubled.

Sources

This guide is general information for UK charities, not tax advice. HMRC's guidance can change, so check the sources above before relying on it for a claim.