What is Gift Aid?
Gift Aid is a scheme available to charities, the means they can claim extra money from HMRC (UK Government department responsible for the collection of taxes).
A charity can claim an extra 25p for every £1 you donate. That is if you are a UK taxpayer and have paid the basic rate of tax and make the donation from your own funds. Gift Aid increases the value of a donation by 25%, at no extra cost. Gift Aid is an income tax relief designed to benefit charities.
PayPal Giving Fund and Gift Aid
If a donor would like to add Gift Aid to a donation, a Gift Aid declaration would need to be completed for the tax to not be reclaimed by PayPal Giving Fund and passed to the nominated charity. Donors can complete the declaration via the link in their PayPal Giving Fund receipt or by visiting www.paypal.com/donate/giftaid.
PayPal Giving Fund does not take deductions from Gift Aid. They file for Gift Aid with HMRC after delivering the original donation. While there can be HMRC backlogs that delay receiving the Gift Aid, they generally pass it on the month after the original donation is granted.
As PayPal Giving Fund is the charity that is registered with HMRC and as such makes the gift aid claim, no further visibility is available regarding gift aid declarations as this information is protected by GDPR policies.
How can charities track their Gift Aid through PayPal Giving Fund?
If a charity is enrolled with PayPal Giving Fund, they can view the Gift Aid payments via the PPGF dashboard, this will appear as a consolidated view in the monthly breakdown shown on the 'dashboard' tab. Unenrolled charities receive their Gift Aid included within their check payment and do not receive any donation data in accordance with GDPR policies.
How can donors track their Gift Aid through PayPal Giving Fund?
Currently the only way donors can track their Gift Aid amount is through their donation receipts received from PayPal Giving Fund. There is no record of PayPal Giving Fund Gift Aid in a donors PayPal account.
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