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A missed opportunity: Gift Aid on trustees’ expenses

22nd January 2024

Gift Aid is a well-known tax relief that allows charities to claim an additional 25% on eligible donations. However, there is a lesser-known opportunity that many charities may be overlooking – Gift Aid on trustees’ expenses. By creating an expense policy and encouraging trustees to donate their expenses back to the charity, organisations can unlock a valuable source of additional income. In this article, Rowleys’ Head of Charities, Lisa Parkes, delves into this untapped potential and shares more on the benefits and considerations surrounding Gift Aid on trustees’ expenses.

Understanding Gift Aid on trustees’ expenses

To claim Gift Aid on trustees’ expenses, a charity must have an expense policy in place, ensuring transparency and accountability. This policy should clearly define the types of expenses that qualify for reimbursement, such as travel, accommodation, and other costs incurred by trustees in the course of fulfilling their duties. Crucially, these expenses should not be related to the purchase of goods or services, as the normal Gift Aid rules for those transactions already apply.

The mechanism for claiming Gift Aid on trustees’ expenses involves trustees personally paying their approved expenses and then choosing to donate them back to the charity. The trustee must be a UK taxpayer, as this is a requirement for Gift Aid eligibility. By making a Gift Aid declaration, the trustee allows the charity to claim the basic rate tax on their donation, boosting the value of their gift by 25%.

Benefits for charities

Considerations for charities

Gift Aid on trustees’ expenses represents an untapped opportunity for charities to add to their funding streams. By establishing an expense policy and promoting the option for trustees to donate their expenses back to the organisation, charities can unlock additional income and further their charitable activities. It is essential for charities to communicate the benefits and procedures clearly while respecting the voluntary nature of trustees’ participation.


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