Gransnet forums

Charities

Setting up gift aid for a small organisation

(4 Posts)
nana5852 Sun 22-Dec-24 09:53:14

I volunteer in a local charity shop. A couple of years ago the major charity that ran it pulled out. It has been taken over by a small local group. Since the change I have been nagging for us to register for gift aid. Yesterday I was told that there are no plans to set up gift aid for the shop. Apparently it is a huge task which would involve taking on a member of staff and therefore not cost effective.
I am dubious about this. Surely smaller organisations can set up a gift aid scheme without needing to employ people..... if they need staff wouldn't it just be for an occasional few hours admin? I'm confident that someone on this forum will have experience or knowledge about this and can help me understand, challenge or, reluctantly, come to terms with this decision.

Lathyrus3 Sun 22-Dec-24 10:59:55

I’m assuming your shop has official independent Charity status that is recognised by HMRC and the Charities Commission and not just a shop that passes on its takings to the former major Charity.

Setting up Gift Aid is a legal process and quite a responsibility for a volunteer. There is guidance from HMRC so it is possible. It is the ongoing commitment of registering each donor and donation, ongoing as each new donor joins, producing the spreadsheets for HMRC and making the claims, informing each donor of their contribution, that is time consuming.

I think you would need a volunteer who is willing to commit a number of hours on a weekly basis and to take on not just the process but also the legal responsibilities. It would be very easy to get in a muddle if it was done on an occasional basis or if it was shared amongst all volunteers.

Unless you have someone who has had similar responsibilities in a past job, I can see that most volunteers would be reluctant.
I have done similar work in the past but I wouldn’t want the responsibility and ongoing time commitment now.

nana5852 Sun 22-Dec-24 12:36:49

Thank you for taking the time to give me a thorough response. I had, erroneously, assumed it might only involve an hour or two of admin a week. There is an admin worker but she doesn't want additional hours.

Lathyrus3 Sun 22-Dec-24 19:56:30

I think if you take a look at the HMRC website Guidance on Gift Aid , you’ll get a (horrified) idea of how complex it is and how many pitfalls there are😬