What will we cover? The Small Donations Scheme. Gift Aid Small Donations Scheme. What is it? The Small Donations Scheme

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1 1 What will we cover? 2 Gift Aid Small Donations Scheme Details of the scheme How to take advantage of the scheme Questions February 2016 Gift Aid Small Donations Scheme 3 The Small Donations Scheme 4 Introduced in Budget 2011 Small Charitable Donations Act 2012: became law on 19 December 2012 Took effect from 6 April 2013 GASDS or Small Donations Scheme for short Allows charities to apply for a Gift Aid style repayment On small cash donations of 20 or less Without the need to obtain Gift Aid Declarations for those donations The Small Donations Scheme Can claim top up payment on small donations of up to 5000 per tax year Same rate as Gift Aid tax rate = top up payment of up to 1250 per tax year Applies to money received from 6 April 2013 From 6 April 2016, donations up to 8000 = top up payment of up to What is it? Not Gift Aid Not a repayment of tax Government spending measure Complements, doesn t replace, Gift Aid Health warning Some specific C of E issues to complicate things! 6 1

2 What is a small donation? Cash donation from an individual 20 or less Coins and notes (any currency!) Not cheques, Standing Orders, online giving, text giving and Banked in UK 7 What can we include? Loose plate offerings Donations given in non Gift Aid regular giving envelopes providing: Donation is 20 or less Not a cheque Not covered by a Gift Aid Declaration Only donations - not fundraising, other income No donations with benefits 8 Benefits to us Potential 244,000 for churches in the Diocese of Liverpool (based on 2014 figures) If 8000 limit applied to 2014 figures, potential for 343,000 for Liverpool 15 million parishes nationally 9 Rules, rules, rules Eligibility rules The matching principle to prevent fraud. Connected charities Community buildings for fairness. 10 Is my church eligible? Been registered with HMRC for tax purposes for at least 2 years Made a successful Gift Aid claim in 2 of the last 4 tax years Without a 2 year gap No HMRC penalty in the last 2 years Why? Good Gift Aid claiming record assures HMRC that the charity has appropriate internal processes 11 The matching principle Total Gift Aid donations must be at least 10% of potential GASDS, in tax year Ie 1 Gift Aid donations for 10 GASDS Need 500 Gift Aid donations to claim on full 5000 Small Donations (GASDS) Must make Gift Aid claim for donations received in same tax year as Small Donations 13 2

3 The matching principle For example, from April 2016: Income: Gift Aid 600 GASDS 8000 Claim: Gift Aid 150 GASDS 1500 Because 10 x 600 = % of 6000 is 1500 Need 800 Gift Aid for full GASDS Or Gift Aid per week 14 Connected charities Rules to ensure charities that operate in a similar way, but are structured differently, receive same entitlements The limit on which a charity can claim top-up payment may be reduced if a charity is connected with one or more charities Rule also to prevent fragmentation Connected charities share 5000 allocation 15 Community buildings Maximum donations limit can be increased for charities running charitable activities in a community building Couple of rules: At least 10 people meet in the same building at least 6 times a year People must be beneficiaries of charity For us, Community building = church For us, charitable activity = religious services 16 Community buildings 5000 GASDS allowance for each building Buildings must be separate Buildings can include: Church Community hall School 17 Some buildings are excluded Excludes buildings, or part, used wholly or mainly for residential purposes, or sale or supply of goods. For example: Vicarage Residential care home Charity shop 18 But, these are single buildings: Buildings on same or adjacent land Church and church hall School with several buildings Church with a garden shed Just one allowance of 5000 GASDS each Think: Have you any other buildings you can include? 19 3

4 The Church of England position Initially HMRC judged PCCs to be connected charities for the purposes of the scheme We all shared 5000 Top up allocation We could only claim on Community Buildings element of the scheme What s changed? HMRC now agreed PCCs not connected 20 What do you claim? Are you: a single church parish? Claim on the top up element of the scheme OR a multi church parish? Claim on the community buildings element of the scheme 21 Top up element - what do you claim? Include small cash donations: loose offerings regular non gift aid envelopes in wall safes received outside the building, eg home communions Up to a maximum of 5000 per tax year 22 Top up element - what can t you claim? Donations for tea/coffee for votive candles flower festival anything with a benefit 23 Buildings element - what do you claim? 24 Buildings element - what can t you claim? 25 Up to 5000 for each separate church building Collected in the building During religious activity Only when 10 people present, at least 6 times a year Include: Loose offerings Regular non gift aid envelopes Other donations in the building during services Donations received outside the building in wall safes for tea/coffee for votive candles flower festival 4

5 Can you claim on both elements? The complicated answer! Yes, but Have you reached 5000 per church? Yes then claim no more No ask: is the amount worth it? Records must clearly show which donations fit with which part of the scheme NEVER exceed 5000 per church or nationally, C of E will lose concession 26 What records do you need? HMRC require evidence Deposit slips of banked cash in UK Should be more than GASDS amount Vestry forms showing eligible cash donations Date and evidence of numbers These should not be new! May need a little alteration 27 Simple vestry sheet example St Somewhere's Church Date: Vestry Record Location:. 28 National church: vestry sheet example St Agatha's Church, Anywhere Vestry Record Date: Regular Giving Envelopes One-off Gift Aid Envelopes 1 Open Plate and Non-Gift Aided Donations 2 10 or more attending? 3 29 Attendance 10 or more? Y / N Potential Gift Aid Small Donations Scheme Include: loose plate offerings and donations Notes: No of Envelopes: No of Envelopes: Eligible for GASDS Not Eligible for GASDS Non-Donations 4 Notes Coins p 20p 10p 5p 2p 1p Total cash Cheques Eligible Not eligible 5 Coins: p 20p 10p or 5p 2p or 1p Cheques GRAND Please complete this sheet in conjunction with the 'Vestry Record Notes' provided. Signed... and... Signed and Your turn! Exercise 1 On your offering plate: 50 note 20 and 10 note in rubber band 2 x 20 note 3 x 10 note 6 x 5 note 12 x 1 coin 5 x 50p 7 x 20p 11 x 10p 14 x 5p 10 x 2p 13 x 1p Unmarked envelope containing 10 and 5 note Cheque for 10 Envelope marked "Magazine" with 9 1 coins 30 Vestry procedure: best practice Count immediately after service 2 people. Both to sign. Count loose offerings separately. Analyse cash. Separate Gift Aid & non-gift Aid envelopes (if known) Mark envelopes with contents If cheque, mark envelope with cheque Balance total envelope cash with total on envelopes Total all offerings Record in Parish registers Reminder: Keep 1 month s sample, marked contents 32 5

6 33 Gift Aid 07/04/2013 Chq 14/04/2013 Chq 21/04/2013 Chq 28/04/2013 Chq Total Apr Total Gift Aid Non Gift Aid Eligible small donations Not eligible Gift Aid 07/04/2013 Chq 14/04/2013 Chq 21/04/2013 Chq 28/04/2013 Chq Total Apr Total Gift Aid Non Gift Aid Chq Chq Eligible small donations Not eligible Name on Declaration = name on envelope list = taxpayer 35 Gift Aid? 07/04/2013 Chq 14/04/2013 Chq 21/04/2013 Chq 28/04/2013 Chq Total Apr 1 Y Chq Y Y Chq Y Y Gift Aid Eligible small donations Not eligible Your turn again! Exercise 2 Gift Aid? 07/04/2013 Chq 1 Y Chq Y Y Y Gift Aid Eligible small donations Not eligible (non Gift Aid) 36 Example vestry sheet part 1 St Somewhere's Church Date: Vestry Record Location:. Attendance more than 10? Y / N 38 Example vestry sheet part 2 St Somewhere's Church Vestry Record Cash breakdown Date: Location:. Attendance 10 or more? Y / N 39 Offerings summary Gift Aid regular giving envelopes Other regular giving envelopes Other fund... regular giving envelopes One-off Gift Aid envelopes (itemised elsewhere) Other. Other. Other income.. Potential Small Donations Scheme (GASDS): Loose offerings Donations Other (eg restricted donations). Potential GASDS Eligible Not eligible All Other Notes 50 Notes Coins 2 Coins p 50p 20p 20p 10p 10p 5p 5p 2p 2p 1p 1p Total cash Total cash Cheques Cheques 6

7 Include: loose plate offerings and donations The Gift Aid Small Donations Scheme (GASDS) only applies to cash donations of 20 or less. 50 notes and cheques should be recorded in the right hand column. Any donations that are know n to be over 20 from an individual donor (e.g. tw o 20 notes in an envelope, or secured w ith an elastic band) should be recorded in the greyed cells. St Church on the Hill, Hillytown Collections on:.. Attendance 10 or more? Y / N Potential Small Donations Scheme Gift Aid Envs Other Envelopes Mission Envs Eligible Not eligible Example vestry sheet Notes Coins p p p 11 5p 12 2p 13 Tot Tot 1p 14 Total cash 15 All Monies Cheques Gift Aid envelopes (1-15) Other envelopes (16-25) Mission envelopes Tot Notes Coins p 20p 10p 5p Loose money / donations - GASDS eligible Loose money / donations - not GASDS eligible Other. Other. COLLECTIONS 2p 1p Total cash Cheques Signed and St Somewhere's Church Location:. Small Donations Scheme Tracker Date Open plate Non Gift Aid regular envelopes Non Gift Aid Other donations Total 07/04/ /04/ /04/ /04/ /05/ /05/ /05/ /05/ /06/ /06/ /06/ /06/ /06/ Total Qtr /07/ /07/2013 Total GASDS Summary Claim date Total Qtr /08/2013 Total Qtr 2 Total Qtr 3 Total Qtr 4 TAX YEAR Ensure sufficient Gift Aid donations for same period 42 What do you need to do? Get the right recording procedures now! Amend or add to your vestry sheet If needed, method for including regular giving envelopes (non Gift Aid) Decide which buildings and find out address including postcode Claim 2013/2014 by 5 April 2016 Keep claiming Gift Aid, regularly including one-off Gift Aid envelopes. 25% guaranteed! 43 How do you claim? Using the new(ish) claims procedure: Charities Online Diocesan Scheme parishes: We will ask for additional information: Top up or community buildings claim? Confirm address of eligible buildings, where relevant Amount of GASDS in each building Otherwise, will claim as normal Non Diocesan Scheme parishes: next part Claim GASDS within 2 tax years 46 Claiming process Charities Online live from 22 April 2013 Three options: 1. Claim using online form 2. Claim using own software database 3. Claim using a paper form 47 7

8 Option 3 paper form 48 Option 2 software database 49 For those who don t have internet access Paper ChR1 replaced old R68i Order from HMRC Fill in by hand: one box per character For 15 donors (up to 90 with continuation sheets ChR1CS) Cannot use photocopies Automatically scanned by HMRC Intended for more than 1000 donors, can be used for any number Claim directly from own internal database or system Software provider needs to work with HMRC to ensure compliance Check your software can do this You need to sign up to Charities Online Option 1 online form Up to 1000 donors per claim Sign up to Charities Online Log on to Government Gateway - once Enrol to use HMRC Charities Online Register and activate service Download schedule spreadsheets from HMRC

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11 67 Gift Aid schedule spreadsheet Get the right software: Excel 2010 for Windows Excel 2011 for Apple Mac OS LibreOffice for Windows, Apple Mac, Linux Spreadsheet is in Open Document format:.ods Must use correct version for correct software, otherwise may not work when you claim Information required

12 /publications/gift-aidschedule-spreadsheetsto-claim-back-tax-ondonations

13 79 80 For top up element 81 For community buildings element 82 Answer YES Answer NO Answer NO Answer NO Answer YES Answer NO

14 About the organisation Name of Charity Regulator? Either PCC registered with Charity Commission: Select: Charity Commission. Enter: Reg number OR PCC not registered Select: None Is claim being made by corporate Trustee? Answer: No For top up element For community buildings element 14

15 91 92 What do you need to do? Decide how you will claim Keep your PCC informed Check your Gift Aid donor information is correct use Electoral Roll? Claimed GASDS 2013/2014? You must claim by 05/04/2016 Concerned? Consider joining the Diocesan Gift Aid Scheme Diocesan Gift Aid Scheme Existing system, provides continuity Declaration checking & storage Claims prepared Online claiming done for you Gift Aid secretary support Gift Aid audits Fee = 5% tax claim More information Kim Stanley kim.stanley@liverpool.anglican.org Resources Department resources.team@liverpool.anglican.org

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17 Summary Cash donations 20 or less Not covered by Gift Aid declaration For community buildings: Given in the building During religious service 10 or more people Maximum 5000, soon 8000, per church Banked in UK, more than GASDS amount Demonstrate all the above Claim 2013/2014 by 5 April to manage church finances Thursday 9th June 2016 All Saints, Wednesday evening, 19th October at St Francis of Assisi, Kitt Green, org/finances Technical updates on accounts and Gift Aid New resources available Guidance for new treasurers and Gift Aid secretaries Workshops: Friends, legacies, digital giving, Parish Giving Scheme Soul food for all engaged in finance and stewardship in the local church Gives us your feedback at: 17