It couldn't be easier for donors to donate to charity.
The charity recovers basic rate tax (25p for each £1 received).
There is no minimum donation.
It can be used for regular giving not just one off donations.
The donor's written declaration can cover donations in the past and the future.
The declaration can be verbal and charities do not need to write in confirmation, however they do need to retain relevent internal records and will still need to retain the copies of the written confirmation held from before 1 November 2005.
Taxpayers can nominate a charity to receive all or part of the tax repayment that is due to them.
There are also provisions which enable an individual to give land or building to a charity and obtain tax relief.
Gift Aid can also be claimed on goods that have been donated to a charity. Under the Retail Gift Aid rules the charity effectively sells the goods as agent and then the sale proceeds are donated to the charity.
