Donations / Gift Aid Explained
HMRC operates a scheme called Gift Aid that allows charities to claim the basic rate tax on every pound donated. So if you donated £100 to Yogi Divine Society (UK), it means that you could actually be giving us £125. Giving under Gift Aid means that so much more money can be raised at no extra cost to you.
If you are taxed at the higher rate of 40%, Yogi Divine Society (UK) can still only reclaim tax at the basic rate of 20%.
However, higher rate taxpayers can also claim the difference between the higher tax rate (40%) and the basic rate (20%) on the total (gross) value of a donation made.
Use the Gift Aid calculator as a guide.