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Gift Aid For Umbrella Charities

Many organisations do not have resource or skills in-house to register for and claim Gift Aid, due to size or lack of resources. However, there is still a way for these organisations to benefit from the  Gift Aid scheme. HMRC allows community groups and other voluntary organisations to register as an ‘umbrella charity’ and receive donations on behalf of a smaller organisation, claim the Gift Aid and then make payments (minus a small admin fee) to the organisations they represent, thus maximising the donation to the recipient organisation.

 It is a relatively simple scheme, with the umbrella charity just having to ensure that they are registered with HMRC for tax purposes, and are then allowed to give money to other organisations providing it is within their charitable objects to do so (and/or constitution).

 For more information, please see the Cabinet Office factsheet ‘Gift Aid; Umbrella Charities’ which can be found: http://www.cabinetoffice.gov.uk/media/cabinetoffice/third_sector/assets/umbrella_charities_factsheet.pdf