Gift Aid Claim Procedures

Published: 30th January 2019

These are intended to show checks to be made before making the claim, to include all relevant gifts, and check that exclusions have been made correctly. Listed below are queries that should be used to prepare for making the claim, and a description of the process to undertake with each query. And then much further down the document will be the reports to prepare for the claim, and then how to actually make the claim on RE.

Remember that to be eligible for Gift Aid, a gift must be from an individual that we have a valid home address for (at the time of the claim), and must be from that individual’s personal taxable income. So that excludes gifts from a business account, family trust or foundation, or via CAF or other organisation that gives gifts to us having already used the relevant Gift Aid on the donor’s donations. Legacies are also not allowed to be included, but if a donor gives and then dies before we make the claim, we will still be able to claim for gifts made before their date of death. We must also have a valid Gift Aid declaration from the donor in each case.

 

Queries to check.

These are all in the Gift Aid folder in Query on RE.

 

Step 1

Search to find and eliminate GA on CAF gifts – this should be a nil report. If any results show, open up the donor’s record on RE, and change the tax status on the Gift to ‘Set as Not Qualified’. Run the query again to check that it shows as 0 results.

Step 2

Search to find and eliminate GA on CAF credit card – again, this should be a nil report, and update any records that do show, as with the first query, so that when the query is rerun, there will be 0 results.

Step 3

To take events out of possible Gift Aid claims – again, this should be a nil report, and these should be treated as with 1. And 2. Run the query again, to ensure that there are 0 results.

Step 4

Next claim with split gifts check – update date range to cover the period of the new claim. The query lists the gifts in ascending order of Gift Aid on the gift. Any rows that have a £0.00 in the amount need investigating. These will be cases where the gift is split between two funds, but where although the gift has been entered with two or more funds on RE, the Amount part of the Gift tab has not been divided accurately. This needs to be done, and each of the amounts needs to show as Apply Gift Aid Rules, so that the Gift Aid for each fund will have a positive total in. If gifts are left with a £0.00 in the Split Tax Claim Amount, this will cause the attempt to submit the Gift Aid claim to fail, and it will not give a clear explanation on the submission. So there must not be any rows that have a £0.00 in the field for Split Tax Claim Amount. This will almost always be a nil report, unless a new direct debit or cash gift has been set up without the Gift Aid part being checked.

Step 5

Next claim, lost donors – if there are any records on here, find time to access Trace IQ at a time suitable for the Prospect Research Team, and see if the donors can be traced on there. Use the first name and surname of the donor, and their date of birth if we have it, and see if there is an address linked to any that we have on RE as former home addresses, and especially if the last one is on there. If successful, update the donor’s address on RE, and add Trace IQ as the Source of the new address. If there is no way of finding the individual on Trace IQ, particularly if any possible new addresses drop the donor’s middle name or date of birth, and there are no other people who shared their previous address, then add an Attribute on the donor’s record to show as Gift Aid – Lost Address, and the date when you have updated this.

Open up the particular gift, and set the Tax part to ‘Set as Not Qualified’, and also if it is a payment on a recurring gift, open the original recurring gift, and update the Tax part on that in just the same way.

This will ensure that future instalments are never treated as eligible for Gift Aid, until we are sure that we have a valid new address. This query must have a nil report, before we try to make the claim.

Step 6

Next claim business preferred addresses – this query is to ensure that all those donors who have their business address as their preferred address, that we DO still have a home address, that David can adjust the donor’s address to on the date of the claim. So on the query we need the columns for Home Address Line 1 and Home Postcode to have information in that shows that they have a UK home address that we can swap to, and make the claim. Any rows on this query that have these two fields as blank, we should treat in the same way as the lost donors above, and try and find them on Trace IQ, and update their record either to show the new valid home address, or to make the gift not eligible for Gift Aid, and add the Attribute Gift Aid – Lost Address as in 5.

Step 7

Next claim with all home addresses left – again, update the date range to match the claim period. This query is for checks on the country and on the post code. The gifts are sorted in Preferred Country order first. So check the first and last records to see that all these show as United Kingdom. And any that don’t will need to be reviewed, to see whether we should update the tax status, or whether we should claim manually using our HMRC profile. They will not be able to be claimed on Raisers Edge, and would cause the claim to fail, if they were left in as eligible. For the post code, it is important to have a look through all the rows, and to see whether any of the post codes are missing a space between the two parts of the post code. This would cause the claim to fail, and the field on the claim would show the post code in question that caused it to fail. So it is better to check through, and to input a space into any row that is missing this space. There will not usually be too many of these, as for all direct debits and standing orders their address will remain the same. So usually only new one off donations could fall into this category of having the space missing. Sometimes a 0 is input in the post code as an O, or vice versa, and these are not so easy to spot at all!

Step 8

Gift Aid checks update for next claim – again, update the date range to match the claim period. This one can be looked at weeks before we start trying to make the claim, and can cover a wide date range. We are looking to ensure that we have seen proof of the authority from the donor for us to claim Gift Aid on their gift. So this query will show the gifts where we have not filled in the Attribute Gift Aid – Checked. So for Oral or Electronic declaration in the results, we should look on Actions on RE for the AF Donor Thank You letter. Open up the letter, and check that there is a paragraph on there to say ‘Your (Oral or Electronic) declaration made on … ‘ As long as this paragraph is on the letter, we can add the Attribute. For Written declarations, we should check the gift papers file, and have a look at the donation form, to see that the donor did indeed sign to agree Gift Aid, or ticked the relevant box. Gifts for major donors will usually have had this Attribute updated at the time the gift and/or pledge was added on to RE.

Step 9

Gift Aid lost addresses check – this is a query to monitor if any lost addresses are found, for people who have Gift Aid on any of their gifts. The results are listed in Preferred Address Line 1 order, so that those with any kind of valid address will show at the top of the list. If any of these show as Home and with United Kingdom as Preferred Country, then we should take steps to update these. We should delete the Attribute, and then go into relevant gifts that could still be claimed and change the Tax field to ‘Apply Gift Aid Rules’, so that these amounts will still be able to be claimed.

This should really be done from the date that we know the donor was at the new address. Follow the date from on the address tab, as the best guideline for this.