A fundraiser’s guide to getting Gift Aid right
Gift Aid adds 25% extra to eligible donations, a huge boost for any fundraising. But it’s also easy to get wrong.
If HMRC audits your charity and you can’t show how a donation links to a valid declaration, they can disallow your claim, even years later.
A clear audit trail helps you protect income, build donor trust and stay confident that every claim will stand up to scrutiny.
What HMRC expects — and what that means for you
Valid declaration — use HMRC-approved wording with an active opt-in (no pre-ticked boxes).
Informed donors — make sure supporters know they must have paid enough UK Income or Capital Gains Tax to cover the Gift Aid claimed and may need to pay any shortfall.
Traceable trail — link every claim from donor → declaration → donation → confirmation → HMRC submission.
Record retention — keep all related evidence for six years after the end of the tax year when the donation was received (two years for the Small Donations Scheme).
Getting these four things right protects your charity’s income — and your peace of mind.
You can read more about HMRC’s rule and expectations on their website.
Building a clean, reliable audit trail
Whether declarations come through a web form, paper, or phone call, your records should tell a simple story: who gave, what they agreed to, how it was confirmed, and how it was claimed.
Think of this as your “show me” list. If HMRC asks, you should be able to produce evidence for each line. For example, we recommend you take screenshots of online donation pages and online forms on a regular basis, so you can show the gift aid wording in place at a specific time.
Channel-specific essentials
Online forms
Save a PDF or screenshot of every live form version.
Archive old wording before updates.
Keep confirmation email logs (proof sent, not opened).
Retain data-level records from your donation platform showing that the donor actively opted in to Gift Aid — with the date/time, transaction ID and form version used. These back-end files are your proof that each declaration was made and linked to a specific donation.
Paper or event forms
Keep originals or scans securely for six years.
Check wording matches the HMRC model and includes a date.
Telephone or verbal declarations
Keep an audio recording or detailed call notes where you have monitored campaign calls.
Send written confirmation (email or letter) straight after.
Make sure every donor is told about their tax responsibility — that they must have paid enough UK Income or Capital Gains Tax to cover the Gift Aid claimed on their donations, and that they may need to pay any shortfall themselves (as required under section 424 of the Income Tax Act 2007). For online and paper forms, keep a copy of the wording used; for verbal declarations, record when the statement was read out.
HMRC: “You can accept a verbal declaration, but you must keep a record — such as an audio recording or a record of when the confirmation letter was issued.”
Map who owns what — and when
Gift Aid crosses fundraising, digital, supporter care and finance. Mapping how information moves between those teams is one of the best safeguards you can build.
Map who starts each stage, who checks it, and when it’s passed on. Gaps in timing are just as risky as missing data.
Trustees hold legal responsibility, but day-to-day accuracy sits with staff. Clear ownership of tasks and timing helps protect your trail.
Map your own process
Even the best systems break down when no one can see the full picture.
That’s why it helps to map your Gift Aid process from start to finish — showing who does what, when, and how information moves between teams. Doing this once can save you hours later. It:
Makes handovers between staff smoother
Shows exactly where records are stored
Reveals gaps before they become compliance issues
Helps you spot timing problems — not just missing data
We’ve created a Gift Aid Audit Trail Planner to help you do it.
It’s a simple worksheet you can copy into Excel or Google Sheets, with prompts for each stage, who’s responsible, where records live, and when they’re handed over.
👉 Download the Gift Aid Audit Trail Planner — free to use and adapt.
Review it throughout the year as a health check, or whenever your team, platform or process changes
Common reasons claims get rejected
Even the best systems break down when no one can see the full picture.
That’s why it helps to map your Gift Aid process from start to finish — showing who does what, when, and how information moves between teams. Doing this once can save you hours later. It:
Declaration wording incomplete or outdated
Missing donor details (no postcode, initials only)
Pre-ticked Gift Aid boxes
Claiming on ineligible donations (raffles, tickets, company gifts)
No evidence of confirmation being sent
Submitting without reconciliation
Records not retained for full six years
The takeaway
When every link — donor → declaration → donation → confirmation → claim — is traceable, your fundraising income is secure and your next audit’s a breeze.
Download the Gift Aid Audit Trail Planner — free to adapt and share.
Got questions and queries about gift aid?
Our team has conducted dummy gift aid audits, reviewed gift aid processes and helped charities get their gift aid forms in order.
Get in touch today with your question or to see how we can help.
