JustGiving, the fundraising intermediary, has welcomed HMRC’s decision to update its Gift Aid guidance. Under previous HMRC instruction, thousands of charities had Gift Aid claims withheld, because messages accompanying individual donations included the names of more than one family member. Now HMRC has agreed to permit Gift Aid claims for this type of donation, many charities will now receive Gift Aid income they thought they had lost.

Numerous charities had seen claims withheld in the past because of such messages and concerns have regularly been raised. CTG received confirmation earlier this year that such practice was based on a misinterpretation of the Gift Aid guidance, and HMRC has now decided the amounts for these claims will now be taken back by JustGiving and returned to the charities in question, for claims dating back as far as November 2015. This will happen in two tranches, with the total amount reclaimed worth over £1.9m to the sector. With evidence of some charities receiving as much as £196,000 it is clear that this “misinterpretation” has put a lot of money at stake.

Reports relating to these funds will also be available in the relevant JustGiving charity accounts, providing a full breakdown of the funds received. Donors who have been affected will see Gift Aid confirmations visible on pages, alongside their donations.

In line with the new guidelines, JustGiving has also agreed to include supplementary questions within the Gift Aid declaration process to help donors make accurate Gift Aid declarations and minimise the risk of error.