A new press release published by HM Treasury highlights steps that charities should take to ensure that fundraising at coffee mornings and bake sales can be eligible for Gift Aid.

Gift Aid can be claimed on charitable donations from taxpayers, but not when the money is given in exchange for goods. It is feared that many charity bake sales could be losing out because they directly charge for the item they are selling.

On the day of Macmillan’s Coffee Morning, which last year raised over £27 million to help support people living with cancer, the Minister is clarifying that by asking for donations instead of charging for food and drink, they can make the contributions go further. Macmillan has said that if everyone claimed Gift Aid on their Coffee Morning donations this year an extra £2 million could be raised.

The Exchequer Secretary to the Treasury, Robert Jenrick, said:

From the Great British Bake Off to Macmillan’s charity Coffee Mornings, baking is one of our favourite national pastimes and one that often benefits great charities. We want to support this bake-off fever.

Too many are missing out on an extra 25 per cent boost to donations, which is costing good causes dearly.

That’s why I’m clarifying the Gift Aid rules for anyone running a Coffee Morning. If you ask people to make a donation and offer them a coffee or cake, you could be making 25 per cent more on the funds you raise.

You can watch the Minister’s video on Twitter here. HMRC officials have been working with a number of members of the Gift Aid working group to ensure that their fundraising materials are clear about which activities are eligible for Gift Aid. If you would like your materials to be reviewed, please let us know at info@charitytaxgroup.org.uk and we can put you in touch with the relevant official.