Church giving glossary: Gift Aid, charity and payment terms explained

Gift Aid and tax

Gift Aid

A UK tax relief that lets a charity claim 25p from HMRC for every £1 given by a UK taxpayer who has made a Gift Aid declaration. See how to claim Gift Aid.

Gift Aid declaration

A giver’s statement that they want the charity to claim Gift Aid on their gifts, and that they pay enough UK Income Tax or Capital Gains Tax to cover it. See Gift Aid declaration wording.

Enduring declaration

A Gift Aid declaration that covers all of a giver’s future gifts, and any made in the past four years, until they cancel it.

Oral declaration

A Gift Aid declaration made by phone or in person. The charity must send the giver a written record before claiming, and the giver can cancel within 30 days of receiving it.

HMRC charities reference

The reference HMRC gives a charity once it recognises it as a charity for tax purposes. A church needs it to claim Gift Aid.

Authorised official

A person a charity nominates to deal with HMRC about its tax affairs, including Gift Aid claims. A charity can have up to two.

Charities Online

HMRC’s online service for sending Gift Aid and Gift Aid Small Donations Scheme claims.

Form ChR1

HMRC’s paper Gift Aid claim form, for charities that can’t claim online.

Aggregated donations

On a Gift Aid claim, gifts of £20 or less from different givers can be added together on one line, up to £1,000 a line, without listing each giver.

Donor benefits

Thank-you gifts or other benefits a giver receives because of their gift. Within HMRC’s limits they don’t stop a gift qualifying for Gift Aid.

Gift Aid Small Donations Scheme (GASDS)

A scheme that lets charities claim a Gift Aid-style top-up on cash and contactless gifts of £30 or less, on up to £8,000 of gifts a year, without declarations. See the Small Donations Scheme.

Matching rule

The GASDS rule that the small donations a charity claims on can’t be more than ten times the Gift Aid donations it claims on in the same tax year.

Community building

For GASDS, a building where a charity carries out its activities with at least ten people taking part, on at least six occasions a year. Each one can bring its own allowance.

Higher-rate relief

Extra tax relief that higher- and additional-rate taxpayers claim for themselves on their Gift Aid gifts, through Self Assessment or their tax code. See giving statements and tax relief.

Tax year

The UK tax year runs from 6 April to 5 April. Gift Aid, GASDS and giving statements all work in tax years.

Charities and the law

Charity Commission

The regulator for charities in England and Wales, which keeps the public register of charities.

OSCR

The Office of the Scottish Charity Regulator, which registers and regulates charities in Scotland.

CCNI

The Charity Commission for Northern Ireland, which registers and regulates charities in Northern Ireland.

Excepted charity

A charity in England and Wales that doesn’t have to register with the Charity Commission, including churches of many denominations with income of £100,000 or less, until 31 March 2031. See does your church need to register?

CIO

A charitable incorporated organisation: a legal form for charities that gives trustees limited liability. In England and Wales a CIO must register whatever its income.

Trustees

The people legally responsible for running a charity, including its finances. In a church they might be the PCC, elders, deacons or a church council.

PCC

The parochial church council, which is responsible for a Church of England parish’s finances and is a charity in its own right.

Restricted fund

Money given for a particular purpose, such as a building appeal. It must be spent on that purpose.

Unrestricted fund

Money a charity can spend on any of its purposes, such as a church’s general fund.

Designated fund

Unrestricted money the trustees have chosen to set aside for a purpose. Unlike a restricted fund, they can change their minds.

Payments

Giving platform

The service that provides your giving page and records gifts, and often handles receipts, regular gifts and Gift Aid. See choosing a giving platform.

Payment provider

The regulated company that processes card and Direct Debit payments and pays the money into your bank, such as Stripe.

Card fee

What the payment provider charges to process a gift, such as 1.5% + 20p for a standard UK card with Stripe. See card fees on donations.

Platform fee

What the giving platform charges, as a percentage of gifts, a flat monthly fee, or both.

Cover the fees

An option for givers to add the card fee to their gift, so the church receives the whole amount.

Payout

A transfer of received gifts from the payment provider to your church’s bank account.

Bacs Direct Debit

The UK’s Direct Debit system, used to collect regular payments from a giver’s bank account with their permission.

Direct Debit mandate

The giver’s instruction allowing an organisation to collect Direct Debit payments from their account.

Direct Debit Guarantee

The protection that entitles a giver to a full and immediate refund from their bank if a Direct Debit payment is taken in error.

Standing order

A regular payment the giver sets up at their own bank. Only the giver can change or stop it. See regular giving.

Contactless

Paying by tapping a card or phone on a card reader. Contactless gifts of £30 or less can count towards GASDS.

Apple Pay and Google Pay

Ways to pay with a card saved on a phone. They cost the same as the card behind them.

Dispute

When a cardholder asks their bank to reverse a payment, also called a chargeback. Payment providers usually charge a fee for each one.

PCI DSS

The security standard for handling card details. A giving page that sends card details straight to the payment provider keeps your church out of most of it.

QR code

A square code that opens a web address when scanned with a phone camera. See QR code giving.

Embed code

A short piece of code that places something, such as a giving form, inside a page on your website. See adding a donate button.

Giving in church

Offering

The moment in a service when gifts are collected or offered, also called the offertory or collection.

Retiring collection

A collection taken at the door as people leave, often for a particular cause.

Planned giving

Regular, committed giving, by standing order, Direct Debit, card or envelope, which lets a church plan ahead.

Envelope scheme

A planned giving scheme in which each giver has numbered envelopes for their weekly gift, recorded against their number.

Stewardship

Christian teaching about using money, time and gifts generously and responsibly. Many churches hold a stewardship or giving season each year.

Tithe

Traditionally, giving a tenth of one’s income. Many Christians use it as a guide rather than a rule.

Appeal

A fundraising campaign for a particular project or cause, usually with a target.

Giving statement

A yearly summary of a giver’s gifts, usually for the tax year. See giving statements.

Legacy

A gift to a church or charity left in a will.