PTAs are always looking for ways to raise money for schools. Organising fetes, competitions and sponsored events take considerable effort and every penny counts. These school fundraising ideas provide resources that enhance opportunities for the pupils.
One way to boost takings is to apply for Gift Aid. It requires registering your PTA as a charity, additional paperwork and it isn’t possible to claim Gift Aid on every donation, so is it worth it?
Can PTAs Claim Gift Aid?
Gift Aid is a Government scheme charity relief scheme. They offer to contribute 25p for every (qualifying) £1 donation. If your school’s sponsored event raises £1,500, Gift Aid has the potential to increase this to £1,875. Over the year, this additional contribution could make it easier to hit those fundraising targets.
To qualify, your PTA must:
- Be a registered charity
- Only claim Gift Aid on qualifying donations
- Receive a signed Gift Aid declaration from all donors
- Complete the required HMRC documents (online)
The additional Gift Aid donation is taken from the donor’s income tax or capital tax payment. Therefore, although all PTAs can Claim gift Aid, only donors who pay UK taxes can agree to Gift Aid their payment.
Registering the PTA as a Charity
As Gift Aid is a charity scheme, it is only available to registered charities. Your PTA may already be a registered charity, but if not, it is relatively straightforward. A step-by-step process is available on the Government website under setting up a charity. To confirm registration, the PTA will receive a charity number.
As a registered charity, you can register with HMRC for Gift Aid. Once approved, your PTA will receive a Government Gateway User ID and Password. This is used to access the HMRC site to complete the paperwork online. The Gift Aid payment is typically made within 5 weeks of submitting the online records.
What donations are Exempt from Gift Aid Claims?
Gift Aid only applies to donations where there is no benefit to the donor. This means that you cannot claim Gift Aid on:
- Raffle tickets or participation in games at the school fete
- Payment for quizzes, clubs and other events
- Money spent on goods, such as takings from cake, plant or pre-loved clothes stalls
- Donations made by Limited Companies
You can claim it on:
- Donations for non-uniform days (if everyone can wear non-uniform, even if they don’t pay)
- Sponsored events
- Voluntary collections made at events
- Appeals for donations for a specific item, such as the ‘school minibus appeal’
Full details of what is and isn’t included are provided on the Government’s Gift Aid declarations page. Your plan of the PTA fundraising opportunities through the year will inform whether your PTA has sufficient qualifying activities to make the process worthwhile.
Gift Aid Declaration Form
Every eligible donor has to complete a Gift Aid Declaration Form. These detail their name and address and has a tick box to say that they are a UK taxpayer and are happy for the charity to Gift Aid their donation.
The Government provide downloadable templates that you can use including Multiple Donation Template which allows parents to sign once but covers donations through the year.
Whether online or printed, the completed forms have to be kept in a safe, secure location. It is important to keep these records for 6 years, so access to historic records should be passed down to relevant new members of the PTA.
Is Gift Aid Worth it for School Fundraising?
An additional 25p on every £1 can quickly add up, boosting potential earnings and getting the PTA closer to those fundraising targets.
It does take time to set up and organise, but after the initial process is complete, it is relatively simple to claim additional funds for years to come.
Whether this is worth the effort is dependent on several factors. Here are some points for consideration:
- Are the majority of parents likely to be working and earning above the personal tax allowance?
- Does the PTA run a sufficient number of qualifying fundraisers?
- Does the PTA have the resource to circulate, maintain and securely store Gift Aid Declarations and associated records?
If the answer is yes, then this is a great opportunity to raise more money for your efforts.
For other PTA fundraising projects, School Fundraising can assist. With decades of experience, we aim to make the process simple and effective!
