When a text donation is made to a charity, either the intermediary (also called Aggregator) acting on behalf of the charity or the charity itself seeks a Gift Aid Declaration (GAD) from the donor. The Gift Aid Declaration is usually performed on a web site geared towards mobile device consumption (micro site) and is valid if the donor is an income tax or capital gains tax payer and will pay enough tax in that tax year to cover the Gift Aid being claimed by the charity.
The Gift Aid claimed by the charity represents 25% of the donation. With an estimated 26% of the population paying enough tax and £150m text donations per annum, Gift Aid is worth an additional £7.9m.
Reporting anomalies between Intermediaries and Mobile Operators can mean that some Gift Aid claims cannot be made resulting in a potential loss of taxation based income.
A process has been developed by aimm in conjunction with Mobile Operators and HMRC to ensure that Gift Aid claims can be made with surety and that audit trails comply with HMRC’s requirements.