Blackbaud has processed over 2.6 million gift aid claims and the experience gained in that time is quite telling. Results show there is tremendous value in reviewing existing processes as well as getting ready from a knock on the door from HMRC.

The Government has made its commitment to freeze Gift Aid for the next three years - an announcement that was welcomed by the Institute of Fundraising. But, what are the day-to-day implications for organisations that run a Gift Aid scheme and are looking to safeguard the income from audits and penalties?

Many of us have been waiting on the outcome of the budget and wait to learn how the HMRC audit process will also be affected. But Gift Aid and its associated parts needs to be looked at very closely to ensure that those running schemes are maximising this income stream.

The facts on analysing the data gives rise to the opportunity that more can be made through a proper validation and indexing process. For example, over 24% of the documents reviewed during validation processes had to be discounted for a variety of reasons – not least of which the data could not be matched against an existing record. This may well mean supporter details are also being lost!

“We wanted to manage our Gift Aid claims in a more easy and effective manner; both in terms of recording Gift Aid circulation and managing the actual documentation itself. We are also able to make a claim in a much more timely way. We definitely have a much clearer picture of the donations we can and can’t claim Gift Aid on. And if we need to know at any point in time how many Gift Aid donations we have, we can do that.” "The Blackbaud Gift Aid auditing process has also allowed us to undertake a strategic approach with those who did not sign the declaration. As a result we have been able to plan specific communications that encourage commitment to this source of income." Laura Shobiye, Head of Business Support at GOSHCC

£14m is the conservatively estimated value of Gift Aid claims already made, that transpire to be erroneous. That is to say claims made have proved not to have the requisite integrity of audit trail that the legislation stipulates – but this is only the tip of the iceberg as the numbers only represent a small corner of the whole Gift Aid business.

In addition, the validation and audit process also identified over 4% of the documents that previously were not claimed against that indeed could be! This amount projected is a slightly more modest figure of £2.5million!

Both examples reflect a robust process that is utilised regardless of a potential audit. There is a distinct possibility that charities may be missing out on income and that Gift Aid should be looked at as part of the complete business process.

For more information about Blackbaud Gift Aid please follow this link.

Blackbaud are hosting several events in the middle of April and include speakers from HMRC and the Institute of Fundraising. If you’d like to see more details or register, please follow this link.

Gift Aid remains a protracted issue following the Chancellor’s budget this year with significant input by leading associations and representatives across the sector. A website that offers freedom of comment and input can be found at www.giftaidblog.com

Blackbaud Gift Aid is a solution that follows an automated and chronological process that enables charities to maximise and protect their Gift Aid claim. The solution was developed with advice from HMRC and is without compare in the sector that includes modules for Individual Donations and Sponsorship. It follows four key stages; current & historic form capture, identification of differences, remedial plans where appropriate and ongoing management to ensure claims are maintained and up to date.