A Regular Gift is a donation of a set amount at regular intervals for example weekly, monthly or annually. Knowing that you have a regular source of income means that charities can plan and put new projects into place as the need arises. Even a small donation on a regular basis can make a big difference in helping you plan for the future.
There are four key ways to set up a Regular Gift:
- Direct debit – this is an arrangement in which someone gives an organisation permission to transfer money from their bank account on a particular day each month. It is how lots of bills are paid. You can set up direct debits using an online service like GoCardless or Golden Giving. If your group has a website, you can provide a link for people to set up the direct debit online.
- Standing orders – this is when someone asks their own bank to make a regular payment. You just need to give supporters your group’s bank details (account name, number and sort code) so that they can ask their bank to set it up. Ask them to tell you that they have done this, so you know where the money has come from when it appears in your bank account.
- Payroll Giving – this enables employees to give to any UK charity straight from their gross salary (before tax is deducted), giving immediate tax relief on those donations. This means that £1 donated each month costs only 80p for employees paying standard rate tax (60p for higher rate taxpayers). For more information, see Payroll Giving.
- Regular text donations – some online fundraising sites, such as Donr, allow people to make regular donations to your charity or cause by text.
You may find these tools useful:
- CAF Online’s Standing orders Vs DirectDebits
- NCVO Knowhow’s How to maximise regular donations for small charities
Subscribers to a regular scheme for a charity usually receive some benefits in return for their subscription. If the value of the benefit does not exceed certain limits the donation will still qualify for Gift Aid. If the benefit value exceeds these limits the donation will not qualify for Gift Aid. For more information, see Gift Aid benefit rules.
If you would like further advice on how to set up your regular giving scheme, please book on one of our free support sessions.