One in five charities find claiming Gift Aid “difficult” or “very difficult”, new research has found.

The Charity Finance Group’s report Breaking Down The Barriers, which is based on research conducted with 100 charity leaders this summer, found 40 per cent of charities would like the rules relating to Gift Aid to be clearer and easier to understand.

But although 20 per cent of charities said they found claiming Gift Aid difficult or very difficult, more than half – 55 per cent – said they found it easy or very easy.

Researchers found that seven in 10 respondents would like to see more done to raise awareness of Gift Aid among the general public.

Two-thirds of charities said they were aware of either “a lot” or “some” support available to them when registering for and making Gift Aid claims, while 16 per cent said there was not enough help.

More than half the charities included in the survey (52 per cent) said the adoption of better processes would help them to claim Gift Aid more easily, as would better co-ordination across the nation.

The same percentage of charities said they would support the idea of a government-backed public awareness campaign for Gift Aid.

The findings have been published to coincide with Gift Aid Awareness Day as organisations try to raise awareness of the scheme.

Almost half of the sample (47 per cent) said their charity had not claimed through the Gift Aid Small Donations Scheme, which allows charities to claim a Gift Aid-like payment on small cash donations of up to £8,000 a year, and 11 per cent had no knowledge of the scheme.

The Civil Society Group, a coalition of nearly 90 charity bodies, sent a letter to the Chancellor, Rachel Reeves, last month calling for the government to increase charity tax breaks in line with inflation and adjusting the GASDS was among the proposed changes.

Almost 50 per cent of charities said they were aware of support available regarding Gift Aid and 15 per cent said there was not enough support or it wasn’t easy to find

Dionne Sturdy-Clow, Gift Aid project officer at the CFG, said: “Maximising income is even more vital in 2024, with the cost-of-living crisis continuing to impact charities. 

“Many are seeing their income reduce while demand on their services is increasing.

“By ticking the box and applying Gift Aid to donations, donors are making a tangible difference in the lives of countless people. And it doesn’t cost them a penny extra – it’s money from the government.

“CFG’s Gift Aid Awareness Day campaign is one among several that aims to help close the £560m Gift Aid gap. 

“We look forward to continuing our work with our partners and members to ensure charities can maximise Gift Aid and increase their impact for the people and communities they work with."