Recent findings from our poll revealed that 67% of fundraisers believe most donors don’t fully understand Gift Aid. That’s a significant barrier to unlocking additional funding for charities.
So, why is there a lack of understanding, and how can charities address it to boost opt-in rates?
Identify the Key Barriers to Gift Aid Opt-In
Many donors skip the Gift Aid checkbox, with 25% stating it’s ‘too much effort’. When in reality ‘too much effort’ translates to:
- Lack of awareness – Some donors don’t know what Gift Aid is or how it works.
- Confusion over eligibility – Donors may be unsure if they qualify or worry about tax implications.
- Perceived complexity – The wording of Gift Aid declarations can be intimidating, discouraging opt-ins.
- Distrust in data handling – Donors might be reluctant to provide personal details without clarity on how their information is used.
Why Donors Find Gift Aid Confusing
For many donors, Gift Aid can seem complicated. Here’s why:
Unclear eligibility criteria
Donors may not understand how Gift Aid claiming works or their role in it. Some worry they might get charged extra or their tax status might be affected.
Complex wording
Some Gift Aid declarations contain off-putting legal jargon.
Lack of immediate impact
Unlike the donation amount, the extra 25% added by Gift Aid isn’t something donors see in real-time, making it feel like an abstract benefit.
Confusion about multiple donations
If someone donates often or to multiple charities, they may not understand how Gift Aid will work with this.
Unfamiliarity with tax refunds
Some donors don’t realise that Gift Aid doesn’t cost them extra and may mistakenly think it’s an additional financial commitment.
Understanding these points of confusion helps charities address them proactively and provide transparent, more engaging explanations.
Simplify the Message
The way Gift Aid is communicated can make or break opt-in rates. Instead of legalistic jargon, charities should use clear, donor-friendly language:
Adding Gift Aid increases your donation amount from £50.00 to £62.50 at no extra cost to you!
A/B testing different messages on donation pages and checkout processes can help determine which wording drives the highest opt-in rates.
Optimise the Donation Journey
A frictionless user experience can increase Gift Aid uptake. Charities should:
- Provide links for more information, tooltips or pop-ups that explain Gift Aid in simple terms.
- Use visuals and infographics to illustrate how much extra income Gift Aid generates over time to see the real-time impact.
- Streamline forms to avoid unnecessary fields that could deter donors from completing the process.
Communicate the impact
Donors may not understand how vital Gift Aid is for a charity.
Consider adding impact reporting to your thank you emails, follow-ups, and newsletter to demonstrate how much Gift Aid has been earned during a set period and how it has helped.
When running campaigns or asking for appeals, clearly state the benefit of adding Gift Aid. For example, we could reach our goal 30% faster if every eligible person added Gift Aid.
Segment donors without a gift aid declaration and send personalised communications about the impact of their gift and how much further it could go.
The Bottom Line
Gift Aid is a £600 million opportunity that UK charities risk missing out on due to donor misunderstanding. By understanding the roadblocks, simplifying communication, and optimising digital experiences, charities can significantly increase Gift Aid opt-in rates—and ultimately, their fundraising income.
Using hapi and hapiLite, we help charities implement smart digital solutions that drive better Gift Aid uptake, with an average 90% opt-in rate in 2024. If you want to maximise your Gift Aid revenue, we’d love to help.
📩 Let’s chat about how we can make Gift Aid work harder for your charity.
Looking for a more flexible, cost-effective fundraising platform?
Check out hapi and hapiLite to streamline your digital fundraising and automate key processes.
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