When adding a gift, either via Records, in a Gift Batch or via Import, the Gift Aid Qualification Method, on the Tax tab of gifts, identifies how the gift should be treated for Gift Aid / Tax Claim purposes.
The Gift Aid Qualification Method is on the Tax tab of gifts and has 3 options.
- Apply Gift Aid Rules
This is the default option set by Raiser’s Edge and we advise that most, if not all gifts will stay with this option.
When the gift is saved Raiser’s Edge will check the information on the gift against the Gift Aid rules setup in Business Rules.
If the Gift Aid Rules means that tax cannot be claimed on the gift, then the Gift Aid Qualification Status will be set as Not Qualified.
- Set as Qualified
This option is used in the very rare circumstances where you wish to over-ride the Gift Aid Rules setup in Business rules and make an exception to say that a specific gift is Qualified for Gift Aid even though the rule would mean that it is disqualified.
For example, the Appeal on the gift relates to an Event that you are running and that appeal has been setup in Gift Aid Rules to disqualify gifts from being considered in a tax claim.
However, the donor has said that he does not intend attending the event and asked that you treat this as a donation.
- Set as Not Qualified
Again, this option is used in very rare circumstances where, based on the information on the gift it would be Qualified for Gift aid but you specifically want to set as Not Qualified.
For example, the donor has asked that you specifically do not claim tax on this donation. It may be that the donor has been out of work for some time and knows that not enough tax has been paid to cover the amount that would be claimed if the gift was included in a Tax Claim.
When importing gifts, the Gift Aid Qualification Method field (GiftAidQualificationMethod) would be imported as the number 1, 2 or 3, depending on which of the above options should be used. For example, if the gift being imported should have the Gift Aid Qualification method of “Apply Gift Aid Rules” then the field in the import file should be set as 1.
The method Set as Not Qualified would not be used unless there was a specific reason.
For example, it would not be used when adding Pledges and Recurring Gifts because, when payments are applied to these Gift Types, they inherit this information from the Pledge or Recurring Gift and typically you would want to claim tax on these payments.
Raiser’s Edge already knows that tax cannot be claimed on Pledges and Recurring Gifts and it does know that tax can potentially be claimed on their payments, therefore Pledges and Recurring Gift would be set as Apply Gift Aid rules, just like any other gift.
For those gifts where the Gift Aid Status is found to be Not Qualified for Gift Aid, click the Show Detail box which will show the reason the gift is not qualified.
Typically this is because of one of the Gift Aid Rules setup in Business Rules or the Time Limit for Claim has expired
There will also be a message on the Tax tab of the gift –
Gift is not eligible for tax claim.
Only gifts where the Gift Aid Status is Qualified for Gift Aid will then be checked against any declarations for the constituent to see if it is eligible for tax claim.
This requires an active declaration – where Pays Tax equals Yes and the gift date is between the Start and End Dates of the declaration.
If the gift date is either before the declaration start date or after the declaration end date then a message will show on the tax tab –
Gift is not eligible for tax claim.
If there is no declaration for the constituent but the Gift Aid Status is set as Qualified for Gift Aid then the message that shows is –
Gift is not eligible for tax claim. No valid declaration present.
This circumstance will also show the “potential tax claim amount”. This is the amount that could be claimed if a signed declaration is received from the constituent that covers the date of the gift, eg a retrospective declaration.
Finally, if there is a valid declaration and the Gift Aid Status is identified as Qualified for Gift Aid then the tax claim amount will show on the tax tab – this is the amount that can be claimed when the gift is included in a tax claim.
The Tax claim number field is also visible, initially set as blank to show the gift has yet to be included in a tax claim.
For more information read the Gift Aid section in the Regular Supporters Implementation Guide.