Can a CIC claim Gift Aid on donations?
A CIC cannot claim Gift Aid simply because it has a community purpose. CICs are not charities, and Gift Aid is available to eligible charities and Community Amateur Sports Clubs under the relevant conditions. Receiving a donation does not automatically make it tax free.
These answers provide general information, not advice tailored to your circumstances. Rules can change and exceptions may apply — speak to the CASS team before making a tax, accounting or financial decision.
Last updated 3 October 2026
Community purpose is not eligibility
A Community Interest Company has a social purpose and an asset lock, but that does not give it charitable status. The distinction matters when explaining donations to supporters.
Keep the recipient clear
If a separate eligible charity is involved, any Gift Aid claim must relate to a qualifying donation to that organisation. Its eligibility does not automatically extend to the CIC.
Check the income treatment
A payment described as a donation still needs assessment for the CIC’s accounts and tax position. Whether anything is provided in return can also affect the analysis.
Avoid promising relief
Check fundraising wording before inviting donations. CASS can review the accounting questions and identify when specialist charity or tax advice is needed.
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