The Gift Aid Small Donations Scheme could raise almost £150m a year for the charity sector by 2018, figures published in the Autumn Statement say.
The GASDS, which will allow charities to claim a Gift Aid-like relief on up to £5,000 of cash donations a year without individual paperwork, is being introduced through the Small Charitable Donations Bill, which was sent to the House of Lords last week.
The government had estimated that it would raise £115m a year for the charity sector by 2016/17. But the government has since agreed to soften restrictions on the scheme.
Figures published by the Treasury as part of today’s Autumn Statement say the scheme is expected to cost the government an extra £10m in 2013/14, rising to an additional £30m by 2017/18.
The softened criteria include requiring that charities wishing to claim under the scheme must have made successful Gift Aid declarations in two out of the previous four tax years, rather than three out of the previous seven, as was initially required.
And charities must have claimed £1 in Gift Aid for every £10 they want to claim under the GASDS, rather than £5 for every £10, as originally required.