New technology to process Gift Aid claims on shop donations

Eight charities are to install a new system to manage Gift Aid claims on items donated to their shops.

The new software, from technology firm Merlin, is a development of a similar system by E-Productive that was launched after being piloted by Sue Ryder shops in 2006.

The charities that will use the new system have not yet been named. The system was launched after a successful pilot scheme in selected shops run by Oxfam and Big C, the cancer research and support charity for Norfolk and Waveney.

To claim Gift Aid on donated items, charities must contact the donor once the donated item has been sold to obtain permission to claim tax relief on the sale price.

Merlin claims that its system is quicker than other alternatives because donated items are given barcodes, which means that it is not necessary to enter information manually.

When an item is sold, a letter to the donor is triggered asking for permission for the charity to claim tax relief on the item. Donors have 21 days to respond.

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