How it works
Donations made through this scheme use a Direct Debit. This can be made on a monthly, quarterly or annual basis. Each donation is restricted to a parish church chosen by the donor and cannot be used elsewhere. The donation will be passed back to the parish of the donor's choosing by 10th of the month. Any eligible Gift Aid will be sent separately, once it has been received from HMRC.
Another unique feature of the scheme is the option for the donor to commit in principle to increase their gift annually in line with inflation. This is entirely at the donor’s discretion on an opt-in basis but more than 55% of the cash received is index-linked.
This modern, tax efficient way of managing giving to your church:
The church benefits by:
- Stable and often increased planned giving – by launching PGS alongside a Giving Review.
- Efficient and regular reclaim of Gift Aid - improving cash flow.
- Protection against static giving – by offering givers to index link their gift.
The treasurer benefits by:
- Reduced administration and paperwork.
- Access to monthly and annual (both tax and calendar year) statements.
- Saves time for them and people who count the money.
The individual benefits by:
- Being in total control of how much they give.
- Using a simple giving method that means regular financial support to their church.
- The option to increase giving annually to protect their gift against inflation.
- The Direct Debit Guarantee Scheme protects the gifts.
It's easy to set up and manage. All the PCC needs to do is pass a resolution to start the Scheme and show leadership by joining and encouraging others to join. The diocese covers the administrative cost so it is free to churches and the Parish Giving Scheme - does all the work.
How is Gift Aid claimed?
The donation is claimed through the Parish Giving Scheme and will be passed back to your Parish by 10th of the month. Any eligible Gift Aid will be sent separately once PGS has received it from HMRC (usually 5 – 8 working days after). PGS is a separate charity and therefore the Gift Aid declaration is made to and held by the charity. If HMRC audit your church, they will audit PGS for all its PGS donations to your church. However you will still have to claim Gift Aid for any other donations received directly by your Parish.
If one of your donors becomes eligible to claim Gift Aid after starting their donation through the Parish Giving Scheme they will need to complete a PGS Gift Aid Declaration.
A range of printed resources has been created specifically to help parishes introduce this new method of giving. They include: donor gift forms, tokens and folders. To request resources, or to seek advice on how to implement the scheme in your parish, please contact your Diocesan Advisor. A list of Diocesan Advisors can be found here