Moral Dilemma: Playing the Gift-Aid System
OP - August 03, 2012, 09:07 PM
A moral dilemma: In the UK, tax payers can select to "Gift Aid" donations to registered charities. This means that the charity can reclaim the basic rate tax from HM Revenue & Customs on its 'gross' equivalent. So for example, if you give £10 using Gift Aid the charity can reclaim an additional £2.50 to bring the total donation to £12.50. If you're not an income tax payer because, for example, you're unemployed or a student, you cannot select to "Gift Aid" your donations.
The question: is it morally okay to ask tax payers to make donations on your behalf and then give them the cash, thereby increasing the amount the charity receives as it enables them to reclaim the Gift Aid amount? I've done it several times for charities I think are important; what are your views?