Just over half of donors say they always use Gift Aid on donations but concerns remain it is too complicated and in need of modernisation, a survey has revealed.

The survey by Charities Aid Foundation (CAF) found that 51% of donors always use Gift Aid.

However, a quarter say they only sometimes use it on their donations.

Almost half (46%) of those who only sometimes use Gift Aid say it is not always an option.

A quarter say they cannot give it when they donate with cash. The same proportion say they don’t always remember to use it.

More than one in ten claim it is “too much effort”.

The survey’s findings suggest more needs to be done to encourage donors to always use Gift Aid and to make the system less complicated, according to CAF.

It says that currently the process for claiming Gift Aid “is complicated for charities and donors given the variety of ways people donate – including in cash, via text or donating goods”.

According to the Charity Finance Group £560m of Gift Aid relief goes unclaimed each year.

“Gift Aid is extremely valuable to donors and the charities they want to support and it’s clear the public recognise this,” said CAF managing director Mark Greer.

“But we know it is underused by donors and can be complicated for charities to claim. When an eligible taxpayer donates and forgets to tick the box, the charity misses out.

“Charities are under pressure with demand for their services continuing to increase.”

He added that “modernising the system to automate Gift Aid would be a vital step forward at a time when we need to boost charitable giving across the UK”.

The figures have been revealed ahead of Gift Aid Awareness Day, which takes place on 3 October.

CAF also found widespread support among the public for Gift Aid as a way of boosting charities’ income via donations.

Four in five think people should be encouraged to donate with Gift Aid, which is an option for UK tax payers to claim an additional 25% of the value of the donation. This would mean a charity can receive £12.50 for every £10 donation.

More than three quarters say Gift Aid is important as charities rely on it.

Currently it is worth £1.6bn to more than 66,000 UK charities, according to HMRC.

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