What is the definition of a 'small donation' under section 2 of the Small Charitable Donations and Childcare Payments Act 2017?

Section 2 expands the definition of a 'small donation' beyond cash to include contactless payments made using a card, mobile telephone or other device at a contactless payment terminal. The gift must be made in the United Kingdom. This allows charities to claim Gift Aid Small Donations Scheme top-up payments on both cash and contactless donations without individual Gift Aid declarations.

Do contactless payments now qualify under the Gift Aid Small Donations Scheme in the United Kingdom?

Yes. Section 2 of the 2017 Act amends the Small Charitable Donations Act 2012 so that contactless payments made at a payment terminal using a debit card, credit card or mobile phone qualify as small donations. Charities can claim a top-up payment on these contactless donations without needing a Gift Aid declaration from each donor.

Does the donor anonymity condition apply to contactless donations under the amended small donations rules?

No. The condition relating to the donor's identity — broadly that the donor could not readily be identified — now applies only to cash gifts. It does not apply to contactless payments, since these are processed through a payment terminal and have a different character from anonymous cash donations collected in buckets or plates.

Where must a small donation be made to qualify under section 2 of the 2017 Act?

The gift must be made in the United Kingdom. Section 2 replaces the previous wording with a simpler and clearer geographical requirement. Whether the donation is made in cash or by contactless payment, it must take place within the United Kingdom to qualify as a small donation under the Gift Aid Small Donations Scheme.

Small Charitable Donations and Childcare Payments Act 2017 section 2

Meaning of "small donation"

Section 2 expands the definition of a "small donation" under the Small Charitable Donations Act 2012 to include contactless payments alongside cash, and clarifies the conditions that apply.

The definition of a small donation is extended beyond cash to also include contactless payments made using a card, mobile telephone or other device at a contactless payment terminal.
Gifts no longer need to be made in cash to qualify — they can be made either in cash or by contactless payment.
The gift must be made in the United Kingdom.
The requirement relating to the donor's identity (the condition in the original legislation about cash gifts) now applies only where the gift is made in cash.

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