This is known as the community building rule – a niche but powerful opportunity for charities delivering services across multiple venues.

Who Can Use the Community Building Rule?

This rule applies to UK charities only – Community Amateur Sports Clubs (CASCs) can use the standard GASDS allowance (up to £8,000 of donations per year) but are unable to increase that allowance by using the community building rule

What Is the Community Building Rule?

Under GASDS, most charities can claim a 25% top-up on small donations of £30 or less, up to £8,000 in donations per tax year – giving a maximum top-up of £2,000.

The community building rule allows eligible charities to claim the same £8,000 donations allowance per building where they run qualifying charitable activities. That means a charity working across multiple locations could significantly increase its GASDS claim – provided the activities and venues meet the criteria.

What Counts as a Community Building?

To qualify under this rule, a “community building” must be:

• A public venue where the charity carries out charitable activities directly (not just admin or fundraising)
• Hosting group-based, charitable services (e.g. advice sessions, youth work, community classes)
• Attended by at least 10 members of the public, regularly

For example

• Local libraries where you run literacy support sessions
• Village halls used for drop-in youth groups or social care support
• Community centres hosting weekly skills workshops or wellbeing programmes

Scaling Up Your Claim

Imagine your charity delivers weekly community support sessions in four different libraries. Each site collects around £7,000 per year in small, anonymous donations during those sessions.

Under the community building rule, you could claim:

• £7,000 (eligible small donations) × 4 buildings = £28,000 total donations
• 25% top-up on £28,000 = £7,000 reclaimed from HMRC

Without the community building rule, the standard GASDS cap would limit your top-up to just £2,000 (based on a £8,000 allowance).  This example demonstrates how delivering services in eligible venues can unlock an additional £5,000 in funding – without collecting any donor details.

Do You Need a Minimum Number of Buildings?

No. The rules were relaxed in April 2017, there is no longer a requirement to operate in three or more venues.

You can use the community building rule even if you only have one or two buildings, as long as:

• The activity qualifies (see above)
• Each building meets the criteria
• Your charity meets the usual GASDS conditions

Important Reminders

• GASDS only applies to small donations (£30 or less) in cash or contactless form
• Donations must be anonymous and unconditional
• You must keep reasonable records of where and when donations were collected
• HMRC may ask for evidence of activity and attendance at each site

And remember – HMRC is unlikely to pay out claims under £100, so it’s often worth waiting until your eligible donations accumulate.

Final Thoughts

The community building rule is often overlooked, but for charities delivering public services in more than one location, it could significantly increase your Gift Aid top-up.

If your charity already works in eligible venues, it’s worth reviewing your records – you may be entitled to reclaim more than you thought. And if you’re planning future outreach or delivery models, this rule could make a financial difference.