Making generosity go further in a cost-of-living crisis

In 2025, Gift Aid contributed £1.7 billion to charities. 

For Yorkshire Cancer Research, the Government scheme is one of the most effective and immediate ways we can increase funds for life-saving research and services without asking supporters to give more.

It represents one of the clearest opportunities we have to maximise the impact of the public’s generosity, particularly at a time when many people are balancing their desire to support good causes with rising living costs. 

The latest UK Giving Report from the Charities Aid Foundation states that 9 in ten donors are familiar with Gift Aid. 

However, while most are using it at least sometimes, only half are using it for every donation.

And despite its potential, an estimated £560 million is left unclaimed each year.

Through the Gift Aid scheme, charities can claim an extra 25p for every £1 donated or on the value of donated goods, at no extra cost to the supporter. 

At Yorkshire Cancer Research, we’ve been looking closely at how we can make the most of that opportunity, and the results over the past year have been striking. 

In 2025, our total Gift Aid income reached £387k, up from £258k in 2024. That’s an increase of £129k, or 50% year-on-year. 

For a single income stream to grow at this rate in the current climate is significant, and it highlights the scale of what can be achieved when Gift Aid is treated as a strategic priority.

What’s particularly interesting is where that growth has come from.

Traditionally, Gift Aid income has been heavily weighted towards fundraising activity, including donations and events. That remains a core part of the charity’s funds. In 2025, Gift Aid from fundraising increased by 22% compared to 2024.

But the most significant change has come from a different direction.

Gift Aid linked to our retail activity has grown by 143% in a single year, rising to £146k. As a result, retail now accounts for 38% of our Gift Aid income, compared to 23% the previous year.

From a finance perspective, this demonstrates how we can use Gift Aid to unlock value from other forms of support. Donated goods, when paired with Gift Aid, become an even more powerful and scalable income stream.

When people think about supporting a charity, they often think first about donations or fundraising. But some of the most powerful support we see every day happens in a different way, on local high streets, in our shops, and through the act of giving items a second life.

Over the past year, this has become an increasingly important part of how we fund cancer research in Yorkshire.

As our retail network continues to grow, each new shop means more opportunities for people to get involved in a way that suits them.

Some supporters donate bags of clothes or household items. Others pop in regularly to shop. Many do both. These may be small, everyday actions, but together they make a huge difference.

Donating pre-loved items reflects how people want to support charities today. Not everyone is in a position to give financially, but many are willing to donate goods, shop sustainably or support a local high street presence. Our role is to ensure that when they do, we make the most of that support.

Gift Aid plays a central role in that. When applied consistently and accurately, it increases the return from each donated item we sell. It’s a simple step, but it has a big impact when hundreds or thousands of people take part. Over time, those incremental gains add up to something much more substantial, as our results this year demonstrate.

From a financial management perspective, success in Gift Aid comes down to a few key principles: making it easy for supporters to opt in, maintaining robust systems and processes, and ensuring that claims are accurate and timely. Just as importantly, it requires a joined-up approach across teams, from retail and fundraising through to finance.

Looking ahead, the opportunity is clear. There is still significant untapped potential in Gift Aid, both across the sector and within our own operations. As we continue to grow our retail footprint and refine our processes, we expect this income stream to play an increasingly important role in supporting our work.

Ultimately, Gift Aid only works with strong stewardship. It means ensuring that every contribution, whether a donation or a bag of goods, delivers as much value as possible.

And when combined across thousands of individual actions, it becomes a powerful driver of progress in cancer research across Yorkshire.