Fit and proper persons test

The fit and proper persons test is easy to overlook, but it underpins your charity’s tax reliefs. HMRC will only treat an organisation as a charity for tax if it is confident the people running its money are suitable — a safeguard against charities being misused for tax fraud or avoidance.

A charity must satisfy HMRC that its managers are ‘fit and proper persons’ to qualify for charity tax reliefs, including Gift Aid. (Source: GOV.UK, HMRC guidance on the fit and proper persons test, accessed 9 July 2026.) ‘Managers’ means those in general control of the charity — usually the trustees and senior finance staff. HMRC expects reasonable checks and a signed declaration from each.

Keep a fit-and-proper declaration on file for every manager, and act on any red flags. If you did not know and took reasonable steps, a manager’s unsuitability need not cost you your reliefs. See the Gift Aid Handbook.