How do I get this script to work? It is meant to remove the GUI and give a tool.

Local Scripts can't access ServerStorage and Scripts can't use LocalPlayer nor PlayerGui. Use a Local script and put the torch in ReplicatedStorage.

--Local Script
local StarterGui = game:GetService('StarterGui')


local Player = game.Players.LocalPlayer

function onClicked()
    while wait() do

        local found = Player.PlayerGui:FindFirstChild("Tool")
            if found then

            else
            wait(.1)            

            local clone = game.ReplicatedStorage.Torch:clone()-- Move item to RS
            game.ServerStorage.Torch.Parent = Player.Backpack
        end
    script.Parent.Parent.Parent:Destroy()

    end 
end

script.Parent.MouseButton1Down:connect(onClicked)

Good Luck

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