Why it’s a piece of cake raising cash for charity
From Gift Aid to baking and donating blood, our guide to helping good causes
CHARITIES need our support – and there are plenty of ways to give help without breaking into a piggy bank or even dipping your hand in a pocket. Here, The Mail on Sunday explores the options.
TICK GIFT AID BOX
YOU can give extra money at no additional cost by ticking a Gift Aid box when making a donation to charity.
By putting a tick on a form you are giving the charity permission to reclaim the 20 per cent basic rate income tax you will have already paid on the money from Revenue & Customs.
It means a £10 donation you make is effectively topped up to £12.50 because of the taxman’s refund, which goes straight into the charity coffers.
Higher earners who pay 40 per cent income tax can also claim the difference between the higher rate and the basic rate of tax through their self-assessment tax return – a further 20 per cent – on the total value of their donation. They can hand over this extra refund to the charity at no additional cost.
Unfortunately, this tax refund to charity is not automatically paid and you are required to make a Gift Aid declaration for it to be done. As part of the reclaim paperwork for the taxman, the charity will ask you to complete a simple form that includes providing your name and address, and you simply tick a box saying you would like the charity to reclaim the tax.
LEAVE A LEGACY
SEVEN out of ten people die without a will – the main reason for this is most people are put off contemplating their own death.
By planning ahead, you not only ensure your estate is carved up to family and friends just as you would have liked, but you also avoid paying too much inheritance tax on assets. An estimated £50million is handed over to the taxman every year that with planning could have been bequeathed to a charity.
If you leave at least 10 per cent of an estate to charity in a will you can also pay a reduced rate of inheritance tax. Without giving to charity you are taxed at 40 per cent on any estate worth more than £325,000 – but this falls to 36 per cent for those giving 10 per cent of an estate to charity.
Retired insurance broker Michael Freeman, 67, and his wife Debra, 61, do not have any dependants and have decided to leave everything to the Isabel Hospice in Welwyn Garden City, Hertfordshire, when they die.
Michael says: ‘This is a local charity where all the money goes on the care of patients – it is not one of those huge outfits that wastes money on unnecessary self-promotion.
‘It is wonderful that we have the opportunity to give something back in our wills – being able to support special people who provide such valuable help is a privilege. Hospices are vital to local communities.’
You do not have to be a rich philanthropist to help charities – a small donation on top of money left to family and friends can still make a huge difference.
According to research by Co-op Legal Services, one in 16 leave to charity in their will, with the average amount donated just over £1,000.
The cost of having a will professionally drawn up to include charities you would like to benefit on your death is usually about £250 – for couples about £400.
Although it may take only an hour to complete, put aside time to reflect on your final wishes beforehand – how you want the estate divided up and executors to handle the paperwork on your death.
You might be tempted to draw up a will using a £20 do-it-yourself kit, but though these may seem a bargain, it makes sense to pay a professional to be certain your will is filled in correctly and covers all eventualities. Details of local solicitors can be found through the website lawsociety.org.uk.
VISIT A CHARITY SHOP
THERE are more than 10,000 charity shops dotted around Britain’s high streets, the vast majority of which are manned by unpaid volunteers.
If you have time to spare, the help you provide can be invaluable – but if not, you might still be able to assist by donating items to sell in the shop.
This not only allows unloved items to be recycled rather than thrown away, but they can be turned into money for the charity when they are sold.
Donations to charity shops can also be covered by the Gift Aid scheme. In many cases once you have filled in a form in store, all you need to do is give your name and postcode each time you make a donation, and the charity can claim an income tax refund based on the price of goods sold.
Though charity shops welcome all manner of goods – from books to bridal dresses – condition is key for them to be worth anything.
It is important not to simply turn up in the middle of the night and dump a pile of bags full of junk on the doorstep. Rather than helping a good cause, anyone doing this creates a headache for volunteers, who have to go through and often throw away what might be piles of rubbish.
Visit the charity’s website and find
the nearest outlet and opening hours. You can visit in person to ask what sort of things it might want.
In some cases a charity may be able to pick up big items – including furniture such as tables and wardrobes – which can help you declutter while supporting others. Trading websites such as charity The Freecycle Network enable customers to find others who want items you might otherwise throw out – offering benefits that cost you nothing.
Then, of course, there is the option to do a spot of shopping at a charity shop, stocking up on CDs, games and vinyl records at bargain prices – and doing some good with the money that you spend.
GIVE FROM SALARY
THE benefit of giving to good causes directly out of your pay packet means that you do not even notice it going out – and the money disappears before tax.
If you are signed up to a receive your salary under a Pay As You Earn scheme you can donate to charities through payroll giving – also known as Give As You Earn.
Simply tell your employer that you would like to help charities through this route and hopefully the firm will then arrange for the money to go directly to the charity from your gross pay. It means a basic-rate taxpayer donating £10 need hand over only £8 – a further £2 is given to the charity from your gross pay that would otherwise vanish as tax.
If your employer does not offer payroll giving, why not ask if they could set it up? If you have a particularly generous boss, you could also suggest they match the donation – for local good causes it can create positive publicity that is far better than if the money was spent on an advertising campaign.
Charities also benefit from payroll giving as it provides a regular income that helps them plan ahead.
DONATE BLOOD
GIVING blood can be a lifesaver – and it costs nothing but goodwill and a few minutes of your time. The average person has eight pints of blood pumping around their body. Blood donors give just under a pint – 470ml – each time they donate.
It might seem a lot to give away – and as the comedian Tony Hancock noted, “A pint? Why, that’s very nearly an armful” – but the body is soon able to replenish this. Experts believe it can do the body good to have freshly produced blood pumping around.
Steph Ransome, 25, from Wandsworth, South-West London, has been giving blood since she was 17. The criminal justice officer says: ‘My 88-year-old grandmother Molly almost died when giving birth as she lost a lot of blood. It was only thanks to a blood transfusion she survived. Without this my father would not have been born and neither would I. It is a privilege being able to give blood to help others.’
Though the usual minimum gap for giving blood is every four months for a woman (three for men), Steph is part of a trial to see how female donors cope with donating every three months.
She just pops into a local clinic which she finds through the NHS blood and transplant website blood.co.uk or using a Give Blood smartphone app. Steph says: ‘People are put off by the thought of needles but if you look away you feel nothing. It takes five minutes to take the blood – you then rest for a further ten minutes and get free drinks, biscuits and crisps before you get on with your usual day.’ She has also signed up to be a bone marrow donor as well as being a registered organ donor – allowing doctors to take her organs such as kidneys, liver and heart – when she dies so that they can give someone else new life. Steph points out that it is important not only to register but to also ensure family and friends know of your organ donor wishes on death and to always carry the organ donor card. She also has a blood donor card with details of her blood group. For details on giving blood or being an organ donor visit the NHS Blood and Transplant website.