Charity donors in Wales fail to claim tax relief

NEARLY two-thirds of charity givers in Wales fail to claim tax relief on their donations, research has shown.

As a result, charities are missing out on huge extra sums.

Across the UK, it has been estimated that the shortfall in charity revenue amounts to almost £1bn per year.

Taxpayers who donate to charities can increase the amount received by the good causes they favour by passing on the tax relief they are entitled to under the Gift Aid scheme.

At a time when 60% of charities have reported a loss of income during the pandemic, additional revenue from topped-up tax relief donations could be vital.

Mark Collins, head of tax at Handelsbanken Wealth Management & Asset Management, said: “Charity donors will want to see the organisations they support receiving the full benefit of donations, which should include claiming the tax relief whether it is through Gift Aid or consulting a financial planner.”

The research highlights the importance of getting advice on making charitable giving more tax-efficient for both good causes and donors themselves.

Just 59% of adults are aware they can claim personal tax relief on any charitable donations they make.

It shows people willing to be very generous in their backing of good causes – 22% are definitely planning on leaving money to charities in their will, with an average donation of more than £2,200 planned, adding up to a potential pay-out for charities of £26.5bn.

Across the UK, more than two out of three adults (68%) donate to charities every year – the equivalent of around 35.9 million people.

The average donation is £499, equating to a total of £17.9bn donated every year overall – or £563.62 every minute.

Young people aged between 18 and 34 donate more than twice the average (£1,056) while older people (55 and over) donate a quarter of that (£250).