Give a gift that keeps on giving

How your donations can support people in need Like everyone, when I turn on the news or read the headlines, I am shocked and saddened by the events in Ukraine.

In just a few short weeks, these people’s lives – which are not too dissimilar to our own – have been completely turned upside down.

At the same time, charities are still slowly recovering from the effects of the pandemic from both sides – donations have reduced as people tightened their spending and the number of people in need has increased as more of us fall on hard times and struggle to recover – and rising energy prices are making life even more difficult.

If you rarely or never give to charity, it can seem an odd thing to consider.

“Charity begins at home” is a response I often hear when I discuss this, but helping others can be a rewarding act, whether you donate your time – as so many have in the last year – or your money. I think we should all do what we can.

And when you make a donation to a charity, there are financial benefits for you too.

Many donations to charities include the option of Gift Aid so effectively, for every £1 you give, it can claim the basic rate of income tax on your donation, making it worth an extra 25%.

If you’ve ever donated via text message, you may recall receiving the “opt-in to Gift Aid” replies.

If you are a higher or additional rate taxpayer, you should claim the higher or additional rate of income tax via your self-assessment, or by asking HMRC to amend your tax code.

This means you can claim further tax relief if you pay more tax.

It is important to note because if the charity is receiving tax relief on

Whether you can help by offering time or money, we should do all we can

your donation, you must have paid tax to the level you are claiming for it to be allowable. Some employers even run a Payroll Giving scheme, which means your charity donations come straight out of your gross income, saving you tax immediately with no claim required.

For some, the thought of making a monthly donation is impossible, but there are many other ways you can help a charity.

You can leave money to a registered charity in your will, and any payment will be made free of inheritance tax.

This donation can also reduce inheritance tax. For example, if you gift 10% or more of your estate to a charity, the rate of inheritance tax chargeable on your estate is reduced from 40% to 36%.

This is particularly beneficial if you would like to give to a charity but are unable to afford monthly donations, or if your estate is subject to inheritance tax.

As Winston Churchill once said: “We make a living by what we get, but we make a life by what we give.”

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