Many people turn their thoughts to charity in the run-up to Christmas, but
making generous donations can be difficult at a time when budgets are
already stretched. For cash-strapped charitable types, we suggest ten ways
to be good without damaging your festive finances.
1 Maximise what you already give
Charities are estimated to be losing up to £700 million a year in unclaimed
Gift Aid, says the Charities Aid Foundation. Gift Aid allows charities to
reclaim the tax you have already paid on money you donate and can increase
the value of your gift by up to 28p on every pound.
All basic-rate taxpayers have to do is complete a declaration saying that they
pay enough tax to cover what the charity will reclaim from Revenue &
Customs. Higher-rate taxpayers can also claim back the difference between
basic and higher-rate tax on their self-assessment tax returns.
2 Donate penny shares
Donating nuisance small holdings is an excellent way to tidy your portfolio
and help charities without incurring any dealing costs. ShareGift (www.sharegift.org)
collects shares, reregisters them in its name and pools together the shares
until there are enough to sell through a commission-free arrangement with
Killik & Co, the stockbroker. ShareGift then uses the sale proceeds to
make donations to a range of UK charities. All shareholders need to do is
send in their share certificates and sign a transfer form.
3 Remember a charity in your will
By including a donation to a charity in your will, others will benefit and the
amount that you donate will be deducted from your estate for inheritance tax
purposes. The campaign website www.rememberacharity.org.uk
is full of useful advice, as is the Charities Aid Foundation, at www.caf.org.uk.
4 Give as you earn
Regular and predictable giving is the holy grail for charities, so check
whether your employer offers a payroll giving scheme, such as Give as You
Earn. Donations made through these schemes are taken from your salary at
source, before it is taxed. This means that a donation of £10 a month
effectively costs a lower-rate taxpayer £7.80. For higher-rate taxpayers
that same £10 donation would cost only £6.
5 Run a mile
Many charities rely on large fundraising events, such as the Flora London
Marathon and the BUPA Great North Run to keep them going. By signing up to
run for charity, you can help a good cause for nothing and save yourself the
trouble of renewing that underused and expensive gym membership. As a
fundraiser you will be expected to pull in a minimum amount to earn your
place, but charities offer plenty of support and advice to help you to reach
your target.
6 Phone it in
Recycle your old mobile phone for charity. Fonebak, the recycling company,
will donate £5 to the housing and homelessness charity Shelter for each
handset it receives. Call Shelter’s supporter helpdesk on 0845 4584590 or
e-mail info@shelter.org. uk to ask for a specially designed free-post
envelope for your old handset.
For those thinking of switching networks or upgrading their phone, Shelter has
an arrangement with Connect 4 Charity to offer some of the latest phones
from Samsung, Nokia and LG and accompanying tariffs. When you sign up, the
charity receives a donation that could be worth more than £200. Go to www.shelter.org.uk
to find out more.
7 Charity gifts
One way to spend no more than you would normally and still feel better about
yourself is by making charity gifts. The Save the Children Wishlist (www.savethechildren.org.uk)
allows you to buy gifts such as a fun trip for a disadvantaged child in the
UK for £15, or enough Plumpy’nut, a high-protein, high-energy peanut butter,
to feed a severely malnourished child for a month for £26.
Another possibility is Oxfam Unwrapped (www.oxfam.org.uk).
Among other things, you can help local communities in Tanzania or India by
buying a goat for £25 or fishing nets for £20.
8 Give blood
Historically, blood supplies dip over the festive period. “Either people are
busy with friends and family or waylaid by seasonal colds,” says Ruth
Greenaway, of the National Blood Service. Giving blood is straightforward
and one donation from you could save someone’s life this Christmas. Go to www.giveblood.org.uk
or call 0845 7711711 to book an appointment.
9 Spring clean early
Charity shops are crying out not just for clothes, but also books,
kitchenware, glassware, crockery, ornaments, DVDs, CDs, toys and electrical
goods. By clearing out all your unloved knickknacks and impulse purchases
you can boost a valuable source of income for charities. Cancer Research UK
has more than 600 shops across the UK. Visit your local stores to hand over
your unwanted items or ask if it is able to make a collection.
10 Time is money
One of the most valuable cash-free ways to give to charity is by donating your
time. At www.do-it.org.uk you can
search for volunteering opportunities by category or postcode.
CASE STUDY: Where there's a will...
Ashley Davies became involved with the Rainbow Trust through his design and
construction company, Modus, when the charity was chosen as the company’s
preferred good cause. But for years Mr Davies, left, has gone farther by
chairing the annual fundraising ball committee, as well as changing his will
to leave the charity a legacy.
The Rainbow Trust (www.rainbowtrust.co.uk)
provides practical and emotional support, including respite accommodation,
to families that have a child with a life-threatening or terminal illness.
Mr Davies says: “I think when a child goes through a life-threatening
illness the family can fall apart. The services that the trust provides can
give these families strength and there is a great sense of relief when they
receive the support.”
Mr Davies says that he would have left the charity a gift in his will even if
it did not reduce his estate for inheritance tax purposes. However, he is
“doubly pleased” that the gift will lessen the amount that he will bequeath
the taxman.
