Did you know that the Inland Revenue offers donors to charity a range of tax relief options that benefit both the donor and the charity?

If you are a UK tax payer, then you should already be giving using Gift Aid for all your charitable donations.  It is a simple process, and makes every £100 you give worth £128 to the charity.  Ask the charity for their Gift Aid declaration form.  Once you have signed it there is no need to re-new.

Individuals who choose to donate shares to a charity are entitled to claim back full tax relief against the value of those shares.  So a gift of shares worth £1,000 for a higher rate tax payer will mean a £400 reduction from their Income Tax bill.  Furthermore no capital gains tax will apply.

Legacies left to charity are exempt from Inheritance Tax and for a business supporting a charity, their donations to their chosen good causes can be deducted as a ‘charge’ when working out its profits for Corporation Tax purposes.

Payroll giving makes it easy for individuals to donate a regular amount tax effectively to a charity of their choice, provides charities with a regular income, and strengthens the part businesses play in building a strong and cohesive society.

Small and Medium Enterprises wishing to set up payroll giving for their work force may be interested to hear of a Government programme to support its development. The £8.3 million investment was announced by the Chancellor in Budget 2004. SME’s will receive a one-off grant of up to £500 depending on their size, as an incentive to set up a payroll giving scheme. In addition, the Government will match pound for pound, up to a maximum of £10 per month, an employee’s donation for 6 months from when the employee signs up. For more information check out www.payrollgivinggrants.org.uk

SME’S are encouraged to contact the Community Foundation for Bournemouth, Dorset and Poole (www.localgiving4dorset.org.uk) who are willing to support any business that wishes to support a greater culture of philanthropy.  Speak to Lorraine Dabner, Director of Development on 01202 292255.