Forget The Bucket

Many people in the UK make donations to the various charities.  However, according to a survey by IFA promotions, the organisation that promotes the benefits of independent financial advice to the public, charities are missing out on £372 million this year. The reason is that people do not give in a tax efficient way. For example, if you donate money to charity you can get tax relief on it. Most charities ask if they can receive the tax relief, rather than you. This is known as gift aid and means you still give the charity the same amount but the Government also adds some on in the form of tax relief.  By putting money into a charity box or bucket, you are not being tax efficient.  However, the majority of people only do this irregularly, when a collection box or bucket is put in front of them.  If you want to give to charity, make sure they get the most they can - especially when the Government will give them the tax relief for free. Search the archive for Charities.