I have been thinking of making a donation from my business profits to my local NHS cancer unit, and wonder where you get the large cheques that are for show! And is the donation tax deductible
More importantly, ensure your donation is
tax efficient:
Gift Aid
If you're self-employed or want to make a one-off donation or react to an appeal, Gift Aid is the best choice. It allows a charity to reclaim the basic-rate tax on donations made by UK taxpayers from the Inland Revenue. In addition, higher rate taxpayers can claim 18% tax relief on the gross amount of the donation, meaning that the donation costs them less.
You can make charitable donations by either or both methods – Gift Aid and Give As You Earn, but you can only claim tax relief once on each type of gift.
There are no longer any restrictions on charitable giving.
You must make a declaration to the charity that you want your donation to be treated as Gift Aid so that they can claim the tax back.
You can do this over the phone, but usually the charity will send you a form to sign. One declaration can be used to qualify as many gifts as you want or for whatever period you wish. Payments are then made direct to the organisations by cheque, direct debit, standing order or credit card. Donations can be made of any size and either on a regular basis or as a one-off gift.
Qualifying for Gift Aid
For your gift to qualify, you must pay at least as much tax as the amount the charities will reclaim on your gifts in the tax year in which you make them. The tax year runs from 6 April to 5 April the following year.
You must not receive excessive benefits in return for your gift. Further details are outlined in the Inland Revenue's leaflet on charity donations.