Charities lose out to the taxman
Recent research has revealed that UK charities lost out on £808m last year, because those giving failed to do so tax-efficiently.
According to independent financial adviser group Unbiased, people donated £8.2bn to charitable causes last year. But this amount would have increased by 10%, or £808m, if donors had utilised the tax allowances available to them.
About 10 million people do give in a planned and tax-efficient way through Payroll-giving (Give as you earn), where employees allow a regular sum to be deducted from their salaries by their employers and given to specified charities.
Chief executive of Unbiased, David Elms, said: “People’s donations to charities have increased once more this year, but we all need to use the most tax-efficient methods of donation to maximise their beneficial impact on the causes for which they are intended .
“There is no need for anyone to waste tax when making charitable donations and by doing it carefully this can be avoided.”