Donations, Gift-Aid, Shares & Legacies
By far the most beneficial way of making gifts to charity is by using Gift Aid. This is because the charity enjoys special tax advantages.
We are pleased to received donations in the form of cheques, postal orders, Charity Aid Foundation vouchers/cheques, all of these should be payable to NEW CUT ARTS. Tax can be recovered on any donation at the basic rate if you confirm you are a taxpayer. If you give £100 we can claim £28.21 (as at November 2000) and the total value of your give is £128.21. Higher rate tax payers can claim the difference between basic and higher rate tax on their tax return. Now you can give as much as you like direct from your pay and for every £10 you give the Government contributes £10 more. This offer is only available until 2003; you will receive immediate tax relief on your giving of up to 40%. If you want to Give as you Earn you should discuss this with your employer.
2. Gift Aid – How Does It Work?
If you the donor, make a donation to charity, of whatever amount, the charity can reclaim the basic tax on that donation if it is made under a Gift Aid Declaration.
Example: Mr A donates £100 to charity. At the time of making the gift he signs a declaration stating that the gift is made under the Gift Aid Rules. The charity can reclaim tax of 22% so the charity receives £128 for Mr A’s generous donation of £100.
Signing a Certificate saying that the donation is made under the Gift Aid rules can be varied.
- You could sign a certificate for the one donation or you could state it is for a series of donations. You can also state that it will cover all future donations to that charity for life!
- You can therefore give an amount each week, month or annually or just make one donation.
These rules replace the previous system of Deeds of Covenant prior to April 2000.
A new tax relief was introduced in 2000 whereby individuals can obtain the relief on the gift of shares to a charity. So another way of gifting would be to give shares or securities to a charity. If you do that you will be able to claim tax relief for the gift at your top rate of tax. This is in addition to the capital gains tax relief i.e. you pay no capital gains tax on a gift to a charity.
The Charity can then either keep the shares and utilise income or sell the shares. As a charity there is no tax to pay on the sale of the shares so a significant tax benefit is gained by both you and the charity.
4. Leaving A Legacy
Legacies to charities are exempt from inheritance tax. You can add a codicil to your Will and if you have not yet made a Will and need help to do this our charity Solicitor will be pleased to help you with this or to provide a suitable form of words to make a pledge for the future to our charity.
- A Residuary Legacy requests that the residue of your estate after all other legacies, debts and tax are paid, is left to NEW CUT ARTS and can be linked to the name of someone special to you. The money given in memory of this person will provide a sum year by year to help others.
- A Pecuniary Legacy is a specific cash sum which you mention in your Will is to be set aside for NEW CUT ARTS. A form of words your solicitor may find useful is “I give the sum of £……to The NEW CUT ARTS Fund, Registered Charity No. 108358, The Old Maltings, New Cut, Halesworth, Suffolk IP19 8BY.
We also welcome enquiries from local and regional businesses which might be looking for a worthwhile community project in which to invest. This can be achieved through corporate sponsorship schemes and/or from contributions ‘in kind’. So far we are happy to acknowledge such support from the following organisations:
Crosse Ram & Co
Blythweb Ltd (donation of this website)
For further information on any of the above please phone Lesley Finbow