Icon: more incisive work from Intelligent Giving

Giving to charity: the basics

THE BEST WAY TO GIVE is to do it regularly. Charities need continuing support to keep going. So set up a direct debit to your chosen cause, and perhaps top it up every now and again with one-off gifts in response to major appeals.

But you should never - ever - give on your own. Always make sure either the taxman, your boss, or your friends, help you out. First off - if you're a British taxpayer - always tick the Gift Aid box. Then, cajole your colleagues and friends into giving with you. We explain how below.
 

A piggy bank with glasses
 
>
   Make the taxman pay
>
 Make your boss pay
>
 Why giving regularly is best - and how to do it
>
 Making a one-off donation
>
 Get other people involved
>
 Philanthropy for the skint
 
  
>
 Charity credit cards: how to give for free
>
 Charity gifts: what to get the friend who has everything?
> Stealth Giving: how to give without really noticing it
>
 Your will: how to leave a charitable legacy

 
Make the taxman pay

Get more with Gift Aid: If you do nothing else when you're giving to charity, do Gift Aid. This is the simplest way to add to your charity donations without even trying. For every £1 you give, the chancellor will add 28p on top of your donation. The deal is, you have to be a UK taxpayer, and you have to give your address to the charity, but it's a painless way to give more. When charities solicit donations they will mainly ask, through a tick box on a form or a website. You can also sign up to Gift Aid verbally, over the phone for example.

Charities have to sign up to receive gift aid, and some smaller ones might not have got round to it. This is frankly irresponsible - so do your best to persuade them of the advantages of registration: send them to HMRC’s web page.
 
>More about Gift Aid
More about Gift Aid

The UK government introduced gift aid in 1990 as a tax relief for charities.When a tax-paying individual gives money to charity, the charity can claim back the basic rate of tax, currently 28 pence for every pound. This makes a significant difference to charity income, with £830 million raised this way in 2006-07. However only about third of donations use Gift Aid, and charities could benefit even more if more people gave tax efficiently.

Remember, Gift Aid adds money to your donation but costs you absolutely nothing. If you pay a higher rate of tax, you can even claim money back through your tax return - talk to your accountant. This really is a very good deal.

Avoid inheritance tax: Charitable donations don't get charged inheritance tax, so why not leave some cash to a good cause in your will - instead of giving it to the chancellor? Anything you leave behind above £300,000 (going up to £350,000 in 2010) will be taxed at a hefty 40 per cent rate. Unless, that is, you choose to make a donation to charity instead. You won't miss it...

Some tips: Make sure the right charity gets your money by specifying its registration number rather than its name. Many charities have similar names and confusion has occurred (and you wouldn't want to set charities squabbling). Also make clear whether you intend the bequest for a national body, or a local or regional branch, where appropriate (ditto). And make clear what you'd like to happen if the charity closes down or merges. Such things happen, especially to smaller outfits. And if you want to be really good, try getting a solicitor to draw up a will for you for free - and then make a donation. Learn more about legacy giving...

Donating shares and land: If you're in the fortunate position of having land or shares you want to donate part of your assets to charity, you can increase the amount you give without really trying. This is because Capital Gains Tax doesn't apply to donated shares or land. So your gift effectively increases by 20 per cent or 40 per cent depending on your tax position. You will also reduce your taxable income by the value of what you're giving away. Details at the taxman's web site.

If you have shares which are virtually worthless, let ShareGift (a charity) aggregate them with others and pass the proceeds to a number of charities. Nice idea, eh?
 
Get your employer involved

It's the latest trend in business to appear charitable. Some companies even really care about helping charitiy, while others, dare we say it, are pretty token in their approach. Either way, you should be able to persuade your boss to contribute to your charitable efforts. And if they refuse to lend a hand, then resort to peer pressure: the more people that ask the question the more likely the company is to to stump up some cash. Here are some of the ways your employer could enhance your giving.

Match funding: many companies will now match employees’ donations, instantly doubling your funds. They might also match fund money raised through charity events based in your workplace, which could be as simple as dressing up for Comic Relief and the like. (Banish, if you can, the spectre of David Brent. You are doing good.)

Charity Of The Year: does your employer have one? If not, why not? All other half-decent companies do. The best ones canvass staff for the causes they want to support, giving a focus to fundraising throughout the year and engaging with the workforce.

Time off to volunteer: most larger companies will allow time off for volunteering. It might be one day a year, when everyone can work on a project. Or, if they're very enlightened, your boss may allow flexible working for regular voluntary commitments. Push for it. Tell them it’s good for morale (it is).

Payroll giving: this is a tax-efficient way of giving, which is ideal for making regular donations. You sign up to give a regular amount every month, and your employer deducts the amount before tax gets taken off. Your employer doesn't contribute any extra money , but they do look after the paperwork. Giving £10 a month costs a basic rate taxpayer only £7.80 because you'd save £2.20 in tax. For a higher rate taxpayer the cost is only £6 because there's a £4 tax saving. You can give to any charity you choose.

If your employer is registered for payroll giving, you just need to fill in a simple form. If they're not registered, badger them - it's a simple way to enhance their image, and doesn't require much effort. The advantage for you as a donor is that you can sign up to give money and then basically forget about it - you won't even notice it coming out of your pay packet.
 
Give regularly to charity

Cobbling together enough cash to keep a charity going is hard. When charities get money through grants or government contracts, it's often tied to specific criteria (finding work for one-legged pigeon fanciers in Barrow-in-Furness) and must be used within a limited time frame. This is not in itself a bad thing. But good charities only really thrive with a bit of freedom, and this is where your money comes in.

Regular donations are precious because they can be used in whatever area the charity sees fit. Regular giving is especially important as it allows charities to plan for the future. So, if there's a cause you believe in, it's worth signing up to a regular direct debit. Even a couple of quid a month is valuable.

If you want to give money regularly to a range of charities, you should look at opening a Charities Aid Foundation (CAF) Charities Account. This is a nifty way of making sure your all your donations qualify for Gift Aid. Open up an account, deposit some cash, and use the special chequebook to give to whatever charity you like. Over 4,000 organizations also accept donations via the special charity debit card, which also comes with the account. Be aware, though, that some money will be creamed off by CAF, to fund the scheme. You can give regular money to charity for free if you're savvy - no catches, we promise. For example, some search engines and online retail sites will donate money to charity in return for your custom. We call it stealth giving - look here for some smart ways to do your bit. And if you're a sensible soul who clears their credit card bills every month, why not donate through spending? Some credit cards will give money to charity for every penny you spend. Just bear in mind these cards don't offer the cheapest rates, so probably aren't suitable if you're in debt. Check out the charities you could be helping through your credit cards.
 
Make a one-off donation to charity

So, you've come into some money, been awarded a bonus, or your just feeling particularly flush, and you'd like to pass your good fortune on. Making a one-off donation can be a tricky decision. Here are some things to think about. First, what kind of charity do you want to support? Have a look at our charity chooser to get you started. Think about the area of work the charity covers, children, human rights, disability, but also its approach. Is it a campaigning organisation? Does it provide services? How large is the charity? Where does it work geographically? The big household names get all the coverage, but there might be a small local charity who will really benefit from your funds. Ask around.

Read about how and why other people give. And if you're really interested in how and why people give, have a look at some recent research on giving (PDF) and see where you fit in. It shows that single men are the least likely to give, while married women are the most generous, and are more likely to encourage their partners to follow suit. Fascinating stuff.

And, don't forget that giving doesn't just have to be about money. If you're moving house or just fancy a clearout, check out our guide to raising money by shifting your junk.
 
Get other people involved

Giving in a group is scientifically proven (apprently) to make everyone more generous and better cooks. So join with your mates/workmates/street and share the experience. It’s a social occasion (think sports clubs, with a bit less alcohol). Here are some examples of what other people have set up:

The Funding Network (nationwide)
Tadworth & Walton Overseas Aid Trust (local)
The One Percent Scheme (friends)

> Read Dr Fred Mulder's article about giving in a group

You can also get your mates involved with some good old-fashioned sponsored events. Websites such as Justgiving and BmyCharity mean that you don't need to worry about tatty sponsorship forms and chasing people up for their 50p - they can give quickly and easily online, and it's really easy to add Gift Aid too. If your friends and work colleagues forward on the link, you can get donations from people you don't even know. Some activities to get you inspired are here (no bathtubs of baked beans - it's all treks to the Inca Trail these days). Or set up your own event - the sky's the limit.

Pledge to give time or money through pledgebank, and you can inspire others to follow suit.. Be as inventive as you can, and tell everyone you know about the link.

Don't forget the growing number of charity gift sites either. It's moved on from simply buying a cow, and you can buy all manner of tailored gifts, from schoolbooks to sports kit to mosquito nets.
 
Philanthropy for the skint

Philanthropy is making a comeback. Once, the notion conjured up images of bewhiskered Victorian gents doling out guineas to unfortunate urchins. These days, philanthropists come in all kinds of guises, from billionaires like Bill Gates, to heirs with a conscience, to thrusting young city types (re)discovering their soul. And it's even on the telly.

But you don't need to be a billionaire to adopt a philanthropic approach. In short, anyone can think about maximising the impact of their money to make a difference, whether you're giving £5 or £5 million. Take some tips from the big givers on how they make a difference through their donations.

And, if you need some more guidance, the boffins at New Philanthropy Capital have some simple guidelines on thinking like a philanthropist, whatever your budget.