Have you seen those desperate children in the streets and you want to help them but you do not know how? Many individuals are willing to help but they do not clearly understand how Donation and Charity works. If you have been wondering of how you can make a donation to charity then worry no more as here is a guide of several ways in which you can do that.
- A tax efficient way: You can easily donate to charity using a tax efficient method. Through this way you can be able to claim some of your taxes. In doing this you must make sure that the charity you are donating to have been recognized by customs or HM revenue as a charity. You can do this by asking whether they have HMRC reference number for charity. You will be able to get some tax relief depending on the kind of gift that you choose.
- Through a pension scheme: You can give to charity through a personal or company pension scheme. This is advantageous on your side as it will cost you less since the donation is given directly to charity from your gross salary before any deductions are made, this means you will not have to pay tax for the donations that you make.
- Gifts in your will: Any of the donations to charity that you make in your will are free from any deductions as they do not incur the inheritance tax. Any donations that you make seven years to your death are free from any tax.
- Asset donations: You can make asset donations to charity by donating some of your assets to the organization. The assets that you give are not charged anything and all the income that they will generate will go directly to helping.
You should always keep records of all your donations top charity as this will help you when it comes to claiming some tax relief .You should keep a list of all donations made throughout the year showing the entire amount, date and the charity organizations involved. If the organization asks you to sell the gift for them you should make sure that you keep these records as you might get some tax relief from them. Make sure that you have every paper and any documents involved when selling the gift as this will be required while evaluating how much relief you qualify for. After donating to charity the organization will always contact and brief you on the proceedings of your donations.