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Make a Gift
Regular GivingA commitment is undertaken to make annual, quarterly or monthly payments for an agreed number of years, normally by Standing Order. Completion of a Donation Form by a UK taxpayer allows the RSA to reclaim a sum equal to the basic rate of income tax. (Higher-rate taxpayers can also reclaim the difference between the basis (22 per cent) and higher (40 per cent) rate bands). For example, £1,000 per annum pledged for five years will bring £6,410 to the RSA but only cost a higher- rate taxpayer £3,846. One-off GiftsA cash gift of any value can be made by cheque, credit card or bank transfer. As with Regular Giving, the completion of a Donation Form allows the RSA to reclaim the basic tax rate and a higher-rate taxpayer to reclaim the difference between basic and higher rate taxes. For example, a one-off gift of £10,000 will bring £12,820 to the RSA but only cost a higher-rate taxpayer £7,692. Donating SharesRecent changes in legislation make this one of the most attractive methods of maximising a donation to the RSA and minimising income and capital tax liability to the donor. Shares listed or dealt on a recognised stock exchange (UK or foreign), units in authorised unit trusts (and similar collective investment) and shares in OEICS are eligible. Not only are donated shares free of Capital Gains Tax (CGT), the market value can now be set off against your income tax liability. For a higher-rate taxpayer whose CGT annual exemption has already been used up for the year, the incentives are enormous. This is particularly so if the value of those shares is substantially higher than at acquisition. For example, donating shares originally purchased for £10,000 which are now worth £25,000 will bring £25,000 to the RSA, but you will receive income tax relief of up to 40 per cent X £25,000 (£10,000). In addition, by donating them to the RSA rather than selling them to fund your donation, you will also save up to 40 per cent X £15,000 (CGT of £6,000). The true cost of your £25,000 donation in this example would, therefore, be just £9,000. Please note that we strongly recommend that you consult your financial adviser as the benefit of share giving will depend on the capital growth of the shares you intend to donate and your own tax situation. If you require more detailed information on share giving, please contact Julia Shock: Payroll GivingIf your employer operates a payroll giving scheme, any donation to the RSA is automatically (and anonymously) deducted from your gross salary before you pay tax so higher-rate taxpayers need not remember to reclaim tax relief through self-assessment. For example, if you pay tax at the basic rate and give £25 a month it will cost you £19.50 (or £15 if you are a higher-rate taxpayer). Your company may also operate a matched-giving programme which will enhance your gift. Transfer of AssetsA gift of a capital asset such as a work of art, collection or other property can be made to the RSA without any Capital Gains or Inheritance Tax liability being incurred. In addition, no tax would be payable by the RSA if the value of that asset was subsequently realised. The RSA is, of course, delighted to receive gifts of any nature and of any amount, whether tax-efficient or not. Company GivingThe recent streamlining of procedures for reclaiming Corporation Tax on gifts to charities has made the process much simpler. Companies or unincorporated associations pay a gross figure to the RSA and then claim tax relief when calculating their Corporation Tax. No further tax reclaim by the RSA is then required. Giving from AbroadUSAThe RSA is registered in the US as a 5.01(c)3 organisation and all contributions are tax deductible. Dollar donations should be sent to the address below. Cheques should be made payable to the RSA. Credit card donations can also be made. Lynn Broadbent, MBE |
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