As you hunt for those final presents to complete your annual shop, why not spread the Christmas spirit by giving a donation too?
With Christmas just round the corner, many of you will be ticking off those last few names on your present lists in anticipation of the big day. But as you hunt for those final presents to complete your annual shop, why not spread the Christmas spirit by giving a donation too?
The good news is that if you're a UK tax payer, every pound you give as a Gift Aid donation will automatically be worth £1.28 to the charity. This is because if you pay tax at the basic rate of 22%, you actually have to earn £12.82 to receive £10 in your pay packet. The charity is allowed to reclaim that money from the Government, hence boosting your contribution at no extra cost to you.
In most cases, all you'll have to do for the charity to benefit is a tick a box on the donation form, or give an oral declaration (if you're donating over the phone) stating that you want your payment to benefit from Gift Aid, and that you've paid enough tax this year to cover what the charity will reclaim. Other than that, you don't have to do anything else, as it's the charity's job to reclaim any tax owed.
It's even better news if you're a higher rate tax payer, as you can claim back the difference between the basic and higher rate of tax. Using the example outlined above, on a £10 donation you could claim back a further £2.31 (18% x £12.82). You do this either through your Self Assessment Return or by writing to your tax office, giving details of your total Gift Aid donations.
You must remember that the Gift Aid Scheme is only for monetary gifts, and there are rules limiting the value of benefits you can receive in return. If in doubt, ask the charity for more information.
Time is money
If you don't fancy giving cash away, then why not give your time? The busy Christmas period means that many charities are crying out for volunteers. Homeless charity Crisis runs its famous 'Open Christmas' events each year in London. Doors open on 23rd December for a week, with the charity needing volunteers to fill a variety of roles.
Also, you can always help by buying charity Christmas cards. Clintons is one of the more generous givers on the high street, paying an average donation of 21% per pack. In addition, Marks and Spencer should give you some food for thought this Christmas, as it is currently supporting household charity Shelter through the sale of its Food to Go, Gastro Pub and Charity Christmas cards.
Old clothes, new tricks
Another way to donate without spending money is by giving away clothes, shoes and other unwanted items. Many charities are happy to give your clothes a new home, giving you a chance to declutter your wardrobe, as well as helping others who may not be as fortunate as yourself.
If you do decide to give something this Christmas, however big or small, make sure you make the most of the benefits available. Gift Aid is a great way to maximise your donation with minimal effort --giving you the added benefit of showing off your Foolish generosity at the same time!