If you feel like doing some good over the festive season, here are 12 ways to make a difference...
These days I wouldn't blame you for thinking that Christmas has become a tad materialistic. Instead of seeing it as a time to spend with your family and friends, has it simply become a day when we spend too much, eat too much, and drink too much?
So if you feel like doing something 'good' and charitable over the festive season, here are 12 ways of giving this Christmas:
1) Tick the Gift Aid box
The Charities Aid Foundation estimates that around £750 million of Gift Aid goes unclaimed every year. But this is the one box you shouldn't be afraid to tick.
In a nutshell, the Gift Aid scheme allows charities to reclaim the basic tax rate (20%) that you have already paid on the money you donate. This means all donations which include Gift Aid are worth an extra 28p for every £1 given, at no extra cost to the donor.
If you're a higher rate tax payer, you can also claim back the difference between basic and higher rate tax on your donation.
So make sure you tick the Gift Aid box every time you make a donation.
2) Give As You Earn
An easy way to give to charity is through your salary. With Give As You Earn, donations are taken from your pre-tax pay, so you can benefit from the full income tax-relief. This means that if you donate £10 and you're a basic rate tax payer, it will only cost you £8, and if you're a higher rate tax payer, it will cost you £6.
However, in order to take part in this scheme, your employer will need to be signed up to it, so check with your HR manager. Some companies will also match your donations.
3) Buy charity Christmas gifts
Thanks to the TV series 'Mary Queen of Charity Shops', charity shops are upping their game. This means charity shops aren't just full of old bric a brac, and instead, it's now possible to pick up designer gear at great prices! So why not pop down to your local charity shop to do some Christmas shopping? You can find local charity shops on the Association of Charity Shops website.
Alternatively, most major charities have their own charity gifts that you can buy from their website. Good Gifts also offers a variety of presents that can help a range of causes.
4) Donate unwanted Christmas presents!
There's always that one present you really didn't want or need, or you always end up with two of the same thing. So if you have any unwanted Christmas presents, take them down to your local charity shop. Gift Aid can be claimed by charity shops on donations, so if you are donating something of value, make sure you inform the shop that you are a tax payer.
5) Use a charity credit card
Another option to consider is to use a charity credit card. There are plenty to choose from and most will offer a one-off donation when you start using them, as well as donate a percentage of your spending to charity each year.
The PDSA Visa Card (from MBNA) donates an initial £25 towards caring for sick and injured pets. Then every time you use your card to buy something, 0.25% of the value of the purchase will also be donated. The Cancer Research Credit Card (from Halifax), also donates £20 initially, followed by 0.25% of every purchase you make.
That said, you can earn more for your chosen charity by using a cashback card for your spending, such as the American Express Platinum Cashback Card. This card offers 5% cashback for three months (up to a maximum of £100), and between 0.5% and 1.25% thereafter, depending on how much you spend.
Use this card on a regular basis and you'll earn a nice bit of cashback which you can then donate to your charity, with Gift Aid. Just remember to pay off your credit card bill in full each month, otherwise you'll be hit with a hefty interest rate of 19.9%.
You can compare cashback credit cards with lovemoney.com.
6) Open a charity account
A Charities Aid Foundation account is similar to a current account, but only holds the money you put aside to give to your favourite causes. All the money in the account will automatically receive Gift Aid and whenever you want to donate to charity, you simply do so through your account.
7) Use your savings
You can also open a savings account with Charity Bank - it's just like any other savings account, except that while your savings remain in the account, Charity Bank can use them to offer affordable loans to charities, voluntary organisations and social enterprises. What's more, any interest you earn can be donated to a charity of your choice.
8) Give shares, land or buildings
If you give shares, land, or property to a UK charity, you can claim both income tax relief and Capital Gains Tax relief. So if you donate £1,000, it could reduce your tax bill by £220, or £500 if you're a higher tax payer.
You can find out more from this guide on the HMRC website.
9) Legacy giving
Legacies were worth £1.8 billion to charities last year, but only 14% of wills include a charitable legacy, according to the Charities Aid Foundation. Gifts to legacies can be made for money and items of value (such as jewellery or artwork). Charitable donations in a will are completely free of inheritance tax and you can find out more on the HMRC website.
10) Use cashback websites
If you shop online, cashback websites allow you to earn a percentage of your purchase back. But rather than keeping that money for yourself, if you use websites such as froggybank, giveortake, and ushopucare, you can give that money to a charity of your choice.
What's more, you can use everyclick.com instead of Google which donates proceeds to the charities they work with or to the charity of your choice. Read The best way to shop online to find out more about cashback websites.
11) Volunteer
If you really want to help this Christmas, why not offer to help out at a homeless shelter, send cards to armed forces, or go on a volunteer holiday break? You can find out more about volunteering on the TimeBank website and the Do-It website.
12) Get fit in the New Year
If your New Year's resolution is to get more exercise, why not sign up for a charity run and make some money for your favourite charity? This website will show you which charities still have places left for the major running events next year.
Get help with lovemoney.com
If the festive season is leaving you a little strapped for cash, lovemoney.com can help you boost that income!
First, adopt this goal: Make some extra money
Next, watch this video: How to save when you've got no money
Finally, why not have a wander over to Q&A and ask other lovemoney.com members for advice?
*Thanks to the Charities Aid Foundation for many of these ideas.