Financial Times FT.com

Charitable giving

By Dido Sandler

Published: December 22 2006 12:59 | Last updated: December 22 2006 12:59

I’m in line for a nice bonus and would like to donate some of it to charity. What’s the best way?

The taxman shows a kindly streak when it comes to giving to charity. Money gifts receive 28 per cent extra from HM Revenue & Customs if you fill out a Gift Aid form. For every £100 you put in, the charity can claim back £28.20 of basic rate tax from the Revenue. Higher-rate taxpayers can reclaim a further £23.08 (ie 18 per cent of the gross donation of £128.20) on their tax return. Non-taxpayers can’t use Gift Aid, as there’s no tax to claim back.

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