Make your donations go further by benefitting from tax incentives

Your donation to Oxfordshire Community Foundation can often be enhanced by a variety of tax breaks for charitable giving. Whether you are looking to give as an individual or through your business, there are many options available.
You can get advice and information about making gifts to charity from HM Revenue and Customs. A summary of key information for individuals and companies is below. We recommend that you get advice from your lawyer, accountant or another professional before making any gift.
Gift Aid
Gift Aid enables charities you support to get extra money on your donation without it costing you a penny more. To make a Gift Aid donation, you must be a UK taxpayer. Your donation is treated as if basic rate income tax had been deducted: charities can therefore reclaim that tax from HM Revenue & Customs (HMRC). For example, on your donation of £10,000, we can claim £2,500 in Gift Aid, meaning your gift total will be £12,500.
Tax relief for higher rate taxpayers
If you pay tax at the higher rate, you can claim back the difference between the higher rates of tax (40% or 45%) and the basic rate (20%) on the total value of the donation. For example, if you pay the 40% rate, a donation of £10,000 allows you to recover £2,500, so the donation costs you only £7,500 net, but the Community Foundation receives £12,500.
If you pay the 45% rate, a donation of £10,000 allows you to recover £3,125, so the donation costs you only £6,875 net, but we receive £12,500.
Self-Assessment giving
If you complete a Self-Assessment tax return and are entitled to a tax refund, you can choose to have all or part of the repayment sent directly to a charity of your choice. This is called ‘Self Assessment Giving’ or ‘SA Donate’. You can also ask the repayment to be made as a Gift Aid donation. HM Revenue & Customs (HMRC) sends your refund (plus any Gift Aid tax repayment) directly to the charity by electronic transfer.
Gifts of assets: land, buildings, shares etc.
Individuals can get tax relief on gifts to charity of certain listed shares, securities and other investments. You can get income tax relief, in addition to the capital gains tax relief on gifts of assets to charity. The tax relief applies if you give, or sell at less than market value, any qualifying investments to a UK charity.
Payroll giving
An unlimited amount can be contributed to charity via payroll giving schemes such as CAF Give As You Earn. It costs you less to give because your donation is given to charity from your gross salary before any tax is taken off – so you don’t pay tax on it.
Inheritance tax
If your estate is liable to Inheritance Tax you could choose to leave money to charity to reduce the overall amount of tax due from your estate. You could either leave a fixed sum (known as a ‘Pecuniary Legacy’) or part or all of your estate once other gifts have been distributed (known as a ‘Residuary Legacy’). You can do this through your will, or simply by a declaration to the executors giving instructions as to how, and to which charity, your legacy is to be distributed. Gifts made to a UK charity in the seven years prior to your death are also covered by the same exemption from Inheritance Tax. Your personal accountant or solicitor will be able to advise on the best option for you.
From 6 April 2012, if you make a gift in your will to charity of at least 10% of your net estate, the rate of inheritance tax due on the taxable part of the estate is reduced from 40% to 36%. A gift of 10% can leave the same amount available to your other beneficiaries as one of 4%. Any gift greater than 4% but less than 10% results in your beneficiaries receiving less money than they would have done if the gift was for 10%. HMRC provides an Inheritance Tax reduced rate calculator here:
Donations by limited companies
Your company’s donation to charity is deductible from its total profits when calculating Corporation Tax. Corporate donations are not eligible for Gift Aid.
Gifts of land, buildings or shares
Your company could benefit from Corporation Tax relief if it gives land, property or qualifying shares to a charity, or sells them to a charity at less than their market value.
Payroll giving
An unlimited amount can be contributed to charity via your employees’ payroll giving. It costs your employees less to give because their donation is given to charity from their gross salary before any tax is taken off – so they don’t pay tax on the gift.
Contact our Head of Development Kate Parrinder
to set up a conversation or meeting about your giving.
“I am delighted that via our fund with OCF we can join together with other donors to support causes we are all passionate about. It means we can do more good by working as a collective.”
“OCF has been a key partner in delivering efficient, effective and independent rounds of community funding. Their evidence-based approach and broad reach into the community sector has helped us deliver support across Oxfordshire’s communities in a way that is transparent as well as fast.”
“OCF’s knowledge and resources drive real change. They unlock the power of community, allowing people to feel more connected to those around them, and for all who live in Oxfordshire to have better lives.”
“I opened a fund with OCF because of their knowledge, expertise and extensive contacts. I wanted to be part of it, to make my dream come true in helping the very young – the fund encompasses everything I’ve done in the past and expands the impact I’ve achieved”.
“As a partner, OCF provide a mechanism which allows us to channel our philanthropic investment directly into the heart of the projects we care about.”
“When you become wealthy and you have a lot of money, you’re starting to think about giving it away on a slightly industrial scale! Even if you give away the same percentage as ordinary people, you’re giving away larger sums of money so the way you’re going to do it is different.”