This article is written by Matthew Tucker and is part of the Webjam Charity Channel
January is a time when you might be reviewing your work situation: perhaps you want to do something closer to your interests, maybe even help the community through employment with a charity? But you don’t necessarily need to change jobs to be more charitable in 2009. Combining charity with your employment is one of the most effective ways to donate money.
Tax Relief on Donations
Understanding tax is often taxing and each country has its own legislation on tax relief on charitable donations. However, a couple of examples from the UK are Payroll Giving and Gift Aid.
If you pay tax through PAYE (Pay As You Earn), then the Payroll Giving scheme offers a simple way to reduce the cost of making regular gifts to UK charities. When you donate through Payroll Giving, you give a donation from your wages or pension before Income Tax deduction; this means that you only pay tax on what is left after you have made the donation. For example, you might pay tax at the higher rate of 40% and authorise a monthly donation of £10; this means you save £4 (40% of £10). The actual cost of the donation to you is £6.
Gift Aid applies when you make a donation separate from your payslip. Charities can take your donation and reclaim from the government the tax you have already paid on that donation, which as standard is 20% of your donation. So for every £10 you donate, the charity will receive a contribution from the government, totalling £12. All you need to do is declare that you are a taxpayer and Gift Aid does the rest.
For more information on these schemes, visit Directgov: the official government website for UK citizens. For an independent and non-governmental source of information, try Workplace Giving UK.
An Elected Company Charity
The relationship between corporations and charities is stronger than ever due to the mutually beneficial partnership created; the charity receives financial support and the company receives positive PR exposure.
Many companies have an elected charity, which fundraising events are in aid of. If your company doesn’t have one, put forward the idea: perhaps your company could hold a vote to decide which charities to support, with a different charity each year?
There are also many ways for a company to raise money with little to no cost. If you have a communal area in your work building, perhaps you could offer the area to traders to sell products during the lunch break? This can be a popular scheme with employees as they have the opportunity to buy gifts and accessories while at work. By charging a standard fee to the traders, your Company will be able to generate a steady income for a nominated charity. A trader fee of just £20 a day will generate around £5,000 a year for charity.
Company Sponsorship
If you’re doing a heroic fundraising event then you want to collect as much sponsorship money as possible. Asking for money from colleagues can be an awkward task, instead try asking for sponsorship support from your company direct; again, this can be a positive PR exercise for your employer. Some large companies even pledge to match the total amount raised by employees in official sponsored events.
Remember to thoroughly research any charitable schemes involving you and your job before taking any action.
This article is written by Matthew Tucker and is part of the Webjam Charity Channel
