CHARITIES MISS OUT ON 372 MILLION THROUGH DONORS’ TAX-INEFFICIENCY
- “Ensure your chosen charity gets the lion’s share,” says IFA Promotion -
Latest figures from IFAP’s annual Wasted Tax[1] campaign show that just over 2 billion was donated via Covenant, Gift Aid and Payroll Giving; the three most tax-efficient methods of giving.
Over 18 million Britons gave to charity in 2001. Of these, around 13.6 million are taxpayers, yet just 504,000 employees donated a mere 145 each on average (73 million) via the Payroll Giving scheme. IFA Promotion’s conservative calculations reveal that if just one in five employees who donate more than 5 per year to charity did so by means of tax-efficient payroll giving, charities would be in for an additional annual windfall of 152 million.
Covenants to charities must be made for at least four years but can be for any amount. One-off donations of any amount can be made via Gift Aid and regular deductions from salaries can be made by those whose employers operate a Payroll Giving scheme, which now allows any amount to be deducted from an individual’s salary, with the Revenue giving a further 10% supplement on each donation until March 2003.
A 10 gift to charity costs a basic rate taxpayer only 7.80; and, with a ten per cent supplement on all Payroll Giving donations until March 2003, a gift of 10 through the pay packet will be worth 11 to charity.
David Elms of IFA Promotion commented, "Whilst people will always want to slip a few coins into a collecting tin or sponsor a fund-raising event, their chosen charities will benefit far more by donations made tax-efficiently. We are urging people to give what they can but want them to ensure the taxman does the same on their behalf!”
He concluded, “It’s easy to arrange and you don't have to give a large amount. The message is simple - talking to an independent financial adviser can help you make your donations go further for the charity of your choice.”
-ends-
David Elms Richard Winder/ Liz WillderCEO Lansons Communications
IFA Promotion 020 7490 8828
020 7833 3131
1. Independent Financial Adviser Promotion
IFA Promotion was established in 1989 to promote the value and accessibility of independent financial advice to the public. It represents over 10,000 firms of independent financial advisers across the
IFA Promotion’s believes Independent financial advice should be:
Affordable. The option to take independent financial advice should be available, by right, to all - not just the wealthiest in society.
Convenient. IFAs should be available in the location of the consumer’s choice, wherever they live in the
Transparent. It must be clearly transparent to consumers who is able to offer independent financial advice and who is not.
2. Independent Financial Adviser Promotion’s sponsors
AMP NPI | Old Mutual Asset Management |
AXA | Prudential |
Barclays Global Investors Funds | Scottish Equitable Plc |
Bright Grey | Scottish Life |
BUPA | Scottish Mutual Assurance Plc |
Scottish Provident | |
Clerical Medical Investment Group | Scottish Widows Plc |
Eagle Star | Selestia |
Friends Provident | Standard Life Assurance Company |
GE Life | Swiss Life ( |
INVESCO Fund Managers Ltd | Skandia UK Group |
Legal & General | Tunbridge Wells Equitable Friendly Society |
National Savings & Investments | Winterthur Life UK Ltd |
Zurich Life Assurance Company |
[1] Wasted Tax 2002 was produced for IFA Promotion by RAKM and is partly based on a specially commissioned analysis of Inland Revenue data.