Tax-effective giving to the arts
Tax-effective giving to the arts
By
Arts & Business
SUMMARY
Private giving is a growth area for arts funding and such support should make the best possible use of the available tax incentives. This guide explains various forms of individual giving: gift aid, donations from higher and lower rate taxpayers, payroll giving, gift of shares, land and property, legacies. For each it includes detailed case studies.
Gift Aid works on the principle that in order to have £50 in your pocket to donate to an arts charity, you have had to earn £62.50. The difference, £12.50, is the income tax you are paying on your earnings. For most people this tax is automatically deducted from their pay by their employer through a system called PAYE. For self-employed people, the tax is calculated when they complete their tax returns.
Gift Aid allows the charity to claim this income tax you have (or will have) to pay on the money you have donated to them.
Resource type: Guide/tools | Published: 2014
