Tsunami Charities missing millions

Don't worry this is not about them being ripped off, just some information on a tax efficent way to make your donation go further.

From The London Times.

INTERNATIONAL aid charities are missing millions in tax relief on donations because so few people are adding Gift Aid when they give to the various tsunami disaster appeals.

Gift Aid is one of the simplest and most effective ways of giving to charity and taxpayers can use it at no extra cost to themselves.

All they have to do is confirm that they are taxpayers and tick a box giving the charity permission to claim the relief on their donation.

Using Gift Aid means that for every pound given by a taxpayer, the charity will receive an extra 28p from the Inland Revenue. This means that a £10 Gift Aid donation, is worth £12.80 to the charity.

Higher-rate taxpayers can reclaim tax relief on gross donations at 18 per cent (the difference between the higher rate of tax at 40 per cent and the basic rate at 22 per cent). This means that a £100 gift from a higher-rate taxpayer, which is worth £128.21 with Gift Aid to the charity, need cost the donor only £76.92.

Despite these obvious benefits, the British Red Cross, which has raised £4 million for its tsunami appeal, said yesterday that half of donors had not opted for the Gift Aid box on their donations. “We are missing out on much needed income,” a spokesman said.

The most effective way of ensuring that every penny of your tsunami disaster donation is used effectively is to make it through the Disasters Emergency Committee. Gifts can be made online or by phone at www.dec.org.uk, by phoning 0870 60 60 900, or by filling in The Times Tsunami Appeal coupon on page 7 of the paper.
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