The best ways of giving are generally:
Covenants remain the most effective way for many individuals to give their support. They enable FoCT to predict future income with a high degree of certainty, whilst enabling significant funds to be given over time by way of monthly or annual contributions.
A covenant enables you to spread the cost of your gift over a number of years and for FoCT to reclaim the income tax you have already paid. With the basic rate of income tax at 20%, for every £1,000, you donate by covenant; FoCT will receive an extra £250 at no extra cost to you. Higher-rate taxpayers can also claim additional relief.
For those able to make a significant lump sum payment, giving by Gift Aid is the tax-efficient way of contributing. The tax advantages are the same as for Gift Aid covenants. This will increase the value of your gift by a quarter at no extra cost to you.
If you are a higher-rate taxpayer, you can claim additional tax relief, calculated as the difference between the basic rate and the higher rate of income tax (currently 20%) on the gross value of the gift.
Donations by or through charitable trusts & foundations
You may have your own Charitable Trust through which you wish to make your gift. Whilst there will be no tax recoverable, it is of course possible to make recurrent gifts through such trusts, thus enabling very significant sums to be contributed by means of relatively modest quarterly or annual contributions.
Companies can claim Corporation Tax relief on all donations to charities.
Gifts of publicly quoted shares, in addition to being exempt from Capital Gains Tax liability, enable the donor to claim income tax relief on the current value of the shares, which can make such gifts extremely tax efficient. For example, a higher-rate taxpayer with a liability to pay Capital Gains Tax, donating shares bought for £20,000 and now worth £40,000, would save £3,600 in Capital Gains Tax and £16,000 in income tax relief. So the gift, worth £40,000 to the charity, would cost the donor just £20,400.
Any form of gift is of course most welcome. Direct transfers of stocks, shares, property and works of art will not incur liability to Capital Gains Tax. All outright gifts, including bequests, are exempt from Inheritance Tax.