Facilitating effective giving for UK tax-payers
UK tax-payers donating directly to UK charities can boost their donation by claiming 25% Gift Aid. However if you want to donate to one of our recommended charities that isn't in the UK you have not been able to boost your donation, until now.
Fortunately, The Life You Can Save UK can help. If you want to support one of our recommended charities (or The Life You Can Save itself) you can give to The Life You Can Save UK and let us know where you want the money to go. The Life You Can Save UK can then regrant the money as instructed. We have partnered with UK charity Prism The Gift Fund and can boost your donation by 25% Gift Aid (minus Prism Admin Fee).
The following recommended charities are UK charities and we advise you to donate directly to them to attract the full Gift Aid amount; Against Malaria Foundation, GiveDirectly, Oxfam, SCI. However if you want to give to any of our other recommended charities The Life You Can Save UK is an effective way of boosting your donation.
If the payment is received by bank transfer or cheque there are no further fees to pay. Standard credit and debit card fees apply for those giving via those methods. The BT MyDonate web portal does not charge any fees, nor does The Life You Can Save receive any fees from these donations.
Background - Gift Aid
Gift Aid is a UK government scheme by which charities can claim tax relief on charitable donations. This is usually done at the time of donation. In the UK the basic rate of tax is 20%. When a donation is ‘gift aided’ the government effectively restores the tax that you have already paid on your earnings by boosting the donation by 25%.
If you are a higher rate taxpayer (earnings over £43k) you can claim back a proportion of your donation, typically 25% for very high earners.
UK citizens are very familiar with the concept of Gift Aid and expect to use it. For people making a large donation the effects can be significant.
Consider this scenario:
- Mrs Smith is a high net worth individual who makes a £100,000 donation to Charity X.
- She claims Gift Aid. This boosts the amount that Charity X receives by 25% to £125,000.
- As a higher rate taxpayer Mrs Smith can claim back £100k x 25% = £25k
- So the £100k donation only costs Mrs Smith £75k and yet Charity X receives £125k
Eligible donors in the UK can support The Life You Can Save as well as several of our Recommended Charities at these links:
The Life You Can Save
Innovations for Poverty Action (IPA)
Limited companies can pay less corporation tax when they donated to a UK charity. Already a number of UK companies have used The Life You Can Save UK to donate to our (non-UK) recommended charities to take advantage of this deduction. If you would like to find out more about donating as a company, please contact Nick Hopkinson, Director of Development (UK & Europe).
The Life You Can Save has partnered with Prism The Gift Fund to create The Life You Can Save UK (a collective fund of Prism). Prism is a UK registered charity (1099682) whose aim is to increase the flow of funds into the charitable sector from UK donors through effective administration. Prism as a registered charity are able to claim Gift Aid (25%) on our behalf and charge a fee for their services, all of which goes into the running of their charity. We are happy to provide full information about the Prism administration charge, please contact us if you would like more information.
This arrangement provides The Life You Can Save with a more cost-effective model than setting up our own UK charity at this point in time. If you have any questions about The Life You Can Save UK or Prism, please contact Nick.