Mark Lyttleton recently launched a new charity, Percent For Good, recognising the potential of Payroll Giving schemes to making charitable giving more simple and effective for employees. This article will provide tips and pointers for benefactors who are keen to ensure that their money goes where it will have the most impact.
Prior to parting with funds, donors in England and Wales should check the charity’s name and registration number, looking out for the Fundraising Badge on charity materials to ensure the organisation is committed to good fundraising practices. It is important to exercise caution where collections for personal or general causes are concerned, as personal causes are not regulated by the Fundraising Regulator and are a common ploy of fraudsters.
Where a fundraiser calls at their home, potential donors should inspect their ID badge and ensure it is not copied or handwritten. Collection tins must be sealed, with no signs of damage. If in doubt, the collector should be happy to supply more information, answer questions and talk about the charity’s work.
In the UK, face-to-face fundraisers must obtain a licence from the relevant local authority licensing team. Givers should never share their card details, three-digit security codes or PINs to fundraisers. Where they intend to set up a direct debit donation, the fundraiser may ask the donor for their bank account number and sort code, but givers should be wary of any fundraiser who asks to see their bank card.
When donating online or over the telephone, benefactors also exercise extreme caution and avoid giving out any card details. Where they suspect an appeal or collection is illegal, they should report it to the police.
In many countries, including the United Kingdom, charitable giving attracts certain tax incentives. Tax deductions enable donors to give much more to their chosen cause at the same cost to themselves. Under the UK Government’s Gift Aid scheme, charities can claim an extra 25p for every £1 donated by UK taxpayers at no additional cost. To facilitate this, the donor simply makes a declaration confirming they are a UK taxpayer. There are even greater incentives for higher-rate UK taxpayers.
Online giving is a popular way of supporting charities today. However, large online donations can attract considerable fees. When donating via credit card, payments will incur standard credit card processing fees, with a £1,000 donation generally attracting a fee of £20–£30. Bank transfers and cheque donations can be a more effective route, ensuring that more money goes to the charity rather than being eaten up by bank charges.
Saving money on transaction fees and taxes is a significant consideration for many givers. However, the donor’s primary concern is usually ensuring that their donation will go to a cause where it will have the maximum impact. Percent For Good’s expertly curated Cause Portfolios feature impactful charities that meet the highest selection criteria, with an emphasis on smaller organisations with an excellent leadership team, robust strategic partnerships in the communities they operate in and a compelling vision.