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Charities Aid Foundation (2023). UK Giving Report 2023.
From medical research to foreign aid, disaster relief, and more, Britons donated £12.7 billion to charities throughout 2022.1
This article includes tips, suggestions and general information. We recommend that you always do your own research and consider getting independent tax, financial and legal advice before making any important decision.
Charitable giving has many potential benefits for those who open their hearts and wallets. It can boost mental wellbeing or possibly help grow a sense of community. In this article, learn more about charity donations and explore the many common benefits of giving to charities.
People may be able to give cash, goods, assets, or shares to not-for-profit organisations. In the UK, individual donations to a charity or community amateur sports club are typically tax free.
What can be donated to charity, exactly? Here are three common examples of charitable contributions.
Money donations — also referred to as cash donations — are monetary gifts given to not-for-profit organisations. People can typically make such donations directly from a bank account, credit card, digital wallet, or money transfer provider.
People can give money through a charity's website or third-party payments provider. PayPal, for example, makes it easy to donate to charity online and even start a fundraiser.2 People can also choose their favourite charity and donate £1 each time they check out with PayPal.
To qualify donations for tax relief, keep the purchase receipt a bank record of the transaction.
Goods and other belongings can also be donated to charity, including clothes, household items, artwork, collectibles, antiques, books, jewellery, and even cars or boats. For example, someone might donate their second-hand clothes to a local youth shelter or charity shop.
In most cases, Britons do not have to pay Capital Gains Tax (CGT) when they donate land, property, or shares to a registered charity. However, Revenue & Customs require to keep all records of any sales, alongside proof that the chosen charity has accepted the gift.
There are many possible personal and societal benefits of charity giving. As Charities Aid Foundation found, 20% of people surveyed who give to charity do so because it makes them feel good.3 Acts of altruism, such as donating to charity, have also been known to increase life satisfaction and positive emotions.
Here’s a closer look at the potential benefits of donating to charity.
Donating to charity can give one a sense of personal satisfaction and growth, possibly improving happiness and self-esteem. As a recent study found, spending money on others can increase feelings of wellbeing for many people.4
Making even a small donation can encourage others to donate too. Friends, relatives, and co-workers, for example, might be inspired to support important causes and give to their communities.
In fact, many people join up with family or co-workers to make group donations to charity. Parents can also start a precedent with their children and make a tradition of donating. They can demonstrate the importance of generosity and charitable giving from an early age.
Donations can change lives across the globe if choosing a charity abroad or worldwide foundation. But people can also make a difference in their hometown and see the impact of their contribution firsthand. By supporting local businesses, people can reinvest in their economies and keep money in their communities.
The PayPal Giving Fund, for instance, helps people to support their chosen causes. Donors can even browse community charities across the country to find the causes that mean the most to them.
Learn more about supporting the causes you believe in with PayPal.
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