Many individuals and families aspire to support the causes they care about by making charitable donations. There are various ways you can make philanthropic donations and the interaction between them can be complex, often making it difficult to measure and achieve your giving aspirations.
Individuals may choose to make charitable donations, either by way of making a cash donation or alternatively by making non-cash gifts, such as investments or land and property. Alternatively, a charitable foundation or Trust may be established to meet a family’s long-term philanthropy strategy. In some cases, the use of a donor-advised fund – a charitable trust provided by a third party who deals with all of the administration and compliance requirements that come with a charitable Trust – is an appropriate alternative to establishing your own charitable Trust.
Charitable legacies may also be included in your Will. It is important to consider all available options to determine the best route for you. Once you have established your aims and aspirations, you may wish to consider the various tax reliefs surrounding your philanthropic giving to maximise tax efficiency.
We work alongside your other professional advisors to provide a seamless, full service offering when structuring your short- and long-term philanthropic planning. We understand that making a charitable donation in a tax-efficient manner is only one element of what you are ultimately trying to achieve.
We can provide you with advice on the most suitable and tax-efficient route (or routes) to achieve your giving aims, in particular, we can help you with the following:
Over 70% of registered charities in England and Wales have an annual income of less than £100,000 (Charity Commission (The regulator for charities in England and Wales) as at 30 September 2018). Many of these are family Trusts. Charitable Trusts play an important role in providing support to causes that might not otherwise get assistance from larger organisations. Many are set up by philanthropists who have a passion for giving, or wish to leave a lasting legacy for future generations.
Establishing a personal charitable Trust gives you greater flexibility, allowing you to help fund local projects or charities close to your heart. It can even enable you to involve family and friends to help achieve your giving goals. Establishing a charity can be a more tax-efficient way to donate to good causes, with multiple taxation benefits.
Our National Private Clients team has extensive experience working with philanthropic clients in developing and implementing their philanthropic strategy. We work with you to establish your goals and understand the practical issues that arise when giving. We work with our award-winning Social Purpose and Non Profits team to provide advice on setting up and managing your charitable Trust, offering as little or as much support as you need.
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