The 2014/5 financial year is coming to an end and many organisations are in the throes of planning for the year ahead. As directors pore over balance sheets, budgets, sales strategies and marketing campaigns, they would do well to review the merits – financial and beyond – of charitable giving.
For starters, Her Majesty’s Revenue and Customs (HMRC) allows tax relief on Corporation Tax when a limited company gives to charity by way of the following: money; equipment or trading stock; land, property or shares in another company; employees on secondment; and sponsorship payments. (Information can be found at www.gov.uk/tax-limited-company-gives-to-charity.)
Individuals, sole traders and partnerships can take advantage of other options such as Payroll Giving whereby donations are taken straight from wages or pension before tax is deducted from income. The amount of tax employees keep depends on the rate of tax they pay.
Here at BaP we endeavour to build personal relationships with our membership to ensure that businesses (i) contribute in a way that works for both parties (ii) are offered networking and professional development opportunities and (iii) are kept appraised through newsletters, social media and events about the charity’s operational projects supporting children, families and communities in the UK and overseas.
Companies that embrace involvement with charities reap rewards beyond simply the financial: at BaP there are opportunities for team-building events, an admired commitment to corporate social responsibility and marketing and profile-raising options. Our approach is non-prescriptive and we are always happy to discuss and test new ideas.
So as you plan for the 2015/6 tax year, take ten minutes to learn more about charitable giving and what it might mean for your company. If you would like to discuss new ways in which your company can get involved, contact Valerie Huxley at email@example.com.