Supporting Giving - Perfect Pitch Session 2

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Supporting Giving - Perfect PitchSession 2

• Andy Jones

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Building on the basics

• Refresh
• Youve got the donor to part with money.
• They have completed a declaration.
• You have started claiming the tax back.
• What else can we do?

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Increasing the value of donations

• You can either
• Get more of the same - build up small donation
  levels (broaden your market)
• Increase the size of donations. (focus on high
  wealth donors)

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Higher Rate taxpayers - incentivised giving

• Aim high-
• Donation of 1,000 gives charity 282.00
• HR donor gets 18 relief on 1,282 230.76
• Net cost of donation 769.24
• Tax support valued at 282 230.76 512.76
• Generous support?

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How do you spot a Higher Rate taxpayer?

• A HR donor has specific identifiable markings.
• Someone who earns (after tax allowances)
• 32,400 (for 2005/2006)
• Equals Gross income of approx 38,000 (37,295)
• Marketing can be specific
• By employers/employees type
• Through accountants and tax advisers.
• Some are less easy to spot - asset rich.

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Whats the HR hunting season?

• It is open season on HR donors and they can be
  hunted all year round.
• They are particularly vulnerable at certain times
  of the year
• September, and
• late January (tax filing season).

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What are the advantages of these seasons?

• Tax planning is an important part of self
  assessment.
• If you file a return before 31 January you can
  carry back the relief on the gift aid donation to
  the previous year.
• That means that you can be very precise about it.
• If it creates a tax repayment you can also gift
  aid that.

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The clock is ticking

• Charity is a company with account year ending
• 31 May 31 December
• 1st APE after April 2000
• 31 May 2000 31 December 2001
• Claim must be made by
• 31 May 2006 (already out) 31 December 2006

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Supporting Giving - contacting HMRC

• Telephone [phone]
• Email charities_at_hmrc.gov.uk
• Come and see me.