Charitable Trusts
Charitable trusts offer a secure way of donating assets, no matter how large or small, to charity. This may either be done through a charitable trust which has already been set up or alternatively, you may wish to start up your own charitable trust. In some cases a charitable trust fund it set up after someones death as part of a will in which. Alternatively, you may have already been introduced to a specific charitable trust chosen by your employer through payroll giving; an automatic donation taken straight from your salary.
As the title suggests, a charitable trust is set up as a charity and therefore it is a much more tax-efficient way to donate. For instance, a charitable trust chosen by an employer will receive its money tax-free either through payroll giving or gift aid where your employer must match your donation to the fund.
However, setting up your own charitable fund means that you can decide exactly how much and which charity or charities your assets and /or income will be donated to. There is no need for a large deposit to set up a charitable trust and it is usually started with a lump sum from an investment return, inheritance or bonus. Starting your own fund also means that you may enlist others to donate to your chosen charities either through one off donations or by payroll giving. Another major advantage is that your assets given to charitable trusts are subject to tax relief and you will not be required to pay tax on any investment income.
If you would like more information on charitable trusts see our page on charitable trust funds. Alternatively, speak to an independent financial advisor to decide whether a charitable trust fund is a viable option of charitable giving for you:
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