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Donate unwanted shares to charity and reap the rewards |
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Score
82%
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21 votes,
Feasibility
84%
Originality
77%
Humour
7% |
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The Giving Campaign, a new independent organisation set up in the UK who are supported by the Government, encourages people to donate unwanted shares to the charity of their choice. The organisation's goals include increasing "the amount of money given to UK charities; and, in the long term, to encourage a culture of giving where it is thought natural for everyone able to do so to give money and time to improve the quality of life for others."
Many people in the UK have received minute amounts of shares from mergers, privatisations and other 'free' share handouts. The cost of selling these small numbers of shares is often as great as the value of the shares themselves, and they can be more bother than they are worth when it comes to filling out tax assessment forms and the like. Charities, on the other hand, can sell the shares at much lower rates and receive the benefit of 28 per cent Gift Aid on top. And the donor can claim tax relief equal to the market value of the shares on the day the gift is made, together with any associated costs.
The Giving Campaign has several goals:
Highlighting the opportunities for increased giving presented by the new tax regime launched in the 2000 Budget, such as learning about Gift Aid, for example, and how that can work for them.
Promoting planned giving as an aspect financial planning, educating donors on how to donate shares to charities and make better use of legacies and trusts.
Influencing employers to develop strategies for giving by employees, such as through Payroll Giving. (It has been estimated that only 2% of employees and 1% of UK firms participate in Payroll Giving compared with 25% and 35% in the USA!)
Exploring ways to encourage giving by young people because lasting cultural change must focus on the habits and attitudes of young people.
"Any shares left to charities in wills avoid inheritance tax"
It is hoped that, as well as those with small holdings, larger investors will participate in the scheme, either for ethical reasons or to avoid capital gains tax (which can be as much as 40 per cent). Any shares left to charities in wills also avoid inheritance tax, making them a very sensible way of leaving a legacy. The Giving Campaign estimates that two-thirds of the 12 million shareholders in the country did nothing with their shares in 2001: even if only a small proportion of those were to donate some shares in 2002, the effect will be substantial.
Summarised from an article by Tony Levene, entitled ‘Why not share in the giving’, in the Guardian Jobs and Money section (March 2nd 2002). Information has also been gathered from the Giving Campaign website (www.givingcampaign.org.uk) and ShareGift (www.sharegift.org).
Pooling small share bundles
Summarised from an article by Fran Littlewood in The Times (August 4th 2001).
Sharegift is a share donation scheme based on the premise that all around the UK there are shareholders who are sitting on small, unwanted piles of shares. Many people have or inherit small handfuls of shares that can be more of a nuisance than anything else, whilst others regard constant correspondence regarding their shares as nothing more than junk mail or a stream of unwanted documentation. For the elderly, and those with little financial experience, it can be bewildering and upsetting.
"ËœThey wait to amass a certain number of shares before cashing them"
Shares of a total value that is less than twenty pounds are rarely much by the time you have paid the brokers chargers and paid a capital gain. Instead, Sharegift will wait until they have amassed a certain amount to cash them, and the proceeds are donated to charity. Masterminded by Viscountess Mackintosh, this scheme charges no cover costs and, furthermore, allows the donors to claim income tax relief on the value of the donations.
For more information on the Giving Campaign, visit www.givingcampaign.org and
Sharegift can be contacted by 020 7337 0551 or www.sharegift.org
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