Charity Donations, Gifting & Tax Benefits (UK Guide)

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Disclaimer: This article is general information for the UK and not tax, legal, or financial advice. Charity and tax rules can change and depend on personal circumstances—consider speaking to HMRC guidance and/or a qualified adviser before making significant donations, gifting assets, or setting up a charity.

Why people donate (and why it’s not the same as “investing”)

How giving can support a cause, reduce taxes, and help build a legacy, including the planned charity DisabilityUK.org

In the UK, most people donate to a charity rather than “invest” in it in the traditional sense. A registered charity exists to deliver public benefit, and it cannot distribute profits to private investors the way a normal business can.

That said, donors (individuals and companies) can often receive tax relief, and supporters can still “get involved” in meaningful, structured ways (governance, partnerships, mentoring, matched funding, corporate programmes, etc.).

The main UK tax benefits for donating to charity

A) Gift Aid (individual donors)

Gift Aid lets a charity reclaim basic rate tax on eligible donations, increasing the value of the donation at no extra cost to the donor. Higher-rate and additional-rate taxpayers can usually claim additional relief via Self Assessment (or sometimes via a PAYE tax code adjustment).

Example (simple):

• You donate £100 with Gift Aid → the charity can claim £25 from HMRC, so it receives £125.
• If you pay higher-rate tax, you may be able to claim extra relief (rules depend on your circumstances).

Important: You must have paid enough UK tax (income/capital gains) to cover the Gift Aid claim.

B) Payroll Giving (Give As You Earn)

Payroll Giving is a scheme where donations come straight from wages/pension before tax is deducted, so relief is given “at source”.
This is often attractive for regular donors because it’s simple and tax-effective.

C) Gifting shares, land, or property

Giving certain assets (like shares or land/property) to charity can be particularly tax-efficient:

• You generally don’t pay Capital Gains Tax on assets you give to charity.
• There may also be Income Tax relief available on qualifying gifts of shares/securities and certain transactions (the detailed rules matter).

Because the rules can get technical, donors usually take tax advice before gifting high-value assets.

D) Leaving a gift to charity in your Will (Inheritance Tax)

Charitable gifts in a Will are taken off the value of the estate before IHT is calculated, and if 10% or more of the net estate is left to charity, the IHT rate on the rest may be reduced from 40% to 36%.

“If an investor invested in your charity”, what tax benefits could they get?

It depends what “invested” means in practice:

Option 1: They donate (most common for charities)

If the supporter gives money as a donation:

• Individuals may benefit from Gift Aid (and potentially higher-rate/additional relief).
• Companies can usually reduce their Corporation Tax bill by deducting qualifying charitable donations from profits before tax.

Option 2: They provide assets (shares/land/property)

They may benefit from CGT advantages and other reliefs depending on how the gift is structured.

Option 3: Social investment (specialist area)

There used to be a specific relief called Social Investment Tax Relief (SITR), but it is not available for new investments made on or after 6 April 2023.

Social investment still exists as a concept, but the tax position depends on structure and current rules.

Setting up a charity (brief overview, England & Wales)

To set up a charity, you typically:

• Recruit trustees (often at least 3)
• Define charitable purposes and demonstrate public benefit
• Choose a legal structure (e.g., CIO, charitable company, etc.)
• Create a governing document
• Register if required (generally if income is £5,000+, or if it’s a CIO)

A CIO stands for Charitable Incorporated Organisation.

It’s a legal structure specifically created for charities in England & Wales. Think of it as a way for a charity to:

👉 Exist as its own legal entity
👉 Limit personal liability for trustees
👉 Avoid having to register both as a company and a charity

So instead of being registered with Companies House + Charity Commission, a CIO is registered only with the Charity Commission, which makes administration simpler.

In simple terms

A CIO means:

✅ The charity can sign contracts in its own name
✅ The charity can own property and assets itself
✅ Trustees usually aren’t personally liable for debts (unless misconduct)
✅ Only one regulator (Charity Commission)
✅ Designed for modern charities
✅ Easier reporting than a charitable company

It protects you and the trustees while allowing the charity to operate like a proper organisation.

Why many new charities choose a CIO

Compared to an unincorporated charity:

• Trustees aren’t personally on the hook financially
• It feels more “professional” to funders and partners
• Banks and grant bodies usually prefer it

Compared to a charitable company:

• Less paperwork
• No Companies House filings
• One annual return instead of two
• No directors/shareholders confusion

For something like DisabilityUK.org, with funding, trustees, grants, partnerships and public-facing work, a CIO is usually the cleanest and safest option.

Two types of CIO (quick overview)

Foundation CIO

• Trustees run everything
• No wider membership
• Faster to set up
• Good when founders want tighter governance

Association CIO

• Has members + trustees
• Members appoint trustees
• More democratic
• Slightly more complex

Most founder-led charities start as a Foundation CIO.

Why does this matter for DisabilityUK.org or your vision

Given DisabilityUK.org plans:

• Funding disabled start-ups
• Running skills programmes
• Building omnichannel platforms
• Working with donors and corporates
• Protecting trustees
• Scaling nationally

A CIO gives:

✔ Credibility
✔ Legal protection
✔ Operational flexibility
✔ Future funding compatibility

It’s basically the charity equivalent of setting up a limited company, but purpose-built for social impact.

Foundation CIO vs Association CIO (deeper explanation)

✅ Foundation CIO (most founder-led charities choose this)

Structure:

• Trustees run the charity
• No wider voting membership
• You control direction through the trustee board

Best when:

• You have a clear founder’s mission
• You don’t want political infighting
• You want faster decisions
• You’re building something strategic (like DisabilityUK)

Pros:
✔ Simpler governance
✔ Faster setup
✔ Less admin
✔ Stronger continuity of vision
✔ Easier for grants

Cons:

• Less democratic (but still accountable to the Charity Commission)

✅ Association CIO

Structure:

• Members + trustees
• Members vote on trustees and big decisions

Pros:

• More community ownership

Cons:

• Slower
• Risk of mission drift
• Can become political
• Harder to scale

Better for clubs or grassroots collectives.

Trustee Requirements (real-world version)

You normally need:

Minimum:

• 3 unrelated trustees
• Over 16
• Not disqualified

Trustees must:

• Act only in charity’s interest
• Protect beneficiaries
• Manage money responsibly
• Avoid conflicts
• File annual returns

They’re legally accountable.

In practice, good trustees bring:

• Finance
• Legal
• Health/disability lived experience
• Business/start-ups
• Safeguarding

I (editor) already cover vision + lived experience.

Setup Timeline (typical)

Week 1–2

• Choose CIO type
• Draft charitable purposes
• Recruit trustees

Week 3

• Complete Charity Commission application
• Upload governing document
• Trustee declarations

Week 4–10

• Charity Commission review
• Possible questions
• Registration approved

Usually 4–8 weeks if done cleanly.

Charity Banking

After approval:

You open a charity bank account.

Banks commonly used:

• CAF Bank
• Unity Trust
• Barclays Charity
• HSBC Community

They require:

• CIO registration number
• Governing document
• Trustee IDs
• Meeting minutes

Expect 2–4 weeks.

Grants + Donations in a CIO

Once registered, you can:

Accept:

✅ Donations
✅ Gift Aid
✅ Corporate funding
✅ Grants
✅ Asset gifts
✅ Legacies
✅ Payroll Giving

Apply for:

• National Lottery
• Local councils
• Trusts & Foundations
• Corporate CSR funds

You’ll also be able to:

• Register for Gift Aid
• Issue donation receipts
• Publish impact reports

Practical Structure for DisabilityUK.org and You

Here’s what makes sense given your ecosystem:

DisabilityUK.org (Foundation CIO)

Core charity:

Handles:

• Donations
• Grants
• Trustee governance
• Skills funding
• Start-up microgrants
• Return-to-work programmes

Omnichannel Network (your existing platforms)

Connected but separate:

• #disabledentrepreneur.uk
• #disabilityuk.co.uk
• #ocd.cymru)
• #germawarness.co.uk
• #cgtai.com (Cell Gene Therapy AI)
• #dyslexiaai.co.uk
• #genetherapyai.com
• #gpai.co.uk
• #ukwebsitedesigners.co.uk
• #cymrumarketing.com
• #cymrumarketing.co.uk
• #ukmarketresearch.co.uk
• #ucrights.com (& .co.uk)
• #cymrulaw.com (& co.uk)
• #cardiffsolicitors.co.uk
• Health topic hubs
• Social media
• Landing pages
• Articles
• Education resources

These act as:

👉 Outreach
👉 Education
👉 Community
👉 Referral pathways

Charity delivers support + funding
Your platforms deliver engagement + awareness

Clean separation. Very professional.

Proposed Funding Model

Proposed Charity will provide:

• Access To Bursaries
• Access to Grants
• Access to Legal Aid
• Access To Equipment Support
• Access To Training, Coaching & Mentorship

We will provide an ecosystem:

• Startup Support
• Website Design
• Market Research
• Marketing
• Advertising
• Publishing
• Lead Generation
• Networking
• Guidance
• Confidence building
• Law Department (Pro Bono)

This avoids conflicts and keeps the Charity Commission happy.

Governance Layer (important)

Suggested:

Trustees (legal control)

3–5 people:

• You (Founder Trustee)
• Finance trustee
• Health/disability trustee
• Business trustee

Advisory Board (non-legal)

No liability:

• Marketing: www.cymrumarketing.com
• Research: www.ukmarketresearch.co.uk
• Legal Advisers: (Pending)
• Health Professionals: (Pending)

Advisory boards give expertise without legal risk.

Why is this powerful

This gives you:

✔ Protection
✔ Credibility
✔ Funding eligibility
✔ Controlled growth
✔ Legacy building
✔ National scalability

This is how serious charities are built.

The vision for DisabilityUK.org

DisabilityUK.org (planned) is intended to be more than a website; it’s a mission-led charity designed to help people rebuild confidence, reclaim identity, and create meaning.

Founder’s mission (in plain terms)

To help disabled people and carers move from surviving to building:

• Purpose: Over-isolation
• Skills: Over stagnation
• Dignity and independence: Over barriers
• Legacies: Over short-term fixes

How DisabilityUK.org aims to help people leave legacies

Not everyone can leave wealth, but many can leave an impact: mentoring someone, building a small enterprise, learning a skill, publishing a story, volunteering, campaigning, or creating resources that outlive them.

What DisabilityUK.org plans to be part of (the “omnichannel” ecosystem)

DisabilityUK.org can sit at the centre of an omnichannel network, so support is reachable in the way people actually live online today.

Planned components could include:

• Main charity hub: DisabilityUK.org (guidance, eligibility signposting, rights education, support pathways)
• Business Building: (website design, market research, consulting, marketing, advertising, coaching)
• Health information sites & topic hubs (condition-specific explainers, coping tools, stigma reduction)
• Online community groups: peer support, founders circles, carers circles
• Social media pages: awareness campaigns, micro-guides, myth-busting
• Email lists & newsletters: “what’s changed” updates, opportunities, grants, work support
• Landing pages: focused help pages (e.g., “back to work with a disability”, “starting a micro-business”, “reasonable adjustments”)
• Webinars/workshops: skills, confidence, legal basics, digital literacy
• Partner directory: vetted services (legal, finance, mental health, accessibility, employability)
• Storytelling & publishing: lived experience stories to reduce stigma and help others feel less alone

Funding start-ups, return-to-work support, and learning new skills

A realistic charity model often blends grants + training + wraparound support. DisabilityUK.org’s approach could include:

• micro-grants for disabled founders (equipment, software, accessibility tools), partnerships with Banks
• training bursaries (digital skills, bookkeeping, marketing, confidence coaching), partnership with Universities
• supported self-employment pathways (mentoring, templates, compliance basics)
• “return to work” support (CV support, disclosure guidance, reasonable adjustments signposting)
• emergency bridging support (where lawful/appropriate) to prevent people falling out of work/education, partnership with Law Firms.

Key principle: funding without support can fail; support without resources can stall; the magic is in combining both.

Trustees: what the job really implies

Trustees share ultimate responsibility for governing the charity and directing how it’s run.

They must ensure the charity:

• pursues its purposes for public benefit
• complies with its governing document and the law
• acts in the charity’s best interests
• manages resources responsibly
• acts with reasonable care and skill
• is accountable and transparent

Trusteeship is meaningful, but it comes with real duties and personal responsibility.

How “investors” and supporters can get involved (practical list)

If someone wants to support DisabilityUK.org in a serious, “investor-like” way, they can do so through:

1. Major donation programme (one-off or multi-year giving)
2. Corporate partnership (annual commitment + shared outcomes)
3. Payroll Giving scheme for employees
4. Matched funding (match staff/public donations for campaigns)
5. Sponsor a pathway (e.g., “Back to Work bursaries” or “Start-up micro-grants”)
6. Donate assets (shares/land/property) where appropriate
7. Fund a specific project (training cohorts, accessible tech fund, mentoring network)
8. Pro bono support (legal, HR, marketing, design, accounting, accessibility audits)
9. Mentoring & employer links (work placements, disability-confident hiring, flexible roles)
10. Become a trustee (if eligible and suitable)
11. Join an advisory board (non-trustee governance support and expertise)
12. Commission research/sponsor reports (evidence-based policy + practical toolkits)

Get Involved with DisabilityUK.org

DisabilityUK.org is being built to empower disabled people, carers, and those facing barriers back into work or learning, helping individuals rediscover purpose, develop new skills, and create meaningful legacies.

Whether you are an individual donor, corporate partner, professional adviser, or simply someone who believes in inclusion and opportunity, there are many ways to get involved:

• Make a one-off or regular donation
• Become a corporate or payroll giving partner
• Sponsor a skills programme, start-up pathway, or return-to-work bursary
• Offer pro bono support (legal, finance, marketing, HR, accessibility)
• Volunteer as a mentor or adviser
• Express interest in trusteeship or advisory roles
• Help us expand our omnichannel network of health resources and community platforms

Together, we can build pathways into independence, confidence, and contribution, because everyone deserves the chance to thrive, not just survive.

Further Reading & Resources

• Tax when your limited company gives to charity: Overview – GOV.UK
• https://disabledentrepreneur.uk/press-release-uk-website-designers-proposed-charity-and-consulting-agency/
• https://disabledentrepreneur.uk/a-guide-to-setting-up-a-charity/
• https://disabledentrepreneur.uk/donate/
• https://disabledentrepreneur.uk/disabled-entrepreneur-disability-uk-investors-pitch/
• The Charity Commission – GOV.UK
• Search the register of charities
• About The Charity Commission – Charity Commission
• About the Charity Commission for England and Wales
• Set up a charity: Register your charity – GOV.UK

To explore trustee registration, partnerships, or support our mission, please contact us via our form below.

**DisabilityUK.org will be part of the omnichannel, including websites, domains, landing pages, and social media pages: #disabledentrepreneur.uk #disabilityuk.co.uk #ocd.cymru #germawarness.co.uk #cgtai.com (Cell Gene Therapy AI) #dyslexiaai.co.uk #genetherapyai.com #gpai.co.uk #ukwebsitedesigners.co.uk (Group) #cymrumarketing.com www.cymrumarketing.co.uk #ucrights.com (& .co.uk) #cymrulaw.com & (co.uk) #cardiffsolicitors.co.uk #ukmarketresearch.co.uk