Tax efficient giving
Tax-efficient giving can apply to both regular unrestricted gifts and major gift donations. There are also inheritance tax benefits to leaving a legacy gift to LSE in your will.
Gift Aid is a government scheme which allows LSE to claim an additional 25p for every £1 that you donate at no extra cost to you.
You are eligible to apply Gift Aid to your donation if you are a UK taxpayer. However, you must ensure that what you pay in income and capital gains tax at least equals the amount that we (and all other charities) will claim against your donations in that tax year.
If you are a higher-rate taxpayer, you can claim the difference between the lower rate tax (which we claim) and the higher rate of tax (that you have paid). This means it costs you less for your gift to have more impact. You can claim this tax relief in your self-assessment tax return.
In order to claim Gift Aid on your donation we require you to complete a Gift Aid declaration. This declaration is valid for all future gifts until you inform us otherwise, and any gifts made in the last four years – unless you specify a more recent start date. It is your responsibility to inform us if your circumstances change and you no longer pay sufficient tax to cover the Gift Aid. You can cancel your Gift Aid declaration at any time. The easiest way to submit a declaration is through our online donation form.
More information about Gift Aid can be found on the HMRC Gift Aid page.
You can calculate the value of Gift Aid on your gift through the online Gift Aid calculator.
Another way in which you can extend the reach of your support of LSE is through the Give as You Earn (GAYE) scheme. It is completely tax free and allows an employee to give a regular or single gift from their salary before tax is deducted to the charities of their choice.
Please complete this form, print it out and send it to your human resources or payroll department.
This scheme means:
- Gifts made through Payroll Giving are taken directly from the gross pay, giving the benefactor immediate tax relief at the highest rate of tax for which they qualify
- For instance, every £10 you donate will only cost you £8 as you save £2 at the basic tax rate and £6 higher tax rate payers
- The School can better plan its activities sustainably, knowing the LSE is getting regular donations
- You are better able to keep track of your giving
To make contributions to LSE , the charity details for the GAYE form are as follows:
Commission number: HMRC No. X2401
LSE Philanthropy and Global Engagement
London School of Economics and Political Science
London WC2A 2AE
As we use a third party (CAF) to process this, there may be a delay between you filling in the form and your donation coming out of your pay. There is also sometimes a delay of several weeks before LSE Philanthropy and Global Engagement receives your donation once it is set up, but as soon as we receive the funds, we will write to acknowledge receipt and to thank you for your generous support.
A gift of shares can often be the most tax-efficient means of giving. Share gifts of any value to LSE are entirely exempt from Capital Gains Tax, while you will also receive Income Tax relief on the market value of the shares and any associated costs such as brokers’ fees.
Gift of shares worth: £10,000
Income tax relief for higher rate tax payer (40%): £2,500
Cost to share-donor: £7,500
Value to LSE: £10,000
For more detailed information on share giving, please visit the HMRC website. If you interested in making a gift of shares, please contact LSE Philanthropy and Global Engagement through the details found on the left of this page.
In the UK gifts to charity are exempt from inheritance tax (IHT).
Estates that are liable to pay IHT can reduce their tax bill by leaving 10 per cent or more of their net estate to charity. The HM Revenue and Customs website provides detailed information for calculating your potential tax liability.
Your solicitor can advise further on Inheritance Tax.
There are opportunities in most European countries to make a tax-efficient gift through Transnational Giving Europe (TGE).
This enables donors in one of the participating countries to support LSE, whilst benefitting from local tax efficient schemes.
LSE is a university prescribed by Canada Revenue Agency as a charitable organisation outside Canada entitled to issue donation receipts. If you choose to give to LSE, you can make your donation online. Alternatively, you can also make your gift by sending a cheque, payable to LSE, to the address below. We will issue you with a receipt for tax purposes within ten working days.
LSE Philanthropy and Global Engagement,
LSE, Houghton Street,
Alumni living in Germany can make tax efficient gifts to LSE through the German Friends of LSE through PayPal or Electronic Funds Transfer.
Please provide your name and address so that the German Friends of LSE can issue a donation receipt.
Gifts made by Electronic Funds Transfer should be made to:
Deutsche Bank AG, Dusseldorf,
Kontonummer: 612 0182 00
IBAN: DE57 3007 0024 0612 0182 00
Bankleitzahl: 300 700 24
German Friends of LSE Address:
Freunde der London School of Economics and Political Science e.V.,
c/o Pia Wagner Siegener Straße 865627 Elbtal,