Charities and Lump Sum Donations
The Lump Sum Donation Scheme
If you give money to a charity using the Lump Sum Donation scheme the charity can benefit from special tax rules and get an additional 25% of the lump sum given. For example:
- you give £800 to a local charity
- this is treated as a gross payment of £1,000 less £200 tax (at 20p in the £) the charity, being exempt from income tax
- They can claim the tax of £200 so your donation of £800 is worth £1,000 to the charity
There are a number of rules that apply to the way the donation is made before this benefit can be given.
For details see Making a Donation.
The website also gives information about the effect of the Lump Sum Donation Scheme rules if you are :
- giving lump sum donations through payroll
- paying money to charity when you don’t pay income tax
- holding events to raise money, collections and sponsorships
- a trust, estate or partnership
For more information contact
Customer and Local Services, Phillip Le Feuvre House, La Motte Street, St Helier, Jersey, JE4 8PE