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Opinion
Stuart Trow

A Charitable Way to Beat Taxes in the Afterlife

Donors are missing out on tax breaks for their charitable contributions.

Uncle Pennybags may be missing a charity tax trick.

Uncle Pennybags may be missing a charity tax trick.

Photographer: Chris J. Ratcliffe/Bloomberg

COVID-19 has been a catalyst for change in many aspects of our lives, not least the migration to flexible working, which would have taken many more years without the pandemic’s brutal intervention. It has also changed the landscape for charitable donations. Immediately prior to the outbreak, a little more than half of all donations took the form of notes and coins. By May 2020, this had dropped to just 9%.

Capturing a greater proportion of donations electronically in theory makes it easier for donors and charities alike to benefit from tax relief. Even so, UK charities are missing out on more than 560 million pounds ($700 million) of potential tax relief every year. And many donors are not aware that they could also benefit.