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• The value of Share Giving
• How does Share Giving work
• Do we need a policy on what shares to accept as a donation?
• What is a Share Certificate
• What is a Stock Transfer Form
• Promoting Share Giving - FREE downloads
• Further Information |
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One of the best-kept secrets in fundraising...giving shares can cost donors less than giving cash!
With our information and advice, you will find it is not as complicated as you may think. The average share donation is £7,000 and more than 11 million people own shares
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When donors give shares to a charity they can get substantial relief on their income tax bill, as well as exemption from Capital Gains Tax (CGT) on any gains they may have made on the shares. With the higher rate of income tax
at 40% and capital gains tax at 18%, this can amount to a substantial tax break. As with Payroll Giving, all the tax relief goes to the donor.
While fundraisers do not need to be experts on shares or tax relief, it is a good idea for you to understand the basics. There are two types of tax relief available to donors who give shares: income tax relief on the value of the shares and exemption from Capital Gains Tax. It is the donor's responsibility to keep adequate records to enable them to claim their tax relief and to work out how much relief they are entitled to. Donors should claim their tax relief by completing the appropriate section of their tax return. If they are not sent a tax return or if they want to claim relief before the end of the tax year, they should contact their tax office for advice.
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A charity should have a firmly established policy prior to embarking upon a campaign to solicit shares. For guidance on writing a policy, see the Institute of Fundraising's Code 'Acceptance and Refusal of Donations'.
This policy should cover two main areas:
1. Your charity's purpose and accepting certain types of company shares.
Should your organisation accept a donation of shares in all companies ? For example, some charities do not accept donations of shares in tobacco companies.
2. The practical considerations of accepting shares as a donation.
While 11 million people are shareholders, the size of their holdings will vary. The transfer and sale of shares under a certain value may be uneconomical for the charity once brokers fees and administrative costs are taken into account.
ShareGift specialises in accepting small holdings of shares, and also helps people with larger gifts of shares for their favourite charities. ShareGift works with companies, stockbrokers, charities and other organisations across the UK to help with share donations.
www.sharegift.org
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The share certificate is a valuable document. It is the title to the property, (shares) much like a deed to a house. The most important information contained on the share certificate is the name of the undertaking (company which the shares are part of), number of shares, and the name of the owner of the shares.
It is important to note that the value written on the share certificate is not the actual value of the shares. Share prices, like house prices, go up and down. The amount of tax relief available will depend on the value of the shares when the donor acquired the shares and how much they are worth on the date of transfer. It is important to get advice on this area. Remember: Don't give financial or legal advice to donors.
Please see the specimen forms for an example.
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The Stock Transfer form need not be intimidating. It is simply a form that enables the Registrar of the shares, like the Land Registry, only for stocks instead of houses, to transfer the shares from the donor to your organisation.
It is likely that a donors who are in a position to give a substantial amount of shares, will be aware of how to correctly complete this form, or have financial advisers who can do it on their behalf.
However, charities should be familiar with the key points of this form. While Stock Transfer Forms will vary in appearance, there will be certain mandatory information that all forms will contain.
Please see the specimen forms for an example.
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In order to realise the potential of Share Giving, it is vital to communicate it's benefits to your donors, and build awareness within your organisation.
Our downloads page will help you get the message out about Share Giving and also contains these useful newsletter and press release templates".
Share Giving Template Article
Tailor this article to your charity and include it in your next newsletter to donors.
Share Giving Template Press Release
Promote your Share Giving success by tailor this release to your charity and sending it out to your local press.
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Find out how one smaller charity has succeeded in increasing their income through Share Giving by downloading this Case Study.
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