WightAid is well known for donating hundreds of thousands of pounds to Isle of Wight good causes, but now it is asking the businesses who help them channel funds to those in need to think smarter and maximise their giving at no extra cost to themselves.
WightAid donates funding directly into hundreds of small charities and community groups which support vulnerable people, strengthening local networks, and enriching lives every day.
But it says that businesses may not realise is that charitable giving is not only good for the community – it can also be tax-efficient.
At the end of their financial year, many businesses are reviewing their accounts and looking for smart ways to maximise efficiency.
WightAid says that is also the perfect moment to make a meaningful local impact.
Donations made before the close of the tax year can normally be deducted from a company’s taxable profits.
A limited company’s corporation tax marginal rate will currently be between 19% – 26.5% depending on the level of profits and numbers of associated companies.
For example:
- £500 donation – and company profits (no associated companies) less than £50k.
A £500 contribution to WightAid could reduce your taxable profits, and a tax saving of 19% – £95, making the net cost of your donation just £405. - £1,000 donation – company profits above £250k.
A £1,000 donation could reduce your taxable profits, and a tax saving of 25% – £250, so your support to local charities effectively costs your business £750. - £5,000 donation – company profits between £50k and £250k
A £5,000 donation could reduce your tax bill by up to £1,325, bringing the net cost down to £3,675.
All of the above would deliver a significant boost to community projects.
If you are in business as a sole trader or partnership and pay tax at least equal to that of your donation, then your donation may qualify for Gift Aid, meaning Wight Aid can claim 25% of the value of your net donation.
If you are a higher rate or additional rate taxpayer, then by putting that donation on your personal tax return form, you can claim an additional 25% of the net donation as higher rate relief.
So a £1,000 donation, could mean £1,250 for the community, and a possible further £250 higher rate tax saving.
Geoff Underwood, founder of WightAid, said:
“By partnering with us, your donation doesn’t just go to one cause – it’s distributed to where it’s needed most.
“At the same time, this can help your business demonstrate strong social responsibility, strengthen its local reputation, and engaging positively with the Island community.
“Now is the ideal time to act! Whether you choose to give £500 or £5,000, your support will make a real difference – and your business can benefit too.”
If you’d like to learn more about making a donation or becoming a WightAid partner, contact [email protected] or call 01983 555915
