Make the most of your gift to charity

Charity cards are as much a part of Christmas as turkey and presents, but not all retailers extend the festive spirit to good causes. The worst hand over a miserly 6 per cent of their sale price, according to research from Which?

The study found that the average amount earned by charities was 13 per cent, although some shops handed over considerably more. WH Smith gave 100 per cent of the proceeds of one particular pack to Children in Need.

But buying cards – and giving donations – is still an important way to help charities, many of which have been badly hit by the credit crunch, according to Louise Richards, director of policy and campaigns at the Institute of Fundraising.

"UK charities are in need of funding to ensure they can continue providing services for the beneficiaries they exist to support," she says. "Some charities see higher levels of giving at Christmas and rely on people's generosity at this time of year."

There are three main ways to make a difference: giving donations of money and unwanted goods; volunteering your time; and buying Christmas gifts which will benefit particular causes.

Giving donations: There are plenty of ways to maximise a financial gift to charity.

*Gift aid

If you are a UK taxpayer and want to give a donation then make sure it benefits from Gift Aid, which is a tax break that increases the value of your donation – and doesn't cost you more. All it takes is for you to sign a declaration form.

A combination of being able to reclaim tax on the gross equivalent of the donation and the Government giving extra cash (until April 5, 2011) to make up for the recent fall in basic rate tax means every £1 donated will be worth £1.28 to the charity. In addition, higher rate taxpayers can also donate the difference between the standard and higher rates, meaning their £1 donation could actually be worth £1.60.

*Payroll Giving

Payroll Giving that enables donors to make charitable donations straight from their gross salary (before tax has been deducted). For example, if a basic rate taxpayer wants to give a £10 donation, it will cost only £8, or just £6 for higher rate taxpayers. Employees ask their payroll department to deduct regular charitable donations from their gross pay. The company then passes that money to their chosen Payroll Giving agency, which forward the donations to the nominated charities.

*Charity accounts

If you want to regularly give money to a variety of charities then consider opening a Charities Aid Foundation (CAF) Charity Account. It works in the same way as a current account, but only holds funds you have put aside for donating. As CAF is a registered charity it reclaims the basic rate tax on all the money you put into your account and adds it to your balance – less a fee to cover its costs – so you won't have to sign separate Gift Aid declarations.

*Go online

There are now a number of websites providing links to good causes to which you can donate. Justgiving.com, for example, has helped more than 8,000 charities raise £450m. Even auction sites such as eBay enable you to donate a percentage from the sale of goods to the charity of your choice. Gift Aid can also be added to the equation, while fees will be re-credited, depending on the level of donation. More recently, a number of charities have opened their own online shops.

*Charity shops

Visit the Association of Charity Shops' website – ( www.charityshops.org.uk ) to find those near you. Anything can be donated but make sure it's not broken and, where possible, take it in yourself rather than the charity paying for its collection. It has been a tough couple of years on the high street and shops run by large and small charities have struggled. Earlier this year Oxfam announced a 12 per cent fall in the number of donations received – the first such drop in eight years.

*Leave a legacy

A legacy allows people to leave something for a good cause. Free of inheritance tax, it can be a gift of money or other assets. There are two main types: pecuniary and residuary. Pecuniary legacies specify a sum of money or item of value to be donated, while a residuary legacy allows someone to donate the remainder of an estate. Visit Remember A Charity www.rememberacharity.org.uk for more information.

Volunteering

Your time can be as valuable as any donation but you need to sign up quickly as places fill up fast, says Helen Walker, chief executive of TimeBank ( www.timebank.org.uk ), the national charity inspiring people to volunteer.

"You could host an overseas student so they don't spend Christmas Day alone; go on a volunteering holiday to give disabled people and their carers a break; send Christmas cards to prisoners; or help in a homeless shelter."

Charity gifts

Why not buy a charity-inspired gift for a loved one? The Barby Keel Animal Sanctuary in Sidley, East Sussex offers the chance to sponsor one of its residents, which include dogs, cats, horses, pigs, chickens and birds.

The charity, which has cared for unwanted, hungry, abandoned or neglected animals for almost 40 years, has put full details up of its offer on its website www.barby-keel-animal-sanctuary.btik.com .

Another fantastic resource is Good Gifts ( www.goodgifts.org ) which has a huge array of virtual present ideas. A donation of £5 is enough to supply a locally made umbrella to protect someone from the monsoons, while £10 pays for life-saving medicines. Those with more to spend might help save the Indian tiger at a cost of £50 or provide a travelling library for £100. At the other end of the scale is an opportunity to buy an acre of greenbelt for £5,000.

People might also like to consider buying gifts on charity credit cards, suggests Peter Harrison at moneysupermarket.com, as most will give the cause a one-off payment when a card is taken out and then a percentage of amounts spent on it. The British Heart Foundation credit card provided by MBNA gives £50 for each successful application, and then 35p per £100 spent.

There are also charity-linked savings accounts which offer a percentage of interest to a particular cause. But, not all accounts are the same, so shop around.

Inspired by tragedy: Bob Wilson's Willow Foundation

Former professional footballer and TV presenter Bob Wilson and his wife Megs were inspired to establish the Willow Foundation by the bravery of their daughter, Anna, during her five-year battle with cancer.

"She always wanted something in her diary to look forward to, such as going to see Take That in concert," Bob recalls. "Her excitement leading up to one of these special days masked her symptoms and the day itself was a total adrenaline rush."

Perhaps the most poignant of days was when the BBC sprung a This is Your Life special on Bob, who had not only forged a career as an Arsenal goal-keeping star, but also as a well-respected host of football programmes.

"Anna probably realised it would be the last time she'd see all her family and close friends but she was just flying for days afterwards," says Bob. "For us, it illustrated the value of having something to look forward to when you're seriously ill."

Anna died four weeks after the programme was recorded – on 1 December, 1998, six days before her 32nd birthday. The following year, her family, including her husband, Mitchell, and brothers, John and Robert, launched The Willow Foundation to provide special days out for 16- to 40-year-olds suffering from life-threatening illnesses.

Since then, the foundation has raised almost £15m and provided 6,000 days out, with more than 100 of them being organised every month. They have included sky dives, trips to Alton Towers, meeting celebrities and even complete wedding services.

Unfortunately, the charity has not been immune from the effects of the global downturn with donations down by almost £500,000, but Bob hopes that more money will come its way as the economy improves. "Our ultimate vision would be to provide a special day for every seriously ill young adult in the UK," he says. "There might be a lot wrong with this country but we have found that this is as generous a country as you'll find."

Visit the Willow Foundation website ( www.willowfoundation.org.uk) to find out more or buy from their extensive range of personalised Christmas cards and gifts, including books and prints.