The best way to give to charity
The same gift can cost you very different amounts depending on how you give it. See what the charity gets and what each way really costs you.
Your answer
Enter the amount you want to give and your income to compare the ways to give it.
About this calculator
For anyone thinking about a gift to a UK charity. It compares giving the same amount as cash with Gift Aid, through payroll giving, as shares or land that have grown, through your own company, and in your will.
For each it shows what the charity receives, what it really costs after tax relief, and the cost of each £1 the charity gets, cheapest first.
What happens to your answers
We don’t keep them. Your answers go to our server to do the sums and aren’t stored or logged. If you copy a link to your answers, they’re in the link itself, so only share it with people you trust.
How it’s worked out
Gift Aid: the charity claims 25p for each £1 you give, and if you pay tax above the basic rate you claim the difference back. Gift Aid only covers gifts up to 4 times the income tax you pay, so we Gift Aid that much and treat the rest as a plain gift. Payroll giving: the gift comes out of your pay before income tax, so the saving is the tax on that slice of pay. At the same top rate of tax the two cost the same for each £1 the charity gets; we list Gift Aid first because it needs no employer scheme.
Shares or land: you take their value off your income for income tax, and there's no Capital Gains Tax on the gain. We count the Capital Gains Tax you'd pay if you sold that part to give cash instead, assuming your tax-free amount for gains is unused.
Through your company: the company takes the gift off its profit before Corporation Tax, up to the profit. That's company money, which hasn't had dividend tax on it, so we show it but don't rank it with your own money. In your will: the gift is free of inheritance tax, so at 40% each £1 costs your family about 60p, and 10% or more to charity can cut the rate on the rest to 36%.
Worked example
Shares or land is the cheapest way: the charity gets £5,000 and it costs you £2,760, 55p for each £1.
2026/27 tax year · England · income £70,000 taxed like pay · CGT tax-free amount unused · shares would otherwise be sold · UK registered charity
| The amount you want to give | £5,000 |
|---|---|
| Shares or land: you give £5,000 of them and the charity gets | £5,000 |
| Shares or land: income tax relief on the value (taken off your income) | £2,000 |
| Shares or land: gain on that slice £4,000, £1,000 after the £3,000 tax-free amount: Capital Gains Tax you'd pay if you sold it instead | £240 |
| Shares or land: real cost to you (55p for each £1 the charity gets) | £2,760 |
| Cash with Gift Aid: the charity claims 25p for each £1 and gets | £6,250 |
| Cash with Gift Aid: tax you get back above the basic rate | £1,250 |
| Cash with Gift Aid: real cost to you (60p for each £1 the charity gets) | £3,750 |
| Payroll giving: £5,000 taken from your pay before income tax, the charity gets | £5,000 |
| Payroll giving: income tax you don't pay | £2,000 |
| Payroll giving: real cost to you (60p for each £1 the charity gets) | £3,000 |
| In your will: free of inheritance tax, so if your estate pays it at 40%, the gift costs your family about | £3,000 |
Worked out using HMRC's published rates for the 2026/27 tax year (6 April 2026 to 5 April 2027), on a yearly basis.
Questions people ask
Why does giving shares cost less than giving cash?
You get income tax relief on the full value of the shares, just as you would on cash, and you never pay Capital Gains Tax on their growth. If you'd otherwise sell them to give the cash, that tax is saved too.
Is Gift Aid or payroll giving better?
At the same rate of tax they cost you the same for each £1 the charity gets. With Gift Aid, the charity gets 25% more for the same money from you, but if you pay higher-rate tax you need to claim your share back.
Should my company give instead of me?
Often, if you'd otherwise take the money out as dividends: the company saves Corporation Tax and you avoid dividend tax on it. The gift can't be a dividend, and shares in your own company don't count. Talk to us before you decide.
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