How To Give More To Your Favourite Charities

How To Give More To Your Favourite Charities

There are many good causes and charities we all have our favourite good causes we like to support.  In this article we explain a couple of ways in which you could use yewtrade to increase the amount of good your donations can do.

Charitable gifts of money made to a charity by your company should be paid gross before tax is deducted.  These donations are deductible from the total profits of your business when calculating Corporation Tax. The charity doesn't need to make a Gift Aid tax repayment claim because no tax has been paid.  The charity can claim exemption from tax on company donations.

 

Therefore, a donation of £100 to a charity costs your company £75.  This donation comes out of your existing cash business.  No doubt the charity will be grateful for the donation but using Yewtrade as a mechanism for your charitable donation can give the charity more bang for their buck.

 

In the case of a hairdresser that provides haircuts for £10 at a cost to the hairdresser of £2; the cost of the yewtrade pound (Yew(¥)) is 20p.  So a donation of ¥100 to a charity costs £20 plus the 5% commission making the total cost £25.  This is 4 times cheaper for the business allowing them to donate up to 4 times more to their favourite charity.  This money was generated by utilising some of your spare capacity and as such you still have several other benefits from the trade including the extra word of mouth referrals from the extra new customers.

 

Since Yews are treated the same as cash for tax purposes a donation of ¥400 to the charity still ultimately costs the business £75 after the cost of the donation has been deducted from the Corporation Tax bill.

 

In this example, the charity will receive ¥400 which they can then use to purchase goods and services they would normally have paid cash for.  So the charity will conserve £400 in its bank account that it can use towards the cause it was set up for.

 

yewtrade also contributes by opening a special charity account for the charity.   Charity accounts have no monthly or transaction fees and are thus completely free for the charity.  Charities do not need to pay a 5% commission on their purchases.

 

Another way to raise cash for charity would be for your company to host a charitable function.  If your business wanted to hold a charity dinner at a local restaurant in aid of your favourite charity and your company’s Yews cost 20p.  One easy method for you to raise money would be to pay for the entire restaurant bill on yewtrade.  If the bill came to £1000 you would settle the bill with ¥1000 that cost you £200 plus the 5% fee making a total of £250.  If everybody that came had a half-price dinner you would collect £500 from the attendees.  You could then cover your costs of £250 and donate the difference, which in this case is also £250 to the charitable cause.  In this scenario, the charity is happy as they have received a generous £250 donation and the attendees are happy because they had a half-price meal, a good time and know that the evening generated money for the charity.  The restaurant is happy because they have utilised some of their spare capacity and created a number of potential return cash-paying customers.  The evening has not cost your business anything and it has done a good deed.