Charity No. 1078183
Covenants and Direct Debits
Covenants
A covenant to charity is essentially a written agreement to donate a fixed sum of money over a period of at least four years. Provided that throughout this time either you, or your spouse, pays income tax, the Inland Revenue will add to your gift. They will refund, to the charity, all the basic rate tax you paid on the money being donated.
This increases the value of the donation by approxi¬mately 43 per cent.
Out of £100 earned by a basic rate taxpayer, the Inland Revenue will take £30, leaving £70 net income. If this £70 is covenanted to charity, the Revenue will also “donate” the £30 it took, and whereas this represented Just 30 per cent of £100, it is, of course, 43 per cent of £70.
The tax-man is even more magnanimous if you happen to pay tax, inclusive of any investment income surcharge, in a bracket higher than the 30 per cent basic rate. Provided you declare covenanted giving when filling in your annual tax return form, the difference between basic rate taxation and your higher rate will be refunded to you personally.
Direct Debit
If you would like to set up a direct debit to LINC please fill out the standing order form by clicking on the link and send it to the address below.
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