Tax efficient giving

Tax-efficient giving can apply to Annual Fund and major gift donations. There are also inheritance tax benefits to leaving a legacy gift to LSE in your will, which you can read about on our legacy pages. Learn more about tax efficient giving from overseas.

Gift Aid

Applying Gift Aid to your gift allows LSE to claim an additional 25p for every £1 that you donate.

By signing a Gift Aid agreement the Donor(s) confirm(s) that they wish to treat this donation and any further donations they make to LSE as Gift Aid donations, and that they pay an amount of Income Tax and/or Capital Gains Tax that is at least equal to the amount that all charities they donate to will reclaim for that tax year. Council tax and VAT do not qualify and the Donor(s) understand(s) LSE will reclaim 25p on every £1 that they have given. The Donor(s) will notify LSE if their circumstances change and they no longer pay sufficient tax on their income and/or capital gains. The Donor(s) understand(s) that they can cancel this Gift Aid declaration at any time by notifying LSE.

More information about Gift Aid can be found on the HMRC Gift Aid page.


Share giving

A gift of shares can often be the most tax-efficient means of giving. Share gifts of any value to LSE are entirely exempt from Capital Gains Tax, while you will also receive Income Tax relief on the market value of the shares and any associated costs such as brokers’ fees. 

Example:

Gift of shares worth: £10,000
Income tax relief for higher rate tax payer (40%): £2,500
Cost to share-donor: £7,500
Value to LSE: £10,000 

For more detailed information on share giving, please visit the HMRC website. If you interested in making a gift of shares, please contact [email protected]

Give as You Earn (GAYE)

You can extend the reach of your support of LSE through the Give as You Earn (GAYE) scheme. It is completely tax free and allows an employee to give a regular or single gift from their income before tax is deducted.

Please complete this form, print it out and send it your human resources or payroll department. While we do not manage this process, if you email us at [email protected] once you have completed and sent your form, we will know to look out for it and acknowledge your gift as soon as we receive it.

This scheme means:

  • Gifts made through Payroll Giving are taken directly from the gross pay, giving the benefactor immediate tax relief at the highest rate of tax for which they qualify
  • For instance, every £10 you donate will only cost you £8 as you save £2 at the basic tax rate and higher tax rate payers will pay only £6
  • The School can better plan its activities sustainably, knowing the LSE Annual Fund is getting regular donations
  • You are better able to keep track of your giving

To make contributions to the LSE Annual Fund, the charity details for the GAYE form are:

Inland Revenue No. X2401

LSE Annual Fund
LSE Advancement
London School of Economics and Political Science
Houghton Street
London WC2A 2AE

We are very grateful for you choosing to donate tax-efficiently via payroll giving. As we use a third party (CAF) to process this, there may be a delay between you filling in the form and your donation coming out of your pay. There is also sometimes a delay of several weeks before the Annual Fund receives your donation once it is set up, but as soon as we receive the funds, we will write to acknowledge receipt and to thank you for your generous support.