Leaving a Lasting Legacy

At Lincolnshire Community Foundation, we’re deeply honoured to work with individuals who wish to make a lasting difference. By including a legacy in your will, you can help ensure a brighter, more resilient Lincolnshire for future generations. Whatever the size of your contribution, your legacy can bring life-changing support to those in need and strengthen the causes that matter most to you. We work closely with you and your professional advisors to set up a fund in your will, tailored to meet your specific wishes.

Ways to Leave a Legacy

Leaving a legacy can take different forms depending on what best aligns with your personal circumstances and wishes. Here are some of the ways you can make a lasting impact:

Pecuniary Gift
A pecuniary gift is a set amount of money left to Lincolnshire Community Foundation. This type of gift is straightforward to arrange and can be adjusted if your financial situation changes over time. Pecuniary gifts are flexible and can be directed toward a specific fund, cause, or programme to support work in areas you feel passionate about.
Specific Gift
With a specific gift, you may choose to leave an item of value such as shares, personal collections, property, or other assets. Donating specific items offers a way to turn assets into meaningful resources for your community. These items can be used or sold by the foundation, with the proceeds going directly toward supporting vital projects in Lincolnshire.
Residuary Gift
A residuary gift is a share or the entirety of what remains of your estate once any pecuniary gifts, specific gifts, and expenses are covered. This can be a convenient and effective way to make a significant contribution without needing to specify an amount upfront. A residuary gift can be allocated to help fund community programmes, charitable initiatives, or an area of need you feel strongly about.
Reversionary Gift
This option allows you to first provide for loved ones while still planning a future gift to Lincolnshire Community Foundation. With a reversionary gift, you can set aside assets to benefit family members during their lifetime, with the remaining assets transferring to the foundation upon their passing. This way, you can continue supporting your loved ones while also leaving a long-term legacy that enhances your community.

Why Leave a Legacy?

Including a legacy in your will is a powerful way to make a positive, long-term impact. Your support can fund local initiatives, sustain social projects, and help those facing difficult times. No matter how large or small, every legacy brings invaluable resources that help us build a stronger Lincolnshire.

Making or updating your will doesn’t need to be complicated or costly. We strongly recommend seeking legal advice to ensure that your wishes are clear and correctly represented. Your solicitor can help with drafting and the correct execution of a will or codicil.

Tax-efficient giving tips

Gift Aid

By making a Gift Aid donation, charities can receive extra funds without any additional cost to you as a UK taxpayer. The donation is treated as if basic rate income tax had already been deducted, allowing the charity to reclaim that tax from HM Revenue & Customs (HMRC). For example, a donation of £10,000 with Gift Aid allows the charity to claim an additional £2,500, meaning the charity receives £12,500 in total.

Tax Relief for Higher Rate Taxpayers

Higher rate taxpayers can claim back the difference between the higher rates of tax (40% or 45%) and the basic rate (20%) on the total donation value. For example, a 40% taxpayer donating £10,000 can reclaim £2,500, meaning the net cost to the donor is £7,500, while the charity still receives £12,500.

Self-Assessment Giving

If you complete a Self-Assessment tax return and are due a repayment from HM Revenue & Customs (HMRC), you can choose to donate some or all of that refund directly to charity through the SA Donate scheme. This allows taxpayers to support charitable causes as part of the tax return process. The donation is made from the repayment owed to you, making it a simple and tax-efficient way to give while completing your annual tax return.

Payroll Giving

Contributions to charity through Payroll Giving can be made in any amount and are taken directly from your salary before tax is deducted. Because donations are made from your gross pay, the amount of tax you pay is reduced. This provides a simple and tax-efficient way to give regularly through your employment.

Giving in Your Will

Leaving a gift to charity in your will can reduce the Inheritance Tax due on your estate. You can choose to leave a fixed amount, a specific item such as shares or property, or a portion of your estate to support causes that matter to you.

Gifts of Assets

Tax relief is available when donating certain shares, securities, or investments to charity. When qualifying investments are given to a UK charity, donors may receive income tax relief on the value of the donation, and capital gains tax may also be avoided, making this a highly tax-efficient way to give.

Donations by Limited Companies

Donations made by a limited company to charity can be deducted from the company’s total profits before Corporation Tax is calculated. This means businesses can support charitable causes while benefiting from tax relief. However, corporate donations are not eligible for Gift Aid.

Gifts of Land, Buildings or Shares

Companies may also receive Corporation Tax relief when donating land, buildings, or qualifying shares to charity, or when selling them to a charity for less than their market value. This can provide a tax-efficient way for businesses to support charitable causes while making use of company assets.