Four tax-efficient ways to support HCF

Supporting Hertfordshire Community Foundation (HCF) is a powerful way to strengthen local communities and champion grassroots charities across Hertfordshire. Your generosity helps us direct funding where it is needed most, creating lasting impact close to home.

Giving through HCF can also be tax-efficient. By making a charitable donation before 5 April 2026, you may be able to reduce your tax liability for the 2025–2026 tax year.

If you are considering year-end giving, now is the time to act — ensuring your support benefits local causes while making the most of available tax relief.

Make a gift combined with Gift Aid
For basic rate taxpayers, HCF can reclaim basic rate tax on your gift. This means you can effectively gift £100 to HCF with a spend of just £80.

For higher rate and additional rate taxpayers, you – or HCF - can reclaim the difference between basic and higher rate tax. For example, a spend by a higher rate taxpayer of £80 to HCF means a total gift, after HCF has reclaimed tax, of £100, and the taxpayer can reclaim additional tax of £20, which means the net cost to them overall is £60. An additional rate taxpayer may reclaim an additional tax of £25, which means the net cost to them overall is £55.

In order to make a valid Gift Aid donation, you will need to sign a declaration to confirm that you have paid enough tax to fund it, and agree to HCF claiming Gift Aid. You can also make a donation and claim Gift Aid via our online donation page here.

Make a gift of property or shares
There are no Inheritance Tax consequences of gifting property or shares given to HCF. Under the charitable exemption rules, the full value of the gift bears no Inheritance tax either at the time of the gift or on your death.

A saving on income tax is achieved by deducting the value of your gift to HCF from your taxable income on your tax return.
There is no Capital Gains Tax to pay on gifts to HCF which have increased in value since you acquired them.

Make a gift through Payroll Giving
If your employer offers the scheme, you will not pay income tax on any gifts to HCF – the gift will be made before that tax is deducted from your pay.

Make a gift in your Will
Gifts to HCF made in your Will are free of Inheritance Tax. If you gift 10% or more of your net estate to HCF, the Inheritance Tax paid on the remainder of the estate is reduced by 4%, from 40% to 36%. For large estates this can represent a substantial saving.

The advantage of making a gift to HCF rather than to a named charity is that you eliminate the risk of gifting to an individual charity which no longer exists at the date of your death. This risk can have serious ramifications if you have left the whole of your estate to charity as the gift you intended to make may not pass to the correct charity.

Many thanks to:
Alastair Liddiard, Partner and Head of Trust and Estate Administration for Longmores Solicitors for preparing the above article. If you wish to know any more about any of the tax reliefs above please contact Longmores, Alastair Liddiard, Partner and Head of Trust and Estate Administration, by alastair.liddiard@longmores.law or 01992 300333.

Please note, the contents of this article are given for information only and must not be relied upon. Legal or financial advice should always be sought in relation to specific circumstances.

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