There are numerous reasons for setting up a charitable trust. Many people want to ensure that their assets are used to fund charitable ventures, and they establish a trust to ensure that those assets will be disbursed in a suitable manner. Alternatively, some people establish charitable trusts as they want to maintain an active role (as they may have retired) either involved with an existing charities – or to set up a charitable venture of their own.
Setting up a charitable trust is not difficult.
Obtaining clear guidance is essential. You would best be advised by a specialist philanthropic adviser, they will ensure that you have clear guidelines and advice on how much funding that you can afford to allocate to charity and also carry out due diligence on a range of charities that you may consider assisting.
When preparing a Trust Deed, you need to ensure your trust satisfies the Charity Commission requirements you will also be able to claim Gift Aid on donations made. However, you should remember that this is only the case for donors that are UK taxpayers.
It is generally advisable for charitable trusts to apply for charitable status. This will provide you with favourable tax treatment, amongst other perks. However, it does increase the regulatory burden on your activities; you will be required, for example, to submit regular accounts to the Charity Commission.
There are ways to get involved financially without overburdening yourself with administration, one such way is by way of local Community Foundations.
If you are altruistic, please remember that there are a variety of ways to giving to assist others less fortunate than yourself. You can donate assets for example and that may be of assistance in lessening the inheritance tax burden on your estate. However many charities or places of voluntary work are desperate for volunteers who will gift their time (even a few hours a week) on a regular basis.
If you are considering gifting or setting u a charitable donation or want to take advice from a philanthropic counseling service, please do contact us at Pareto Lawrence we offer both Financial and tax planning advice to corporate and private clients