A guide to tax relief and charitable donations: A win-win opportunity
By the William Ellis Trust
Philanthropy has always helped shape the story of William Ellis School. The founding of the school was as a result of the philanthropic drive of our founder and namesake which you can read more about here.
One of the key roles of the William Ellis Trust today is to help continue this tradition of generosity by investing the funds raised from supporters into projects that add value to the pupils at the school. Our work supports initiatives that develop confidence, belonging, character, aspiration and positive masculinity among pupils, while helping William Ellis School continue to influence wider conversations around boys’ education.
Charitable giving and its tax benefits for charities and donors:
We know our supporters are motivated first and foremost by the impact a gift can have on pupils’ lives. Donations help fund enrichment activities, outdoor education at the Mill, innovative school projects, mentoring, creative collaborations and opportunities that might otherwise remain out of reach for some young people.
What is sometimes less widely understood is that UK tax law also provides a number of generous incentives for charitable giving. These measures are designed to encourage philanthropy and can significantly increase the value of support given to charities like ours.
In this article we introduce some of the benefits to you, to us, and how to ensure donations bring the maximum benefit to our beneficiaries.
Gift Aid:
One of the most familiar examples is Gift Aid. If you are a UK taxpayer, Gift Aid allows charities to claim an additional 25p from HMRC for every £1 donated, at no extra cost to the donor. A £100 donation therefore becomes worth £125 to the charity. For a growing organisation like ours, Gift Aid can make a meaningful difference to the scale and sustainability of our work.
You can simply tick the checkbox on our donation widget and the Charities Aid Foundation (CAF) will automatically collect this on our behalf. We benefit from Gift Aid on both one-off donations made by supporters, as well as on recurring donations made through our regular giving initiative the Rather Use Than Fame Club.
Use of a Charities Aid Foundation giving account:
A number of our supporters use their CAF account to make donations to the Trust. Money that you pay directly into your CAF account can be deducted from your taxable income making it a cost-effective way to manage your charitable giving. We partner with CAF as our main donation platform.
Learn more about a CAF Personal Giving account here.
Legacies and Inheritance Tax:
Another important area of charitable giving relates to legacies and inheritance tax. In 2025, 34% of all charitable income in the UK came from legacy giving. Leaving a gift to our charity in your will is one of the most significant ways to support future generations of pupils. Gifts left to registered charities are exempt from inheritance tax, meaning the value of a charitable legacy is normally deducted from the taxable value of an estate.
In some circumstances, leaving at least 10% of a net estate to charity can also reduce the overall inheritance tax rate applied to the remaining estate from 40% to 36%. While anyone considering legacy giving should seek professional legal or financial advice, many supporters find comfort in knowing that a gift in their will can both support causes they care deeply about and form part of effective estate planning.
Legacy gifts already play a hugely important role across the charitable sector and are increasingly important in helping organisations think long term. The Circle of the Oak is our club to recognise those who have opted to name us in their will and provide a future gift to our work. You can learn more about how to name the charity in your will in this document.
Donating investments and shares:
There are also tax-efficient ways to donate investments and shares. Donating shares listed on the London Stock Exchange, units in authorised unit trusts, or shares in certain investment funds to a registered charity can provide substantial tax advantages. In many cases, donors can claim income tax relief on the full market value of the shares at the time they are donated.
Importantly, donating shares directly to charity also means donors usually avoid paying capital gains tax on any increase in the value of those shares. For individuals with appreciated investments, this can make share donations a particularly effective form of giving. You can read HMRC guidance on this here.
Our investment fund allows us to receive gifts of shares directly. Our investment portfolio is not an endowment, but does provide us with a core income to invest into our work each year as well as invest larger amounts in specific projects from time to time. As a charity we are exempt from Capital Gains Tax and so can make full value of any gift and its proceeds.
We believe deeply in the potential of our young people. We also believe that schools like William Ellis have an important contribution to make nationally in developing thoughtful, compassionate and socially engaged models of boys’ education.
Whether through a one-off donation, regular giving, a gift of shares or a legacy in a will, philanthropic support helps us continue our mission. Ensuring that we make best use of the tax benefits built into charitable giving helps us to amplify our work and impact further. You can be assured your donation will help ensure that financial circumstance is never a barrier to opportunity, and that future generations of pupils can continue to benefit from the same spirit of generosity and belief in the power of education that has defined the school since its founding.
If you would like to start a conversation about supporting our work please contact our Director, Will Durham, at wdurham@williamellis.camden.sch.uk