Retail Bargains |
|
Your Money > Retail Bargains Articles > In the red...
|
|
By Sarah Modlock
Red noses are everywhere - and it's not just the usual bout of winter colds. It's that time of year when we do silly things to raise cash for good causes. How to save by giving to charity It is easy to feel so fed up with the current economic gloom and worried about how bad it may get to feel that giving to charity is a luxury you can no longer afford. Whether already skint or trying to avoid it, millions of people have cancelled direct debits and other donations to charities they support and it is starting to hit the sector hard. Low on stock Other contributions such as bags of clothes, books and bric-a-brac to charity shops have not only slumped in volume and frequency but the shops have been cleaned out by thrifty shoppers aiming to save money by snapping up second hand bargains. Even brides to be are saving as much as possible and sales of wedding dresses have soared at Oxfam, which has 11 specialist bridal shops. So although the tills are ringing now the concern is that pretty soon there will be little left to sell. The number of internet searches for 'second hand' has also leapt up. David Moir, head of policy at the Association of Charity Shops says: "While we are getting reports from some members of increased demand, the main effect (of recession) is that people are not replacing their existing clothes. They may be selling some on eBay but they are definitely not donating them in the same volumes. When people are worried and money is tight, people tend to hoard. "But we have, we are, and we will, continue to send out the message that unwanted clothing and other items can make an enormous difference if sold through charity shops." Cancer Research UK, which has 550 shops across Britain, says it is desperate for new stock. It has signed up TV presenter Lorraine Kelly to front a 'detox your wardrobe' campaign in the hope of generating fresh donations. The British Heart Foundation, with more than 580 charity shops plus 50 furniture and electrical stores, faces a similar predicament and is running a stock donation campaign this month. As large charities such as Shelter and the NSPCC make staff redundant, cut services and consider mergers, the Charities Commission figures show that moneys held by 260 large charities fell by 13% in the past year. Government bailout It's not just big bankers who are getting taxpayers' cash. Last month the government announced a £42.5 million bailout for charities to help them survive the recession. It's a lot of money but still just a fraction of the £500 million requested by charities during crisis talks last year. They said at the time that this amount was dwarfed by the £500 billion handed to banks. But many of the other 190,000 registered charities in the UK which are struggling will not find much comfort in the money if they get any (it would amount to £210.52 per charity if divided between all). Stephen Bubb, chief executive of the association of chief executive officers of voluntary organisations cautiously welcomed the aid: "It's a start, but more is going to be needed as the recession unfolds, and in two or three years, £500m may end up being the total sum. Those smaller charities who support people who have lost their job will be coming back to the government and asking how can you support us more?" Cheap clothes problem Looming in the background is the problem being created by the massive demand for cheap clothes. So although Primark and Matalan may be a life saver for anyone on a budget, many shoppers are finding that their cheap kit is a false economy as it does not wash well or last long. Much of it ends up in landfill and the items that do make it to charity shops are often too shabby to be re-sold and so face the rag bag. Unfortunately, as most are made from man-made fibres, they cannot be sold to recyclers and so the only option is landfill. The department for environment food and rural affairs launched a "clothing roadmap" at Estethica, the sustainable wing of last month's London Fashion Week, saying that 2m tonnes of clothes are disposed of every year in the UK, of which only 16% is recovered or recycled, with the rest ending up in landfill sites. Oxfam, the biggest operator in the charity shop sector, with around 730 high street shops says it has - until now - managed to sidestep the decline in donations through a series of innovations. A year ago it set up a partnership deal with Marks & Spencer where, if someone donates a labelled M&S item to an Oxfam shop they receive a £5 voucher giving them £5 off when they spend £35 on clothing and homeware at M&S. This has boosted donations to such an extent that Oxfam has raised £1.7m over the year through extra sales of second-hand M&S items. Other initiatives which have helped both buying from, and donating to, Oxfam's shops include the launch of three boutiques in London where a series of leading designers created pieces from donated items. But even these moves are not enough to counteract the pressures it faces. Meanwhile, although they are very keen to have your donations, you can also expect signs in Oxfam stores requesting that you do not give them any items of clothing which are unfit to be re-sold as they try to stem the tide of 'toxic' cheap clothes. If you are continuing to give to charity or the above has guilted you into starting then don't forget to take advantage of the tax breaks so that the charity gets more and the taxman less: • Gift Aid is offered by most charities at the point of donation and allows charities to claim back 25p for every pound given. If the donor is a higher-rate taxpayer, they can claim higher rate relief on the payments by entering the donations in the gift aid box on their self assessment tax return. Customer's who receive a form P810 can declare their gift aid payments on it. • Give via your payroll and donations not only slip out painlessly but they are more tax-efficient. Employees ‘give as they earn' (GAYE), so the donation to their chosen charity is made from their salary before tax is paid. You benefit because you don't pay any tax on the donations you make. If you're a basic rate taxpayer, a gift of £5 only actually costs you £4 - so you can pass the tax relief on to the charity. • Give shares via the ShareGift scheme and you can reduce your income tax bill whilst being generous. The shares you give are pooled and shared between 700 charities. This is particularly useful for people who have received a small number of shares through an inheritance, or have an odd number of shares that would be too costly to sell as they are. • Pass on your tax rebate if you are lucky enough to have one. Just tick the box on your tax return and some or all of the cash can be donated to the charity of your choice. Useful links: |
| ||||||||||||||||||