An expert view from Rachel Buscall, CEO of New Capital Link.
Charitable giving is often driven by purpose rather than profit. But, when structured correctly, philanthropy can also play a legitimate role in effective tax planning. According to Rachel Buscall, CEO of New Capital Link and founder of the New Capital Link Foundation, understanding how donations interact with the tax system allows individuals and businesses to give more impactfully — without compromising financial responsibility.
“Giving should never be about tax avoidance,” Rachel explains. “But it’s important people understand that the UK tax system actively encourages charitable support. When donors are informed, they can give confidently, knowing their contribution is both meaningful and efficient.”
The UK’s Framework for Tax-Efficient Giving
In the UK, charitable donations to registered charities benefit from several well-established tax relief mechanisms. For individual donors, Gift Aid allows charities to reclaim basic rate tax on donations, increasing the value of a gift at no extra cost to the donor. Higher and additional rate taxpayers can then claim further relief through their Self Assessment returns.
“Gift Aid is one of the simplest ways to amplify the value of a donation,” says Rachel. “Many people don’t realise that a £100 donation can be worth £125 to a charity, while also reducing their own tax bill if they’re a higher-rate taxpayer.”
For businesses, charitable donations are generally treated as allowable deductions, reducing taxable profits. This means companies can support causes aligned with their values while remaining fiscally prudent.
Strategic Giving Over Ad-Hoc Donations
Rachel is a strong advocate for planned, structured philanthropy rather than sporadic giving. This philosophy underpins the New Capital Link Foundation, which does not accept public donations but instead selects specific charities to support through financial contributions, equipment donations, and hands-on volunteering.
“Whether you’re an individual or a business, a strategic approach matters,” she explains. “Regular, well-considered giving allows donors to forecast costs, understand tax implications, and ensure their support delivers real, lasting outcomes.”
She notes that this mirrors sound financial planning: clarity, consistency, and long-term thinking tend to produce better results than reactive decisions.
Beyond Money: Time, Resources, and Expertise
While tax relief applies primarily to financial donations, Rachel stresses that impact shouldn’t be measured purely in pounds.
“Volunteering time or donating equipment doesn’t carry tax relief in the same way, but the social return can be enormous,” she says. “At the Foundation, we see first-hand how structured volunteering strengthens communities and gives teams a deeper connection to the causes they support.”
From a corporate perspective, this broader approach can also enhance employee engagement and reinforce a company’s social responsibility credentials — benefits that, while not directly tax-deductible, can support long-term organisational value.
Philanthropy With Integrity
Rachel is clear that tax efficiency should always be secondary to genuine intent.
“Charitable giving should start with purpose,” she says. “Tax benefits are there to support generosity, not to drive it. When philanthropy is authentic, transparent, and well-governed, the financial advantages simply become part of a well-balanced approach.”
This belief has shaped her leadership throughout her career, from personally organising charity fundraisers and JustGiving campaigns to formalising giving through the New Capital Link Foundation.
A Responsible Way Forward
For those considering charitable donations — whether privately or through a business — Rachel encourages seeking professional advice and thinking long term.
“The most effective giving happens when people understand both the social and financial implications,” she concludes. “When done properly, charitable support can benefit communities, strengthen organisations, and sit comfortably within responsible tax planning.”
