A range of more tax-efficient ways to give to charity are available

Giving to charity is something that most of us want to do but often don't get round to. However, there are a number of easy, everyday ways of giving at less – or even no – cost to yourself.

Give As You Earn
Also known as payroll giving, GAYE allows employees to make tax-free charitable donations out of their before-tax income. A £10-a-month donation costs a basic-rate taxpayer just £7.80 (just £6 for a higher-rate taxpayer).

Charity credit cards
The Halifax, Co-operative Bank and Bank of Scotland are among a range of banks offering charity-linked credit cards. The cards work normally, except that whenever you use them the bank makes a small donation to charity.

For example, the Co-operative's Oxfam card gives 25p to the charity for every £100 you spend. When you first take out a card the bank also donates £15 to Oxfam.

None of this costs you anything. Be warned, though: interest rates on these cards tend to be high and they should only be used if you pay off your balance in full each month.

Gift Aid
Gift Aid is for donations out of taxed income. The charity can reclaim basic-rate tax, so boosting the value of the gift. At the same time, if you are a higher rate taxpayer you can also reclaim 18% of the value of your gift, effectively reducing its cost.

Legacies
The property boom means that the number of families faced with having to pay inheritance tax (levied at 40% on estates worth £275,000+) is rising all the time.

But if you leave part of your wealth to charity you can cut down on the taxman's take. Whatever you leave to charity is free of IHT: all you need to do is state your intentions in your will.

ShareGift
Donations of shares to charity avoid your having to pay any Capital Gains Tax (CGT) on profits. You can also deduct the value from your income to reduce your tax bill.