A new guide highlighting the tax incentives of corporate giving has been launched by the government, acknowledging that tax efficient giving is underused and misunderstood.

A Guide to Giving for Business was launched late last week by minister for the Cabinet Office Tessa Jowell (pictured) on behalf of the Office of the Third Sector, HMRC and HM Treasury.

The guide is an update on 2005’s Tax incentives for Corporate Giving, and acknowledges within its pages that "many of the tax incentives are very often underused and poorly understood". The recent Coutts Million Pound Donors report found that businesses gave only 11 per cent of all £1m-plus donations, despite the tax incentives for such philanthropy.

The guide covers a range of tax efficient corporate giving mechanisms, from donating cash and shares to sponsorship and staff volunteering.

"The benefits of partnerships between the charitable and private sectors are enormous. Not simply through raising money for charities and causes, but through the sharing of knowledge and the development of staff," said Jowell.

Mike Kelly, head of corporate social responsibility at KPMG - which was consulted on the writing of the guide, said that the guide targets both the business and fundraising communities.

“Working with the third sector is a real ‘win-win-win’ situation.  Charities benefit from the skills and resources as well as the cash, businesses benefit from the staff development that takes place, and members of staff can find it hugely motivational to be able to support their communities,” he said.

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Guide on tax efficient giving admits awareness and use is low

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Directory: HM Revenue & Customs | HM Revenue & Customs (HMRC) | Office of the Third Sector