Can I leave money to charity?

Yes —you can leave a gift to one or more charities in your will, either as a fixed sum or a share of your estate, and it can also reduce the Inheritance Tax bill for your loved ones.

Why it matters

Leaving money to charity lets you support causes you care about long after you’re gone. It can boost the work of charities tackling issues from children’s welfare to environmental protection. Plus, charitable gifts in your will are exempt from Inheritance Tax, so that part of your estate passes entirely to the charity and can even lower the overall tax rate on the rest of your assets.

How to leave money to charity

1. Pecuniary gift
   • A fixed sum of money.
   • Wording example: “I give £5,000 to The British Red Cross (charity number 219279).”
2. Residuary gift
   • A percentage or share of what’s left after all other gifts.
   • Wording example: “I leave 10% of the residue of my estate to Cancer Research UK (charity number 1089464).”
3. Specific item
   • You can leave an asset (like shares or property) for charity to sell.
   • Wording example: “I give my portfolio of shares in ABC Ltd to Oxfam (charity number 202918).”
4. Multiple charities
   • Divide a gift between two or more.
   • Wording example: “I give £2,000 each to NSPCC (charity number 216401) and Shelter (charity number 263710).”

Always use the charity’s exact name and registration number so executors can identify them.

Tax benefits

• Full exemption: Gifts to UK charities are outside your taxable estate.
• Reduced rate: If you leave at least 10% of your net estate to charity, the Inheritance Tax rate on the rest falls from 40% to 36%.
• Estate planning: Combining fixed and residuary gifts can maximise your support for good causes while easing the tax burden on family.

Common mistakes

• Vague names: Saying “the local animal charity” can create confusion—always include the official name and charity number.
• No fallback: If your chosen charity no longer exists, the gift may fail. Add a clause like “or if no longer operating, to the British Heart Foundation (charity number 225971).”
• Over-committing: Leaving more money than your estate can afford may force executors to sell assets. Balance charitable and family gifts.
• Not updating: Charities merge or change names. Review your gifts whenever you update your will.

Next steps

1. Try our Estate Planning Health Check to see how charitable giving fits into your plan.
2. Complete your details in our paid online will-writing service—it guides you step by step to add clear gift wording.
3. Once you receive your will, make sure you sign it with the required witnesses and store it safely.

‍