| Thursday, December 22nd, 2022

Money transfer for charity donations

International donations: Sending money to an overseas charity

It's really rewarding to feel like you've contributed to a cause that means a lot to you. If you're wanting to send money to an overseas charity, consider arranging an international money transfer to send the funds. It's surprising how many charities don't have international bank accounts, and sending money directly to the charity account in their home country can be the most efficient, cost-effective way to make the donation.


Donations to educational institutions

So one of the most common reasons to send donations internationally is to support a former school or college in a country you no longer live in. Some of these institutions may have a fundraising team based locally, but others only have a fundraising office in the school’s home country. If this is the case, creating a channel to transfer money can save you a lot of hassle – just take a look at what our recommended transfer providers offer!


Tax implications of making a donation

Take note – if you're making a charitable donation personally or from your company, it is advisable to additionally seek some tax advice as to whether the donation is tax deductible. As this varies from country to country and is subject to change over time, make sure to do your research first!

In the UK, Gift Aid allows a donation to a charity or community amateur sports clubs to be re-claimed in certain circumstances. If you pay income tax at the basic rate, no additional relief is due on your gifts. However, if you pay a higher rate tax, have a higher personal allowances or tax credits, Gift Aid donations may be able to increase your entitlement further. For up to date information, see here.

The US has seen changes in taxing around charitable donations abroad – it's a good idea to keep up to date by fact-checking before you make any donations. We recommend seeking tax advice as to the exact handling of a charitable income tax deduction in the US. You can read more on the IRS site.

Donations made to a charity in Australia can be tax deductible. Be sure to do your research based on your country's tax laws to avoid any problems down the line. It's important to keep up to date through a reliable source, such as the Australian government’s site.


Using a money transfer provider

So you're ready to make a donation? Do it the smart, efficient and easy way by going through a money transfer service. In doing so, you can avoid unsightly bank charges, while making future payments simple too! Don't forget to see our trusted money transfer provider reviews! Or use our comparison tool for company comparisons.

FXcompared.com is an fx money comparison site for international money transfer and to compare rates from currency brokers for sending money abroad. The website and the information provided is for informational purposes only and does not constitute an offer, solicitation or advice on any financial service or transaction. None of the information presented is intended to form the basis for any investment decision, and no specific recommendations are intended.  FXC Group Ltd and FX Compared Ltd does not provide any guarantees of any data from third parties listed on this website. FX compared Ltd expressly disclaims any and all responsibility for any direct or consequential loss or damage of any kind whatsoever arising directly or indirectly from (i) any error, omission or inaccuracy in any such information or (ii) any action resulting therefrom.