Share Giving And Other Non-Cash Donations: A UK Charity Guide

Most small UK charities only ever set up to receive cash, card and direct debit. That cuts them off from a small but disproportionately valuable stream of income: gifts of shares, property, art and other tangible assets. A single share gift from a higher-rate taxpayer can be worth more, net of tax, than a year of community fundraising. The reason most charities miss these gifts is not lack of donor appetite. It is lack of an acceptance policy and a working process.

Why non-cash gifts matter more than the numbers suggest

When a UK donor gifts qualifying listed shares to a charity, they get income tax relief on the full market value and pay no capital gains tax on the disposal. For someone sitting on appreciated shares with a sizeable unrealised gain, the combined tax saving can equal 40 to 50 percent of the gift value. That is a powerful reason for advisers and accountants to suggest a share gift rather than a cash one.

The same logic applies, with extra complexity, to gifts of land, property, valuable art, and certain other physical assets. The donor benefit is real. The charity benefit is real. The friction is administrative.

The five gift categories trustees should think about

1. Qualifying listed shares and securities (the most common and easiest).
2. Unlisted shares in private companies (more complex, often restricted disposal).
3. Land and property (high-value but high-risk if held).
4. Tangible cultural assets: art, antiques, instruments (valuation and storage matter).
5. In-kind goods and services that displace cash spend (different rules, often not tax-relievable for the donor).

The acceptance policy: the document that opens the gifts

Advisers will not initiate a share transfer or property conveyance to a charity that does not have a written acceptance policy. The policy does not need to be long. A two-page document, board-approved and reviewed annually, is enough. It should cover:

• Asset classes the charity will and will not accept by default.
• Decision threshold: which gifts the executive can accept, and which need board sign-off.
• Due diligence: ML/KYC checks, source-of-funds questions, beneficial ownership.
• Valuation method for the accounts.
• Default disposal route (e.g. sell listed shares within 30 days) versus retention.
• Named contacts: the donor adviser route in, the trustee owner of the policy.

The practical receipt process for share gifts

Step 1: capture intent early

Most share gifts are flagged weeks before they arrive, often by an accountant or wealth manager on behalf of the donor. Have a single named contact (usually the head of fundraising or finance director) who can take the call, confirm the policy is in place, and send the standard transfer instructions.

Step 2: provide CREST or stock transfer details

The transfer happens via electronic transfer (CREST) or a paper stock transfer form. Your broker can provide standing instructions you reuse for every gift. Email the donor adviser the broker name, CREST account details, and a contact for confirmation. The donor signs, the broker confirms receipt, and the gift is settled.

Step 3: value, sell, and acknowledge

On receipt, record the mid-market value on the transfer date. Instruct the broker to sell within the timeframe in your policy. Send the donor a written acknowledgement noting the asset, the number of shares, the transfer date and the mid-market value. The donor uses this letter to claim their income tax relief in their self-assessment.

Land, property and tangible gifts: the extra steps

Gifts of land or property need professional advice before acceptance. Instruct a chartered surveyor for valuation and condition, and a solicitor for title and restrictions. Trustees must satisfy themselves that the gift will not cost more to hold than it will deliver in eventual sale or use. For art and antiques, valuation, storage, and insurance need to be settled before the gift is accepted.

For all higher-value or complex gifts, brief the board before acceptance, document the decision in minutes, and confirm the chosen disposal or retention route in writing to the donor.

What good looks like in the annual report

Treat non-cash gifts as a distinct income line in the SOFA, with a narrative note in the trustees report explaining the policy and any notable gifts received. This signals to the next generation of advisers and donors that your charity is set up to receive these gifts properly. It also gives the audit committee a clean view of the value being created by a relatively low-effort policy.

A non-cash gifts policy is one of the highest-value two pages a small charity trustee board will ever sign off. The cost is an afternoon. The income stream it opens is permanent.

Common trustee worries, addressed

• We will be obliged to hold every asset we are offered: no. Your policy lets you decline gifts that are not in the charity interest, and that refusal is itself an act of good stewardship.
• We do not have the expertise: that is what brokers and surveyors are for. The trustee duty is to choose the right adviser, not to be the adviser.
• It is too rare to bother with: one well-handled share gift in a five-year period typically pays for the entire policy and adviser fees many times over.

Set the policy, name the contact, and tell your existing major donors and their advisers that you can receive non-cash gifts. The first one will arrive sooner than most boards expect.

Related reading: In-Memory Giving Without the Mawkishness, Legacy Giving for Small Charities: Start Honestly, Start Small and Gift Aid Explained: How Charities Claim It and the Mistakes That Cost You Money.