You might be wondering – isn’t financial planning all about saving, investing, and growing your money? Where does giving fit in?
At Women’s Wealth, we believe that financial planning isn’t just about accumulating more. It’s about helping you live your best life – whatever that looks like for you. For many of the women we work with, that includes supporting causes they care deeply about, helping family, or simply aligning their money with their values.
And here’s the thing: giving isn’t just good for the world – it’s good for you too.
The Feel-Good Science of Giving
Turns out, being generous doesn’t just make others feel great – it boosts your wellbeing as well. Here’s what research says:
Mood booster: Giving activates the brain’s ‘reward’ system, releasing feel-good chemicals like dopamine and serotonin. Yes, giving literally makes you happier.
Stress less: It can actually lower your stress levels by triggering oxytocin – a hormone linked to calmness and connection.
Fights the blues: Regular giving, whether it’s money, time or kindness, has been shown to ease symptoms of depression and increase emotional positivity.
More meaning, more fulfilment: Generosity nurtures empathy, gratitude and purpose – all linked to higher life satisfaction.
Surprising health benefits: Studies show that generous people may enjoy stronger immune systems, lower blood pressure and even longer lives. (Yes, really!)
Your brain loves it: Neuroscience backs it up – giving lights up the same areas of the brain as joy and decision-making. It feels good because it is good.
Can Giving Actually Save You Money?
Yes, it really can! Giving smartly isn’t just about generosity – it can also be a strategic move in your overall financial plan.
Gift Aid
If you donate to a UK-registered charity and tick the Gift Aid box, the charity can claim back 25p for every £1 you give – at no cost to you.
If you’re a higher-rate taxpayer (40% or 45%), you can claim back the difference between your rate and the basic rate on your tax return. So a £100 donation (worth £125 with Gift Aid) could mean you personally claim back £25 or more.
Payroll Giving
If your employer offers Payroll Giving, your donation comes straight out of your salary before tax. That means instant tax relief, and it’s super simple.
The £100k Tax Trap
Giving to charity can also help reduce your adjusted net income. This is especially useful if you’re earning over £100,000 and risk losing your personal allowance or childcare benefits. (We’ve written more on this here.)
Giving & Inheritance: Leaving a Legacy (and Paying Less Tax)
Giving also plays a powerful role in estate planning. Whether you want to pass on wealth to your children or leave a legacy to causes close to your heart, planning ahead makes a big difference.
Giving to Charities in Your Will
You can leave any amount to charity in your will – and that amount is completely exempt from inheritance tax.
Even better? If you leave 10% or more of your estate to charity, the rest of your estate may qualify for a reduced inheritance tax rate – from 40% down to 36%.
Let’s break it down:
Imagine your estate is worth £800,000.
- £325,000 is tax-free (the nil-rate band).
- The rest (£475,000) would normally be taxed at 40% = £190,000 tax.
But if you leave £80,000 to charity:
- That £80k is tax-free.
- You only pay tax on the remaining £395,000—but now at 36% = £142,200.
Gifting to Family: How Much Can You Give Tax-Free?
Thinking about helping your kids with a house deposit, or giving regularly to loved ones? Here’s what you can do without triggering inheritance tax:
Tax-Free Gifting Allowances:
- £3,000 per year (can carry forward one year if unused).
- £250 per person (as long as you haven’t used another allowance on them).
- Wedding gifts: £5,000 for children, £2,500 for grandchildren, £1,000 for others.
- Unlimited gifts to your spouse/civil partner (as long as you’re both UK-domiciled).
- Regular gifts from surplus income (these need to be truly surplus and part of a regular pattern).
The ‘7-Year Rule’
If you gift more than your allowances – like giving your child a large lump sum – surviving 7 years after making the gift means it’s completely free of inheritance tax.
If you pass away within 7 years, it may be taxed, but taper relief can reduce the bill after year 3.
Giving = Empowerment
When you give with intention, you’re not just making a difference – you’re making a statement about what matters to you.
At Women’s Wealth, we help women align their money with their values. Whether that means donating to causes, helping your kids or reducing your tax bill (yes please), giving is a tool for building a life that feels good – not just financially secure, but purposeful too.
Tap below to book your free 15-minute call – we’re here to listen and help.