Targeted: Earn 5 x Nectar points (10 per £1) when you donate your used goods to Oxfam

Until we moved two years ago, we had an Oxfam shop at the top of our road (photo below). We often used to drop off second hand items there, especially as our children grew.

Oxfam has an excellent scheme called ‘tag your bag’ which uses Gift Aid to increase the amount of money received from your donation. Even better, if you are a higher rate taxpayer you receive a little present from the tax man too!

You can sign up online or in your nearest store. You need to fill in a form with your name and address and tick a box to confirm that you are a UK taxpayer. You agree that Oxfam will sell your products on your behalf and that you will donate the money back to Oxfam. This means, technically, you are making a cash donation to the charity.

As it is a cash donation, Oxfam can reclaim an additional 25% of Gift Aid on top of your donation. If your products sell for £30, the Government gives Oxfam an additional £7.50.

Every six months you receive an email from Oxfam telling you how much they made from your items. If you are a higher rate taxpayer, you can include this amount – £30 in my example – as a charity donation on your tax return. You will then receive an additional tax rebate of £7.50 for yourself. Everyone wins!

To encourage more people to use ‘tag your bag’, Oxfam has teamed up with Nectar.

Tag Your Bag Oxfam

You will receive 100 Nectar points purely for signing up.

(If you are already signed up for ‘tag your bag’, you can add your Nectar number here and also receive the 100 points.)

Going forward, you will receive 2 Nectar points for every £1 that Oxfam raises from the sale of your goods.

Until 25th October, Oxfam and Nectar are running a very special deal. You will receive 10 Nectar points for every £1 that Oxfam raises. Your goods must be sold before 25th October, not just dropped off, so don’t leave it until the last minute.

This offer is potentially targeted, although Anika and I both have it on our accounts. Full details can be found on this page of the Nectar website (log-in may be required).

The only issue with the scheme is whether you should take part at all. Oxfam is buying the points from Nectar which obviously leaves it with less money for its charitable work.

On the other hand, Oxfam clearly believes that the Nectar partnership generates awareness and interest in ‘tag your bag’ which increases the income it gets from donations. It may even believe – in a very competitive charity market – that it encourage people to donate goods to Oxfam rather than other charity shops. It is a decision you need to take for yourself.

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Comments

  1. MARY HOCKENHULL says:

    So when you get your letter from Oxfam which says how much your donated items have raised and say it says £30 – if you complete a tax form is this the figure you include. My husband used to do a short tax form and it had a box for gift aid but I was never exactly sure how to complete this

  2. I don’t have that offer on my account, so I guess it is targeted.

  3. Getting the tax back for HRTPs that wouldn’t otherwise do self assessment can also be done through your tax code

  4. O/T: I got this from Tesco Bank today. “Collect 2,500 Tesco Clubcard points.
    If you’re a new Home Insurance customer with a Tesco Clubcard you’ll collect 2,500 points when you buy a combined buildings and contents policy direct from us by 28 February 2018 and quote OCT7P and your Clubcard number. This offer is not available if you get a quote or purchase from any price comparison websites.”

  5. From personal experience, there’s usually a discrepancy between the amount that Oxfam tells you it’s sold your goods for and the amount of Nectar Card points that you get. When I went back to match it up, I found that they were only crediting me for a quarter of the sales figure and speaking to the manager of my local shop, it’s very hit and miss whether the volunteers properly record your donation so that the points can be allocated.

    I support Oxfam generally so it’s an irritation more than an issue, but if you’re donating clothes and looking for a better “reward” for doing so, it’s better to use the M&S Sparks card where you get 50 points for each bag of clothes you donate (the points being instantly allocated at the till). I know M&S Sparks only offers discounts but it’s been better value for me as the clothes still go to Oxfam.

  6. Do Oxfam pay for the nectar points?

  7. The Oxfam scheme is poor. If you donate a large bag of items they will personally select the items they think will sell for a high amount which are worthwhile for gift aid. The volunteers in the back, many of whom are on some sort of work placement or adult training scheme, do not log your number against every item you donate. So if you have an item that sells for £2 you will not get Nectar points for it.