Research from Direct Debit reveals that up to £395 million a year is being poured down the drain via donations that fail to take advantage of the tax breaks afforded to charities.

The UK donates a generous £3.2 billion a year to charity but you could be giving 28 per cent more if you ensured that your contribution was given tax-effectively.

What does this mean?
More than half of donations are given in spontaneous moments of generosity like street collections and sponsorship - methods that don't necessarily take advantage of charitable tax breaks.

If you are a tax-payer and wish to increase the value of your donation to your chosen cause, you can donate through Gift Aid.

"For every pound donated to charity, 28p is reclaimable through charity tax exemptions, and while spontaneous donations are a great source of income for charities, these kind of contributions are not always tax redeemable. Currently, less than a quarter (24 per cent) of donations made to charities are given in a planned and regular method payment like Direct Debit and subscriptions," says Fergus Rose from Direct Debit.

"We're encouraging people to give via a Direct Debit scheme because it allows tax-paying donors to give written permission for their chosen charity to claim the tax paid on their contribution. Additionally, if donors make regular payments and spread the cost of giving throughout the year this makes budgeting much easier for charities while ensuring donors can keep better track of their donations."

Who is the most generous?
A survey conducted by BACs Ltd found that men are the most generous of the genders donating an average of £94.80 a year, £20 more than women, whose annual contribution is £71.05.

When you dig deep, children are closest to your hearts, with more than a third (36 per cent) of the country opting to give to a kid's charity. Second in the league table, measuring 31 per cent of donations, are charities linked to sufferers of major diseases or disabilities.

How to donate with tax breaks
To arrange a donation, you should look at your chosen charity's website and choose from the various Direct Debit sign-up options now available: online, telephone set-up as well as traditional Direct Debit paper instructions.

For more information about Direct Debit or Gift Aid, visit http://www.directdebit.co.uk or http://www.inlandrevenue.gov.uk/charities