Why Compare Philanthropy and SEIS/EIS Equity Funding?
If you’re leading a UK startup, you’ve likely mused over two main routes to fund growth:
- Philanthropic giving – generous donors, gift aid, and donations channelled through registered charities like the Harvard Global Foundation.
- Equity funding – investors in exchange for shares, leveraging government-backed SEIS/EIS tax relief.
They both promise tax-efficient outcomes, but they serve different goals. One fuels non-profits; the other fuels startups. Here’s how they stack up, and why our commission-free Oriel IPO marketplace might be the game-changer—or, scratch that, the friction-reducer—you need.
The Philanthropic Route in a Nutshell
Charitable giving isn’t new. Think Gift Aid. A UK charity (like Harvard Global Foundation Limited) can claim back 25% of basic-rate tax on a gift. If you’re a higher-rate taxpayer, you get even more relief on personal returns. Win–win?
Pros:
– Donors feel warm fuzzies.
– Gift Aid boosts every £1 to £1.25.
– Simple for individuals and companies to give cash, shares, or bequests.
Cons:
– Money isn’t an investment. No equity.
– Startups get grants, not long-term partners.
– Charities can’t take a board seat or guide strategy.
– Limited to charitable purposes—your brilliant new widget doesn’t qualify.
The SEIS/EIS Equity Funding Angle
Enter the Seed Enterprise Investment Scheme (SEIS) and Enterprise Investment Scheme (EIS). HMRC-run. Designed to attract investors to early-stage ventures by offering SEIS EIS tax relief.
Key perks:
– SEIS: 50% income tax relief on investments up to £100,000.
– EIS: 30% income tax relief on investments up to £1m.
– Capital gains exemption on disposal (subject to conditions).
– Loss relief: offset losses against income or gains.
For investors, SEIS EIS tax relief is a big carrot. They buy shares. They share in success. They can reinvest returns via EIS roll-over relief. Sound attractive? It is.
But there’s friction. Complex forms. Compliance hangups. Finding the right prospective startups. That’s where Oriel IPO shines.
Harvard Global Foundation vs Oriel IPO
Let’s call Harvard Global Foundation the “philanthropy benchmark.” They excel at tax-efficient donations, but they aren’t in equity funding. No seat on the cap table. Just generosity.
Oriel IPO? We’re an online marketplace. We connect founders with angels who crave SEIS EIS tax relief, without commissions dinging your raise. Here’s how we compare:
| Feature | Harvard Global Foundation | Oriel IPO |
|---|---|---|
| Model | Donations via Gift Aid, bequests, shares | Equity funding via SEIS/EIS |
| Tax Benefit | Gift Aid reclaim, UK & US tax deductions | SEIS: 50% income relief; EIS: 30% relief, CGT benefits |
| Governance | No equity involvement | Investors get shares, can advise, board seats possible |
| Fees | Donation platform fees (JustGiving, etc.) | Commission-free; subscription fee only |
| Education | Charity tax guidelines | Dedicated webinars, guides, insights on SEIS/EIS |
| Matching | No investor matching | Curated investment opportunities, investor matchmaking |
Harvard Global Foundation is top-notch for scholarships, fellowships, research grants. But if you want an equity partner who’s invested, incentivised to help grow your startup, you need the SEIS/EIS route.
Here’s why Oriel IPO makes the difference:
- No commission on funds raised. You keep every penny (minus subscription).
- We vet opportunities. Investors see startups that tick all SEIS/EIS boxes.
- Educational toolkit: bite-sized guides, on-demand webinars, step-by-step compliance checklists.
- AI-powered content support through Maggie’s AutoBlog – generate investor-ready blog posts, landing pages, and updates in minutes. (Yes, we’re not only matchmakers; we help you tell your story.)
Deep Dive: SEIS EIS Tax Relief Explained
If the term SEIS EIS tax relief gives you the jitters, let’s simplify:
-
Income Tax Relief
– SEIS: 50% off your income tax bill on up to £100k. That’s a potential £50k tax saving.
– EIS: 30% relief on up to £1m (£300k saving). -
Capital Gains Tax (CGT) Exemption
– Hold for three years, and any gain is tax-free.
– Roll-over relief: reinvest gains from another asset to defer CGT. -
Loss Relief
– If things don’t go as planned, offset losses against income (up to the investment amount).
Imagine you invest £50,000 under SEIS. You claim £25,000 off your income tax. You hold shares for three years. They flop. You sell at zero and claim loss relief on the remaining £25,000. All up, you’ve really “spent” just £0. You not only mitigated risk but played by HMRC’s rules.
Fancy that.
Practical Steps for Founders
- Check eligibility.
Ensure your company meets the criteria: trading limit, independent status, maximum assets. - Get advance assurance.
Apply to HMRC early. Improves investor confidence. - Prepare clean due diligence docs.
Financials, pitch deck, legal agreements. - List on Oriel IPO.
Showcase your opportunity—no commission on funds raised. - Use Maggie’s AutoBlog for polished content.
Keep investors in the loop with blogs and updates, effortlessly.
By the way, we have a neat free trial. No credit-card drama. No surprise fees.
When Does Philanthropy Still Win?
Charitable giving is perfect if you:
- Want zero equity dilution.
- Are funding non-profit research, education, arts.
- Seek pure altruism without ROI expectations.
If your venture’s core is social impact or community project, pairing with a charity makes sense.
But if you’re scaling a SaaS app, manufacturing business, or innovative hardware, you need equity partners. That’s when SEIS EIS tax relief with Oriel IPO is your backstage pass to growth.
Balancing Both Worlds
Some founders blend models:
- Early grant from a charitable trust to validate pilot.
- Follow-on funding via SEIS/EIS for scaling.
Example: A cleantech startup received a £20k grant from a university trust to test prototypes. They then raised £150k on an equity platform under SEIS. The grant proved concept; the equity raised brand ambassadorship and networks.
It’s not all or nothing. Plan your funding roadmap across fiscal years. Map out when to tap grants, when to invite investors.
Keep Your Eye on the Ball
SEIS/EIS rules evolve. Budgets can tweak relief rates. A competitor might tout full-service advice, but Oriel IPO focuses on:
- Transparent subscription pricing.
- Easy-to-understand educational resources.
- Curated, compliant opportunities.
We skip the fluff. We cut through jargon. You get a platform that does one thing really well: match startups seeking SEIS EIS tax relief with investors wanting tangible returns—and tax breaks.
Ready to Supercharge Your Funding?
Whether you weigh donations through charities or equity stakes under SEIS/EIS, the choice comes down to your long-term goals. If ownership, control, and agility matter, equity funding via Oriel IPO wins hands down.
Join hundreds of SMEs across Europe. Enjoy:
- Commission-free raises.
- Hands-on support.
- Real-time content tools like Maggie’s AutoBlog.
It’s time to fuel your growth with partners invested in your success and incentivised by SEIS EIS tax relief.
