Benefits of Giving

1. A gift to the Anglo-American Charity allows a UK tax payer to increase the value of his gift significantly as the charity can reclaim a portion of the value of the gift from Her Majesty’s Revenue and Customs (HMRC).

2. A UK taxpayer paying the top marginal rate of tax (currently 45%) can claim additional UK income tax relief on the nominal amount of the gift.

3. A gift made by a US tax payer will result in a deduction on his Federal tax return to the extent permissible.

4. A gift to the Anglo-American Charity will be excluded from the donor’s UK estate (and US estate, if applicable).

5. The Anglo-American Charity can accept gifts of marketable securities, allowing a donor to give highly appreciated securities without capital gains consequences. Minimum gift is $5,000.00 for securities. Please note that gifts of securities are not eligible for Gift Aid.

6. The Anglo-American Charity can accept gifts offshore of “unremitted” funds, which depending on the donor’s tax status may be eligible for Gift Aid Reclaim

7. The minimum gift is $1,000.

Hypothetical Example (39.6% US tax bracket) Donation to US charity directly of $10,000

US Charity receives  $10,000
US tax deduction Nil to $4,950*
UK tax deduction Nil

Donation to US charity via The Anglo-American Charity Ltd. of $10,000

US charity receives $12,000**
US tax deduction Nil to $4,950*
UK tax deduction
(higher rate taxpayers only)
$2,500 at 40%$3,125 at 45%

Benefit

To Charity  $2,500*
To Donor  $2,500 to $4,950

*Although deductible for US tax purposes, there may be little or no net tax benefit due to the interaction with tax credits and equalisation policies.

**The extra benefit occurs as a result of UK Gift Aid rules that allow The Anglo-American Charity to reclaim a portion of UK tax paid by the donor from earned income from HMRC, upon receipt of a completed Gift Aid form from the donor. This benefit, after a deduction of a small administration charge (no more than 4%) will be passed along to charity.

You should consult with your tax advisor to confirm the net benefit which you will obtain for US and UK tax purposes.

Contact Us

We're not around right now. But you can send us an email and we'll get back to you, asap.