Benefits of Giving

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 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. Gifts of securities incur an additional processing fee of $100.

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.

8. Donors may choose to check the box on the Gift Form and pay a slightly higher fee percentage of 6% which AACL will pass on to our chosen charity Plan UK. This is a voluntary contribution of a portion of the tax reclaimed on the gift through Gift Aid.

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.