TAX REFUNDS

As a UK registered charity, all donations from UK residents qualify for tax relief. The British Friends will collect the tax refund on your donation and add this to your gift.
Assuming that the donor is paying tax at the higher level, the benefit of giving through the Friends is dramatic, the value of the gift is increased by two-thirds! Compare the difference – a saving of £744

	Donor gives to charity	Net benefit to charity	Tax gain to charity	Tax benefit to donor	Tax gain	Net cost to donor
Without tax relief	£1,000	£1,000	£NIL	£NIL	£NIL	£1,000
With tax relief	£1,000	£1,282	£282	£256	£538	£744

Where an individual paying tax at 40% makes a donation of £1,000 to us, we are entitled to reclaim tax from the Inland Revenue of £282 so that the charity actually receives £1,282; £1,000 from the donor and £282 from the Inland Revenue. In addition the donor can obtain a tax repayment from the Inland Revenue of £256 (20% of £1,282), reducing the net cost to £744.

Tax effective giving for US and dual registered (UK and US) tax payers

The British Friends is now approved by the CAF Donor’s Fund Eligibility Committee to receive grants. For dual US-UK tax payers giving through the CAF American Donor Fund allows donors to get a tax deduction in both the US and UK. Donor can give through the CAF American Donor Fund if they pay tax in both the UK and US and if earnings exceed the worldwide foreign-earned income threshold (currently $80,000).

For more information and Gift forms see the below website link, or request information from the British Friends of HBS (e-mail: dwilson@aifs.co.uk)

http://www.cafonline.org/default.aspx?page=7141&btnServices=&