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 and ensures that
- use of Gift Aid, where appropriate, increases the value of your donation to the British Friends by up to 25%;
- donors can claim the difference between basic and higher rate tax through their UK tax return;
- donors can claim tax deductibility on their donation in the US.
Donor gives through CAF | Net benefit to charity | Tax gain to charity | UK Tax benefit to donor | US Tax Relief* | Tax gain | Net cost to US citizen | |
---|---|---|---|---|---|---|---|
40% tax payer with tax relief | £1,000 | £1,250 | £250 | £250 | £396 | £896 | £354* |
45% taxpayer with tax relief | £1,000 | £1,250 | £250 | £312 | £396 | £562 | £292* |
*US gives relief at a maximum of 39.6% for charitable contributions provided they do not exceed 50% of adjusted gross income.