1. Who is the Anglo-American Charity?
The Charity was created in 2003 by a group of American expatriates in London who were seeking to
boost donations from UK based alumni of American schools and universities. We determined that the best way to encourage
donations was to make it more tax efficient for the donors by establishing a dual qualified charity.
Unlike earlier dual qualified charities set up to support Brown University among others, this Charity
can accept donations to a wide number of American and non-American charities, provided they support education, culture or
religion.
2. Why is making a gift to the Anglo-American Charity better than giving directly to either a UK or US charity?
1. if you give to a UK charity directly and you are also a American tax payer, the gift does
not qualify for a US tax deduction.
2. if you are a UK only tax payer and you give to a US charity directly, your gift does not
qualify for the Gift Aid Reclaim. Furthermore, you cannot reclaim the basic rate of
tax on the gift.
3. When should I make a gift?
To qualify for a US deduction, the gift must be received by the charity no later than December 31st
of the year for which the deduction will be taken.
A gift made on December 31st 2012 qualifies as a deduction for US purposes for the 2012 tax year
and for the 2012/2013 UK tax year
4. How does the US deduction work?
The US allows tax payers to make an itemized deduction for charitable contributions. The deduction
becomes smaller as your income increases.
5. What is Gift Aid?
The British Government encourages charitable giving by refunding a portion of the tax paid on
the gift to the receiving charity.
The Government grosses up the gift and refunds the "basic rate" of tax or 22%, For
example, X gives £1,000 to the Anglo-American Charity. To be able to make that gift, X needed to earn £1,282.05.
The extra £282.05 can be claimed by the charity from the Inland Revenue.
To make it even more attractive, if X pays the "higher" or 40% rate of tax, he can claim a
credit of £230.77 against his gift.
In order for us to reclaim the Gift Aid, the donor needs to complete, sign and date the Gift Aid
Declaration. It is most practical to fill out one form which remains in force on all gifts made to the charity until
revoked by the donor.
6. How do I know my gift will reach the intended recipient?
In
order to comply with U.S. and U.K.
law, the board of directors retains discretion over the grant making process to ensure that any suggested grant
falls within the purview of charitable activities in both countries. Any US or UK educational
institution should fall within the charity's guidelines.
7. How is the Anglo-American Charity compensated?
The Charity deducts 4% of the total value of the gift from the Gift Aid Reclaim. For example,
X has given £1,000. With Gift Aid, the donation is "worth" £1,282. We will deduct £51.28 from the reclaim as our
administrative fee.
The minimum donation from January 1st 2010 is £1,000.00.
8. What if I am only a US tax payer and I would like to make a gift to
a UK registered charity?
We can accept gifts from US only tax payers through our parent, The Anglo-American Charitable Foundation,
Donations can be made in US Dollars or Sterling. Please use the contact details for the Anglo-American Charity
Limited for questions on this type of gift.
9. What happens to any surplus revenue for the Charity?
If the Charity has a surplus in any given year, the excess is given to Plan UK, a charity assisting
disadvantaged children in the developing world.
