Donation to US charity directly of $10,000
US Charity receives
$10,000
US tax deduction Nil to $3,500*
UK tax deduction
Nil
Donation to US
charity via The Anglo-American Charity Ltd.
of $10,000
US charity receives $12,820**
US tax deduction Nil to $4,490*
UK tax deduction
(higher rate taxpayers only) $2,310
Benefit
To Charity $2,820*
To Donor $2,310
to $6,800
*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 28% of UK tax paid by the donor from earned income from the Inland
Revenue, 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.
