The Tax Advantages of Donor-Advised Funds
Please Note: The information provided here is general and educational in nature. It is not intended to be, nor should it be construed as, legal or tax advice. NPT-UK does not provide legal or tax advice. NPT-UK strongly encourages you to consult with your tax and/or legal advisors before making charitable contributions.
NPT-UK is a UK/US dual qualified charity. Donations to NPT-UK are recognised for tax purposes in both countries simultaneously. NPT-UK is an independent UK charity (charity number 115376) and is recognised by the IRS as a disregarded entity of the 501(c)(3) public charity National Philanthropic Trust in the US (EIN 23-7825575). NPT-UK offers donor-advised fund accounts for donors who wish to manage their giving over time and designated funds for donors who wish to make one-time gifts.
A cash contribution to a NPT-UK donor-advised fund is eligible for Gift Aid. If you have made a Gift Aid Declaration, NPT-UK will claim Gift Aid on your cash contribution and credit your donor-advised fund account for the amount of the reclaimed Gift Aid. Currently, for every £1 contributed, NPT-UK can claim an extra 25 pence in Gift Aid. For more information, see How Gift Aid works.
UK Tax Relief
As part of the Gift Aid scheme, donors who are higher-rate or additional rate taxpayers may claim the difference between their tax rate and the basic tax rate on the gross value of the contributions (including any Gift Aid) to NPT-UK.
In the UK, donors may elect to back-date cash donations made on or before 31 January each year to the previous UK tax year, provided they have not yet made their UK self-assessment tax return.
US Tax Deduction
Donors are eligible for an itemised income tax deduction in the US on the date that they irrevocably donate assets to NPT-UK. Any deduction will depend on the type of asset contributed and the donor’s personal financial circumstances.