Why is it good for donors?
Although registered in the UK, the Foundation’s sole shareholder is Princeton University and it is treated for US federal tax purposes as part of the University. This structure not only offers tax relief to UK taxpayers but also enables those who are liable for both UK and US tax to obtain tax relief in both countries on the same contribution. If you pay tax at the higher rate, you can claim back the difference between the higher rate of tax (45%) and the basic rate of tax (20%) on the total value of the donation.
UK taxpayers may also receive income tax relief and exemption from capital gains tax on the value of securities that they give to the Foundation. Those who are also liable for US tax may receive similar benefits on their US tax returns.
Additional estate-related relief benefits are possible. Please visit the HM Revenue and Customs website for further information.
Why is it good for Princeton?
Making a gift using the Gift Aid Scheme increases the amount of the gift by enabling the charity to reclaim the basic rate of tax on the gift. Currently, for every £1 donated, the charity can reclaim approximately an additional 25p from HM Revenue and Customs. This means that a £1,000 gift is worth £1,250 to the charity.
When can the Gift Aid Scheme apply?
The Gift Aid Scheme applies to charitable gifts of cash made by UK taxpayers where that taxpayer’s income and/or capital gains tax liability in the year the gift is made is equal to or greater than the amount the charity will claim for the gift. The UK tax year runs from 6 April to 5 April. For more information, please consult your tax advisor or visit the HM Revenue & Customs website.
How do I apply?
Complete a Gift Aid Declaration Form and include it with your gift payable to the Princeton Charitable Foundation Limited. The Foundation will then apply to HM Revenue and Customs to claim a portion of the tax you have already paid. There is no limit to how often Gift Aid relief can be claimed so long as you have paid (or are liable to pay) sufficient UK income tax and capital gains tax to cover the amount reclaimed by the Foundation; one gift declaration can cover all current and future gifts to the Foundation.
What if I claim at the higher tax rate?
If you pay the higher rate tax, you can claim the difference between the higher rates of tax (40% or 45%) and the basic rate of tax (20%) on the gross value of your donation to the charity.
For example, if you donate £100, the gross value of your donation to the charity is £125. If you pay tax at the 45% rate, you can claim back 25% of this (£31.25) for yourself. You can make this claim on your Self Assessment tax return. For more information on Gift Aid qualifications, please visit the HM Revenue & Customs website.
What types of gifts qualify for Gift Aid?
Gifts can be made by cash, check, credit card, or wire transfer. Gifts not generated exclusively from individual personal income, such as gifts of stock, do not qualify for Gift Aid; nor do gifts received from a corporate entity, foundation trust, or payroll deduction. However, the Foundation can still accept such gifts and these may attract other types of tax relief.
We regret that the UK Foundation is unable to accept class dues.
What types of gifts are accepted by PCFL?
Gifts by check, credit card, and wire transfer, as well as gifts of stock are accepted. Legacies and certain gifts of real property (land) are also eligible for UK tax relief.
What currency is accepted?
Pounds sterling or US dollars
Will my company match my gift through the Gift Aid Declaration?
If your employer matches gifts to UK charities, your gift should be matched.
Does a gift I make jointly with someone else qualify for Gift Aid?
Yes, but you must tell the charity how much is from each of you, and you each need to sign a separate Gift Aid Declaration Form if the whole amount is to qualify.
What happens after I give?
The Foundation will send you a letter of acknowledgment for your original gift. The Foundation will collect the appropriate Gift Aid from HM Revenue & Customs. Finally, Princeton will send all donors a letter of acknowledgment (for both the gift and Gift Aid amount, if applicable) to be used for US tax purposes.
Whom do I contact to make a gift to PCFL?
Eileen Flood, Administrator
Princeton Charitable Foundation Limited
19 Norcott Road
London N16 7EJ