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.