Tax efficient giving
Gift Aid is a UK government tax scheme, which enables the School to claim tax relief on donations that we receive from UK taxpayers. For each eligible gift, the UK government will add another 25% to the total at no cost to the donor. For example: A £100 gift with Gift Aid is worth £125 to the School.
Higher-rate UK taxpayers can also claim tax relief on their donation. The amount that they can claim back is the difference between the higher and basic rate tax.
Here are some examples of Gift Aid and higher-rate tax-relief*:
|Your gift||The School receives||40% taxpayers can reclaim higher rate relief of:||45% taxpayer can reclaim higher rate relief of:||Donor Recognition Society|
*Figures valid, September 2012
- In order for your gifts to be eligible for Gift Aid, you must be a UK taxpayer who will have paid an amount of Income Tax and/or Capital Gains Tax at least equal to the amount of tax that all the charities or Community Amateur Sports Clubs (CASCs) that you donate to will reclaim on your gifts for that tax year (currently 25p for every £1 you donate). N.B. Other taxes that you may pay, such as VAT or Council Tax, do not qualify for Gift Aid relief.
- Donations from companies are not eligible for Gift Aid. However, the company can treat the gift as an allowable expense, making a saving on Corporation Tax.
- Gifts made with Charities Aid Foundation (CAF) vouchers have already had Gift Aid claimed on them by CAF and passed to the charity, so further Gift Aid cannot be claimed.
Donating Shares to London Business School
London Business School welcomes and appreciates gifts of shares from our alumni and friends. Giving shares is a simple and tax-efficient way of making a donation to your selected charity or cause. Tax relief is available to UK taxpayers donating shares listed on the UK stock market, the Alternative Investment Market and recognised stock exchanges overseas. It is also available to units in a UK unit trust and shares in a UK open-ended investment company (OEIC).
Giving shares is one of the most tax-efficient ways to donate to charity. Donors can claim income-tax relief equal to the market value of the shares on the day the gift is made, plus any associated costs such as the broker’s fees. In addition, Capital Gains tax that you may have incurred on any increase in the value of the shares since you bought them will not apply.
Please contact us at Givingshares@london.edu for further information and the relevant paperwork for your gift of shares. Pilling and Co acting on behalf of London Business School will then liaise directly with your broker to ensure the smooth and efficient donation of your gift of shares.
Payroll giving is a scheme available through UK employers and enables you to make a charitable donation straight from your gross salary. It is the most tax-efficient method of making charitable donations. To make a payroll gift, ask your employer whether your organisation offers a payroll giving scheme. If it does, your employer will arrange for your payroll administrator to transfer the gift to London Business School from your gross pay.
For further information on setting up a payroll giving scheme in your company, please visit the Give as you Earn website.
Corporate gift matching schemes enable you to increase the impact of your gift to London Business School thanks to your employer matching it to a varying percent.
To find out if your company operates such a scheme please contact your Human Resources or payroll department who should be able to provide you with further information. If your company does have a matching scheme they should be able to advise you how to take part and make the value of your gift to London Business School even greater.
Click here for a list of organisations who operate a corporate matched giving scheme. If your company does not appear on this list, please contact your HR department. If you have any questions about corporate matched giving please email us at email@example.com
The American Friends of London Business School is a US public charity, described in IRC 501 (c) (3) (EIN# 52-1689073). This means that US taxpayers can offset a donation of cash or stock to the American Friends of London Business School against their tax bill. The American Friends of London Business School can also accept gifts of stock and shares and is eligible for tax-deductible gifts from corporate matching gift programmes.
London Business School is one of the recognised charities under Canadian Income Tax regulations. Donations made in support of the School will qualify for income tax deductions for Canadian taxpayers.
Supporters of the School in a number of European countries can make tax-efficient donations through the Transnational Giving Europe (TGE) network. This is a partnership of European charitable foundations that facilitates tax-efficient cross-border giving within Europe. The TGE network enables donors resident in one of the participating countries (both corporations and individuals) to financially support non-profit organisations in other member countries, while benefiting directly from the tax advantages provided for in the legislation of their country of residence.
For more information and to find your local partner, please visit the TGE page.