CAF American Donor Fund
Helping employees who have dual tax status
If you have employees who are paying tax in the UK and US,
they could find that the US tax rules invalidate UK tax breaks on
charitable giving. The CAF American Donor Fund can help individuals
make the most of tax relief from both countries.
The CAF American Donor Fund is a great way for individuals
paying tax in both countries to claim Gift Aid in the UK and get a
tax deduction in the US.
How it works
Donors can make gifts from the CAF American Donor Fund to
charitable organisations anywhere in the world, provided they are
recognized as charitable under UK and US law.
It can make all the difference to the church or university that
individuals still like to support back home or to the arts group
that they have become part of in the UK.
Benefits
Using this CAF Fund can help your employees
to:
- use Gift Aid, where appropriate, increasing their donation to
charity by up to 28%
- claim the difference between basic and higher rate tax through
their UK tax return
- ensure tax deductibility in the US
This Fund is available to individuals who pay tax in both the UK
and US if their earnings exceed the worldwide foreign-earned income
threshold (currently $80,000).
Three ways to give
1. Single donations - individuals can
make single donations to the
Fund (Donor Advised Gift)
2. Regular contributions - individuals can make
regular
contributions to an account (Donor Advised
Fund Account)
3. Open a Trust Account - this allows
donations to charities from
the income and capital of an invested fund
(£100,000 minimum)
Employees can use cash, shares or gifts through payroll giving
schemes such as CAF Give As You Earn to make
contributions to the CAF American Donor Fund.
Next steps
To promote this to your employees:
Or direct your employees to our section for
individual donors.