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Cross-border giving

CONNECTING UK CHARITIES WITH US DONORS

What is the CARES Act and why could it be important for your charity?

At CAF we have a close connection with our CAF America partners.

CAF America, a US public charity, is part of the CAF Group.

We are aligned by a shared purpose to support charities, like yours, to deliver greater impact for the communities they serve. It is through connection and collaboration that we grow stronger and more resilient. This is why, our expert Charity team are here to actively support UK charities to: 

Build new connections


We're uniquely placed to support cross-Atlantic connection between UK-based charities and US donors, enabling US donors to make tax-effective donations to UK charities. Get in touch to tap into the expertise of CAF and CAF America.
Speak to our Charity Team

Seize opportunities 


We can support and advise charities on the philanthropic landscape in the USA.  Enhanced charitable giving incentives afforded by two US bills: the CARES Act and the Consolidated Appropriations Act 2021, are recent exemplars of shifting opportunities for both donors and charities. 

The CARES Act 

What is it? 

The Coronavirus Aid Relief and Economic Security Act, commonly known as the CARES Act, was signed into US law on 27 March 2020. The Act provided significant temporary tax relief and enhanced charitable giving benefits for individual US donors, as well as increased standard tax benefit percentages to incentivise both corporate and private philanthropy.

 

The Consolidated Appropriations Act 2021 

What is CAA? 

The Consolidated Appropriations Act of 2021 (CAA) came into force on 27 December 2020.  The CAA expands on the benefits afforded by the original CARES Act and has extended these benefits for an additional year. The CAA has allowed charitable donors and charities to continue to reap substantial charitable giving benefits until the end of 2021.

Why Do The CARES ACT AND CAA
matter for charities?

The CARES Act and CAA 2021 have opened a new window of opportunity for UK charities to connect with US philanthropists and donors.

At CAF we have a unique connection with our CAF America partners. Together, we are at the forefront of philanthropy services for dual UK and US taxpayers. But it’s not only charitable donors that stand to benefit from this well-established Anglo-American relationship. Thanks to CARES and CAA, US taxpayers can now make the most of significant tax incentives for charitable giving throughout the rest of 2021, and this charitable giving can extend beyond solely US-based charities. Donors may opt to give more to charity as they are eligible for a higher percentage of tax benefits. 

Just as the Covid-19 pandemic has shaken individual communities, it has also showcased our connectedness as one global society. Facilitating and supporting the power of giving globally is perhaps as important now as it has ever been.  


Read CAF America's blog

CAA benefits for US taxpayers - potential donors for your charity - include: 

  • A universal charitable deduction up to $300 for individual US donors, who do not itemise their deductions on their tax bill or $600 for couples filing jointly.
  • An increase of the standard tax benefit for individual taxpayers who do itemise their deductions from 60-100% of their adjusted gross income on their federal income tax return.
  • An increase of the standard tax benefit for corporations who do itemise their deductions from 10% to 25% of their adjusted gross income on their federal income tax return.

Interested to dive into the detail? 

Earlier this year CAF America hosted an informative webinar on the CARES Act and CAA. It outlines the specifics of the tax benefits and regulations surrounding when donation qualifies. 
Watch the webinar     

Two ways UK charities can receive donations from US donors ? 

1. The CAF America Friends Fund

The CAF America Friends Fund is a cost-effective, minimal stress solution for non-US-based charities who are looking to elevate the support they receive from US donors.

A key advantage of the CAF America Friends Fund is that it eliminates the high cost of operating a public charity in the US and the related administrative burdens, whilst still offering charities a) the necessary technical infrastructure to receive US donor funds, and b) peace of mind from a regulatory and compliance standpoint in the knowledge that CAF America takes care of all US administrative work. Donations received through a CAF America Friends Fund are always tax deductible but now are also eligible for tax relief benefits until the end of the 2021 as secured by the CARES Act and CAA. 

Could the CAF America Friends Fund be right for your charity? Contact our expert team to start that conversation. 

2. Through a Donor Advised Gift

Donor Advised Gifts (DAGs) are the perfect solution for US donors who would like to give internationally, including to the UK,  without establishing a Fund at CAF America.

DAGs enable all types of US donors, including individuals, foundations, and corporations, to make single donations to their chosen charities as desired. With DAGs donors make a single tax-effective gift to CAF America and recommend that the funds be granted onward to a foreign charitable organisation of their choosing.

Learn more about DAGs

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