Donors may wish to take advantage of tax relief to allow your gift to go further. You may wish to make a single gift or structure your support through agreed instalments. Whichever option you choose, 100% of your gift will go to the project which you wish to fund.
Charitable status and tax-efficient giving
The University is an ‘exempt charity’ under Schedule 3 of the Charities Act 2011 which means your gift could be enhanced through tax-efficient giving. The University does not have a registered number issued by the Charities Commission but is in law a charity by Royal Charter, granted in 1904. Our reference number with the charity division of HM Revenue and Customs is X6861.
UK taxpayers can make their gifts go further with Gift Aid which enables the University to claim tax relief on donations from UK taxpayers. For every £1 donated, 25p in reclaimed tax is added. This means that an £8,000 gift with Gift Aid is worth £10,000 to the University. (See note below)
Higher Rate Taxpayers
Higher rate (40%) and Additional Rate (45%) taxpayers can also reclaim the difference between the basic rate and their top rate of tax on the value of their gift.
- llustration – how a donor paying UK tax at 40% could support a £10,000 scholarship at a net cost of £6,000: A gift of £8,000 grows to £10,000 when Gift Aid is added at the basic rate of tax. The donor can claim higher rate relief of £2,000 which is the difference between basic rate and higher rate tax. Once this relief is deducted from the original gift the net cost to the donor is reduced to £6,000. The scholarship could be funded outright with a gift of £8,000 or through three annual instalments of £2,666 which would be at a net cost of £2,000 per annum.
- Illustration – how a donor paying UK tax at 45% could support a £10,000 scholarship at a net cost of £5,500. A gift of £8,000 grows to £10,000 when Gift Aid is added at the basic rate of tax. The donor can claim additional rate relief of £2,500 which is the difference between basic rate and additional rate tax. Once this relief is deducted from the original gift the net cost to the donor is reduced to £5,500. The scholarship could be funded outright with a gift of £8,000 or through three annual instalments of £2,666 which would be at a net cost of £1,833 per annum.
Giving stocks and shares
Share giving provides donors with tax relief on both income and capital gains tax. Share gifts qualify for tax relief equal to the market value of the shares on the day the gift is made, including associated costs such as broker fees.
- Illustration – how a share gift can offer tax relief: An individual who pays tax at the higher rate of 45% and who makes a gift of shares valued at £10,000, would reduce their taxable income by this amount and their income tax by up to £4,500 for the year. Additionally, the donor would not have to pay Capital Gains Tax (CGT) on any increase in the value of the shares since they were bought.
We offer a range of opportunities for companies of all sizes to philanthropically support the University of Leeds. Such support can be part of broader partnership activities between a company and the University, positioned to develop mutual benefit around developing talent and research priorities.
Corporate Development Manager Sarah Disney would be happy to talk to you more about how your company might benefit from working with the University of Leeds. Email Sarah or call 0113 343 9037
Have you considered supporting the University beyond the Campaign through your estate? A gift in your will would make a big difference to the future of your University. Legacies officer Caroline Bartholomew would be delighted to tell you more about the options for legacy gifts and how you might remember Leeds. Email Caroline or call 0113 343 2347.
Outside the UK
USA – The North American Foundation for the University of Leeds (NAFUL) is a non-profit 501c3 organisation. Donations to the Foundation are tax deductible to the extent allowed by law.
Canada – The University of Leeds is listed as a prescribed University under section VIII of the Canadian income tax regulations. This means that Canadians can claim a non-refundable tax credit when they make a gift to Leeds.
Europe – The University is recognised as a charitable body by many European states. Gifts from donors living in these states can be made through Transnational Giving Europe, a partnership of Foundations and Associations which facilitates tax-efficient cross-border giving.
To talk about making a gift, please contact the Campaign Team on 0113 343 6109 or firstname.lastname@example.org.
“If there’s a choice between paying money to the taxman or to Leeds, then there’s really no choice at all.” In this video Ray Stanbridge (Economics and Accountancy 1967) explains why he now chooses to give back to the University – and talks about the tax advantages of doing so.
Your donations to charities or Community Amateur Sports Clubs will qualify for gift aid as long as they do not total more than four times what you have paid in tax in that tax year (6 April to 5 April). The tax could have been paid on income or capital gains. You must tell the charities you support if you stop paying enough tax. Further information is available from HM Revenue and Customs here.
If you think tax relief is something you could take advantage of, you are advised to seek advice from the financial services sector on your particular circumstances. If you are a UK donor and do not have a direct contact in the financial services sector (an accountant for example) HM Revenue and Customs can also provide guidance as can Citizens Advice.