Tax-Effective Giving

There are a number of ways of making a tax-efficient gift which benefit the College while at the same time reducing the amount of tax paid by the donor.
 

UK Donors

Gift Aid

Gift Aid is a scheme promoted by the UK government to incentivise charitable giving. It allows King’s to reclaim a sum equivalent to the basic income tax you would have paid on the money used to make a gifts or gifts in any given Tax Year, so long as you have paid an equal or greater amount of income tax.

If you are liable for income tax at higher brackets, you can also claim a personal tax relief equivalent to the difference between the rate you pay HMRC and the basic rate of 20%. The example below gives the tax rated applicable for England, Wales and Northern Ireland. There are different rates in Scotland which will affect the tax relief available.

Rate Basic Gift Gift Aid Total to King's Tax Relief Cost to you
20%  

£1000

£250

£1250

£0

£1000

40%

£1333.33

£333.33 £1666.66 £1333.33 £1000
45%

£1454.45

£363.64

£1818.19

£454.55

£1000

 

For further details about other qualifying donations, please see the Government website

Payroll Giving

UK taxpayers who are paid under PAYE (Pay As You Earn) can maximise regular donations to the College through payroll giving. Gifts made through this scheme are taken directly from the gross pay, giving the benefactor immediate tax relief at the highest rate of tax for which they qualify.

If you are a UK taxpayer and are interested in this method of giving, please request an application form from your employer, detailing your wishes to donate to King’s College Cambridge. The employer will then deduct a gift directly from your salary before tax is applied.

Shares and property

Share giving is one of the most generous tax reliefs available to benefactors, combining relief on income and capital gains tax. In the UK, 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.

You will need to complete a stock transfer request and inform the College that you instigated this transaction. Alternately you can sell the shares and donate the proceeds, and claim the relief provided an agreed process is recorded with the College’s agreement. Please do contact us first if this is your preferred path.

Gifts of art, antiques, important documents, musical instruments and other valuable items may also attract both income tax and capital gains tax relief. If you intend to make a gift of this nature to the College, please do contact the Development Office to ascertain if it can be accepted. Due to the constraints of space, the College must exercise discretion in which gifts can be accepted, and reserves the right to sell donated items for the College’s charitable purposes.

For more information see the Government's website.

Charities Account

Several non-profit companies exist to provide charitable accounts which allow you to deposit cash and make regular donations to charities of your choice in a tax-efficient manner. We work most often with the Charities Aid Foundation, but several other national and regional organisations offer similar services.

Legacies and Bequests

Gifts to charity are exempt from Inheritance Tax (IHT) in the UK, and the government provides a further incentive when you leave 10 per cent or more of your net estate to charity, which may reduce the overall rate of IHT for your whole estate.

US Donors

Cambridge in America (CAm) is a 501(c)(3) registered public charity with the IRS and allows US donors to make tax efficient gifts which the Directors of CAm grant to King’s College at request of the donor.

Cambridge in America supports many types of giving, including regular donations, planned giving and gifts of stock and other investments. Their website details comprehensive information on these methods, and the appropriate forms to complete or professionals to contact should you need advice.

US donors may benefit from several different tax-efficient methods when considering a bequest to King’s. Please visit the Planned Giving section of Cambridge in America, our 501(c)(3) partner institution, for the latest information.

Canadian Donors

Canadian donors may benefit from tax relief for making charitable gifts to King’s College. The University of Cambridge is a registered charitable donee with the Canada Revenue Agency and can issue tax receipts on behalf of King’s College, which is regarded as a constituent part of the University.

Canadian donors may benefit from tax relief for making charitable gifts by bequest to King’s College. The University of Cambridge is a registered charitable donee with the Canada Revenue Agency and can issue tax receipts on behalf of King’s College, which is regarded as a constituent part of the University. Please contact us if you wish to leave a gift to King’s in your will so that we can verify the latest guidance.

European Donors

Transnational Giving Europe

Transnational Giving Europe (TGE) is an alliance of charitable foundations across many European countries which allow donors to receive local tax benefits when making a donation (and in some cases, bequests) to a recognised charity in another member country.

There can be a little effort needed to set up an account, and gifts can take several weeks to come to us. As such we recommend this route if you are considering a regular gift to King’s or if the tax benefits make it favourable to do so.

As qualifying donations and tax relief will vary from country to country, please contact your local foundation, found on the TGE website.

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Donations to the College can be made as a one-off gift or regular donation; as a gift of shares, land, buildings or possessions; or as a bequest in a will.
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We welcome donations of all sizes to important causes such as our access programme, graduate scholarships or our renowned Chapel and Choir.
We are honoured to recognise all gifts to the College and would be pleased to accept you into one of our donor circles.
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Your donations have a direct impact on the College's ability to prosper as a centre of learning and research for future generations.

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