Tax Efficient Giving

The Gift-Aid scheme covers all cash gifts to The Prior Foundation (Registered Charity No. 281242) made by individuals who are UK taxpayers. Under the Gift-Aid scheme we can reclaim the basic rate tax from HM Revenue & Customs (HMRC) on the 'gross' equivalent i.e. the amount before the basic rate tax was deducted. The basic rate of tax is 20%; therefore this means that a £100 gift aid donation to us is effectively worth £125 at no extra cost to you. 

The Prior Foundation is able to reclaim 25p of tax on every £1.00 that you gave on or after 6 April 2008.

In addition if you pay higher rate tax, you are able to claim the difference between the higher rates of tax (40 and or 50 per cent) and the basic rate of tax (20 per cent) based on the total of the gift you have made plus the Gift Aid The Prior Foundation can claim on your behalf.

Gift Aid can apply to donations of any amount, made by cash, cheque, direct debit, standing order, debit or credit card, or even donations made by foreign currency (including Euro).

In order for The Prior Foundation to reclaim the tax you have paid on your donation(s) you must have paid or will pay an amount of UK Income Tax and/or Capital Gains Tax for each tax year that is at least equal to the amount of tax that all the charities that you donate to will reclaim on your gifts for that tax year. 

Below are some examples of how a donation, at whatever level you can support, can add up to a substantial sum and make a meaningful gift to The Prior Foundation. Making a Gift Aid declaration can significantly increase the value of your gift, as illustrated below, and higher rate tax payers can also greatly reduce the actual cost of their donation.

DonationTotal with the addition of Gift AidCost of gift to donor in 40% tax bracketCost of gift to donor in 45% tax bracket
£50£62.50£37.50£34.38
£100£125£75£68.75
£500£625£375£343.75
£1000£1,250£750£687.50
£5000£6,250£3,750£3,437.50
£10,000£12,500£7,500£6,875
£20,000£25,000£15,000£13,750
£50,000£62,500£37,500£34,375
£100,000£125,000£75,000£68,750
£500,000£625,000£375,000£343,750


For more information on Gift Aid scheme please visit the HM Revenue & Customs website at www.hmrc.gov.uk