Ways to make a tax-efficient gift

There are a number of different, tax-efficient ways in which donors can make a gift to the School.

Gift Aid
This scheme enables the School to recover the basic rate of tax paid on all donations received from donors who pay sufficient tax in the United Kingdom. All that is required is that the donors sign a simple declaration confirming that they have paid sufficient tax to cover the amount that will be recovered by the School on their donation. This means an extra 25p for every £1 donated to the School. As an example, Gift Aid will increase a donation of £1,000 to £1,250.

Tax Benefits for Higher Rates Tax Payers
The Gift Aid scheme enables donors who are higher rates tax payers (40 per cent and/or 50 per cent) to recover for themselves the difference between the basic rate of tax (currently 20%) and the higher rate of tax on the grossed up donation. For example, a donation of £100, is worth £125 to the School and it costs only £75 to a Donor who pays the higher rate of tax at 40 per cent, (£62.50 to a Donor who pays the higher rate of tax at 50 per cent).

Single gifts
The Gift Aid scheme covers all cash donations to the School by UK taxpayers. Under the scheme, the School can reclaim from the Inland Revenue 25p of tax in every £1 donated at no extra cost to the donor. Donors who pay income tax at the higher rate must include all their Gift Aid donations on their Self Assessment tax return if they wish to receive the additional tax relief due to them.

If you wish to make Single Gift, you can do so by cheque, electronic bank transfer, debit or credit card. Please ask the Development Office for the Single Gift donation form or, if you make an electronic bank transfer, please do not forget to sign the Gift Aid Declaration form, also available from the Development Office.

Regular Gifts
Regular Gifts by Standing Order mandate have replaced the old Deed of Covenant arrangements, but the tax benefits remain the same. Regular gifts are very important to the School because they provide a secure footing to plan ahead for the future and also they allow the donor to spread payments when most suitable: monthly, quarterly or annually. To set up a Regular Gift, all that is required is a Standing Order mandate accompanied by a Gift Aid declaration (both forms available on request from the Development Office). The tax benefits of regular giving are significant, both for the donor and for the School.

Gifts of listed shares and securities
The School welcomes gifts of listed shares and securities. Gifts of listed shares and securities by UK taxpayers attract full relief from Capital Gains Tax and, in addition, allow the donor to claim Income Tax relief on the full value of the shares or securities at the time they are transferred to the School - a double tax saving. For further information, please contact the Development Office who will be pleased to assist.

Gifts of property
Gifts in kind such as property and possessions avoid any Capital Gains Tax on the donor. To discuss how best to make such gifts, taking account of the particular circumstances of the donor, and how to maximise their value to the School, please contact the Development Manager, who will be pleased to assist.

Giving via the Charities Aid Foundation
Single gifts of any amount can be made by cheque or Charities Aid Foundation (CAF) voucher. Please make all cheques and CAF vouchers payable to Chigwell School and send them to the Development Office. The School receives no extra tax benefit from gifts made by cheque or CAF voucher.

Payroll giving
Under the Payroll Giving Scheme, employees can authorise their employer to deduct charitable donations from their pay before calculating Pay As You Earn tax. This means that the employee automatically gets tax relief on donations at his or her top rate of tax. There is no limit on the amount that can be given under the scheme. To find out more about payroll giving, please contact your Human Resources or Personnel department.

Matching gifts
Many companies operate gift-matching schemes. When an employee makes a gift to a registered charity, the company matches this (in full or in part). To find out if your company operates such a scheme, and to obtain a copy of their matching gift form, please contact your Human Resources or Personnel Department. 

Legacies
As a Charity, Chigwell School pays no tax on legacy gifts. In addition, a legacy to Chigwell may reduce the inheritance tax payable on your estate. When you make or update your will, please consider including a legacy to Chigwell School. Alternatively, you can make a gift by adding a codicil to your existing will. By doing so, you can help to ensure that Chigwell maintains its tradition of excellence for generations to come. The Development Office at Chigwell is happy to talk confidentially to Old Chigwellians and friends of the School who are considering leaving a legacy.

Tax-efficient gifts by companies
Companies can get tax relief on gifts of money to charities such as Chigwell School. When a company makes a qualifying donation to the School, the amount paid is treated as a 'non-trade charge' - this means that the company can make a claim in its Company Tax Return to set the amount of the donation against its taxable profits.
The company should keep normal accounting records to support entries on the Company Tax Return along with any other relevant documentation, for example correspondence with the School in relation to the donation such as a 'thank you' letter.

US Residents
If you reside and pay taxes in the US and wish to make a tax-efficient gift to Chigwell School, you can do so by following these steps:

1. Your donation/cheque should be made payable to the British Schools and Universities Foundation (BSUF) Inc. This is a charitable organisation recognised by the US Internal Revenue Service under Section 501 (c) (3) of their Codes. The BSUF's Federal ID Number is 13-616-1189. The BSUF has formally approved Chigwell School as a full member.

2. Your donation/cheque should be accompanied by the “Transmittal Form” , which you can download here. The Transmittal Form will express “a preference for Chigwell School”. Such preferences are respected by the BSUF, but all grants are made at its sole discretion, as required by the I.R.S.

3. After you have mailed your donation to BSUF at their New York address, kindly notify the School Development Office.

The BSUF is a charitable organisation founded over 40 years ago to enable US residents to support British Schools and Universities in a tax efficient manner. It represents over 100 famous Schools and Universities including Harrow, Uppingham, Sherborne, Bedford, Eton and Rugby, to name but a few, as well as Chigwell School. As a result, our membership will entitle you to receive full tax exemption status.

For further information please visit the BSUF website: www.bsuf.org

Thanking you

The School would be delighted to discuss with donors the most appropriate way of recognising a gift.

Contacting the Development Office:
Gill Punt
Chigwell School

High Road
Chigwell
Essex
IG7 6QF
Tel: 020 8501 5748
E-mail:development@chigwell-school.org

© 2014 Chigwell School High Road, Chigwell, Essex IG7 6QF (+44) (0)208 501 5700 | Chigwell School Incorporated Charity 1115098

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