Giving Cash

Gift Aid has a split tax incentive between the donor and the charity. The charity is eligible to claim 25% extra on a donation from HMRC. If the donor pays over the basic rate of tax, they are eligible to claim the difference between their and the basic rate of tax on the gross donation.

Though most people have heard of Gift Aid, few know the extent of its application. You can use our Gift Aid calculator to see how much creating a Prism account would cost you (before fees) if you utilised Gift Aid effectively. For example, a donation of £100,000 becomes £125,000 after application of Gift Aid. This would cost a 45% taxpayer £68,750 after making a Gift Aid reclaim on their tax return.

This Gift Aid tax incentive is also relevant for resident non-domiciled individuals, especially with the option of using Prism. Donors can gift offshore funds to Prism Offshore, and still Gift Aid against their UK income without having to remit the money. If they earn enough income in the UK to pay a higher rate of tax, there is also the opportunity to reclaim from HMRC, and remember, with a Prism account you can gift to organisations all over the world.

Cash Donation £XX,XXXX

With this donation..

  • £ XX,XXXX will be reclaimed by the charity through gift aid.
  • £ XX,XXXX could be claimed back by you from HMRC.
  • £ XX,XXXX would be the total received by the charity.
  • £ XX,XXXX will be the total cost of your donation to you.

Share Giving

Donors can make gifts of shares listed on any stock exchange to charitable causes. Gifts of shares come with tax incentives: not only are the gifted shares not liable to Capital Gains Tax, but the donor can also claim full Income Tax relief at their highest rate.

By gifting shares to Prism, the donor is committing any income generated from those shares, and the shares themselves, to charity. The donor can choose not to sell the shares immediately, and their charitable pot can be contributed to by annual dividends from the shares, as well as the eventual sale of shares at the donor’s discretion. The donor receives tax relief upon donating to Prism, but there is no obligation to decide where to onward gift straight away.

We also look at other assets such as property or art on a bespoke basis. The relief works in the same way. Take a look at our calculator to see what a gift of assets could mean for your tax bill.


Gifts of shares are not subject to any Capital Gains Tax liability

XX,XXX shares at £XX each

With this donation..

  • £ XX,XXXX Can be claimed as tax relief (as a 45% tax payer).
  • £ XX,XXXX will be added to the Prism the Gift Fund pot value (before fees).
  • £ XX,XXXX will be the total net cost to you.

Legacy Giving

In April 2012 HMRC introduced a reduced Inheritance Tax rate of 36% to those leaving a gift of 10% or more of their taxable estate to charity. The remainder of the taxable estate following the donation will be taxed at 36% rather than the 40% rate if no gift is made. Take a look at our calculator to see what that could mean for you.

Prism’s structure allows for a gift to be made to charity in a will, and the chosen beneficiaries of the will to be named as executors of the charitable account within PtGF.

Traditionally, these gifts have been made to one specific cause, or endowed into a charitable trust or grant making foundation. Using a Prism account is quicker, cheaper, and more flexible.

 

Your tax free amount is

£325,000

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Inheritance tax

With no donation ...

  • Inheritance Tax Rate.
  • £ XX,XXXX goes directly to beneficiaries.
  • £ XX,XXXX goes to charity through Prism the Gift Fund.
  • £ XX,XXXX goes to HMRC in Inheritance tax.

With a 10% donation ...

  • Inheritance Tax Rate.
  • £ XX,XXXX goes directly to beneficiaries.
  • £ XX,XXXX goes to charity through Prism the Gift Fund.
  • £ XX,XXXX goes to HMRC in Inheritance tax.

Social Investment

Social enterprises are surplus-generating businesses that put social impact at the heart of what they achieve. The donors who engage in funding these enterprises look for both a social and financial return on their investment. Well-known examples of social investment projects include The Big Issue, The Fifteen Foundation, the Eden Project, and Peterborough’s Prison Bond.

Using Prism to invest in social enterprises is a great way of starting a positive cycle of investment and return. As well as utilising Gift Aid, and therefore increasing the size of your Prism account (and investment) by 25%, any returns will flow back into your account to be gifted out to other causes, or invested again.

We are experienced in making loans and investments in social businesses on behalf of several clients who look for both a financial and a social return.