How To Give
At Prism the Gift Fund, we make our donors aware of all tax reliefs available when donating. We want donors to make an informed decision on their contribution, and factoring in tax reliefs often makes people give more.
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.
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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.
With Prism the Gift Fund US, donors (individuals, corporates and foundations) based in the United States can make a donation to Prism's American Friends Fund at KBFUS. KBFUS is a US. public charity, within the meaning of Sections 501(c)(3) and 509(a)(1) of the Internal Revenue Code. US donors may make charitable contributions to Prism the Gift Fund US, and donors may be eligible for a US income tax deduction to the extent permitted by US tax law for their contributions. US Donors can either create an “Own Name Foundation” at Prism as a tax effective UK hub for their giving, or grant to a Collective Fund at Prism. Utilising Prism's US service also means that donors can onward gift the funds to an international organisation.
Get in touch with the team to understand our price structure.