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Donor-Advised Fund FAQs

If you have a question that isn’t covered in the sections below, please contact us at +44 (0)800 133 7540.

Overview
Contributions
Tax Information
Grantmaking

General

Who is NPT UK?

NPT UK is an independent UK registered charity (charity number 1181128) providing uniquely flexible donor-advised funds.

We are dedicated to providing philanthropic expertise to donors, foundations and financial institutions, enabling them to realise their philanthropic aspirations.

Opening a Donor-Advised Fund Account

Who can open a donor-advised fund account?

Individuals, families, companies, foundations, and other entities can start a donor-advised fund account by contributing assets.

How much do I need to open a donor-advised fund account?

The minimum required to open a donor-advised fund account with NPT UK is £250,000 or more. Once your account is established, you can make subsequent contributions of £2,000 or more.

Can I choose the name of my donor-advised fund account?

Yes. You can choose any name for your donor-advised fund account. You can even call it a Foundation or Charitable Trust. Most donors choose a name that reflects the main purpose of the account such as “The Smith Educational Fund.” Some donors select a name that helps them remain anonymous.

How quickly can I create a donor-advised fund account?

At NPT UK, it usually takes less than 48 hours. Once you submit a completed Donor Application, your account is established and ready to receive contributions.

Can 'non-doms' open a donor-advised fund account?

Individuals with non-domiciled (‘non-dom’) tax status in the UK can start and use a donor-advised fund tax-effectively by contributing assets to NPT UK offshore.

If you have this tax status and make a donation directly to a UK charity using offshore funds, the donation may be considered ‘remitted income’ by UK tax authorities.

NPT UK can accept your contribution offshore and it will not be considered ‘remitted income’ by UK tax authorities.

NPT UK provides you with a confirmation of your contribution(s) that serves as a receipt for UK tax purposes.

Your gift may benefit from Gift Aid. To qualify for Gift Aid, donors must make cash contributions. Under the Gift Aid scheme, donors must pay enough UK income and/or capital gains tax in each tax year to cover the amount of tax that charities claim on your behalf for that tax year. The Remittance Basis Charge paid by non-domiciled taxpayers qualifies as UK income tax for Gift Aid purposes.

Managing a Donor-Advised Fund Account

Can my children be involved with my donor-advised fund account?

Yes. You can name them as an advisor or successor advisor to your account. They can legally assume these roles as soon as they are 18 years old. If the Successor Advisor is a minor, NPT UK may require that a legal guardian make grant and investment recommendations.

Can my donor-advised fund account have multiple successors?

Yes. Your account assets can be split between multiple successors. Or, you can have your successors share in the advising responsibilities.  Your successor advisors can also name their own successor advisors. This option offers the potential for your donor-advised fund to exist in perpetuity.

How are the assets in my donor-advised fund account invested?

You can recommend an investment strategy from a variety of options. If your DAF has a balance greater than £500,000, you and your advisor(s) can create a bespoke investment account with NPT UK’s approval.

What types of fees are charged to my donor-advised fund account?

Each DAF is subject to an annual charitable administration fee, which is deducted by NPT UK to cover DAF operating expenses such as grantmaking, recordkeeping, annual audits, tax filing, quarterly statements and other legal and fiscal responsibilities. NPT UK determines the amount of these fees by applying a fee schedule against the average daily balance of your DAF account at the end of each month.

Investment management fees vary by third party investment manager and are deducted for each DAF.

What happens to my DAF account if there are no successors or charitable beneficiaries?

You can designate one or more charitable organisations as account beneficiaries. If no Successor or Charitable Beneficiary is named in the Succession Plan, the balance of the donor-advised fund account remaining at the death, resignation or other removal of the last Advisor will be transferred to the NPT UK Giving Fund.

Can NPT UK refund any money to me once I have made a contribution into my donor-advised fund account?

Your contribution to your NPT UK donor-advised fund account is an irrevocable contribution and becomes a charitable asset. Therefore, all NPT UK donor-advised fund account balances must be granted to charitable organisations.

Assets You Can Contribute and Definitions

What types of assets can I contribute to my donor-advised fund account?

NPT UK accepts a wide range of assets, including:

  • Cash
  • Shares or securities which are listed on any recognised stock exchange. These include London Stock Exchange (LSE), Alternative Investment Market (AIM), NYSE, NASDAQ, and any other recognised overseas stock exchange.
  • Other, more illiquid assets, such as alternative investments, tangible personal property and real estate. Please contact us to discuss any proposed gift.
  • Transfers and grants from other donor-advised fund programmes.
  • Transfers and grants from charitable trusts and foundations.
  • Bequests from wills

NPT UK strongly encourages you to consult with your tax advisor or legal advisor before making a charitable contribution.

At what point is a contribution considered a charitable donation?

All gifts to NPT UK are irrevocable and must be completely given, without reservation of benefit, in order to qualify for charitable tax reliefs. A contribution becomes a donation when the asset is “out of the donor’s control.” This is determined by the type of asset you contribute, when and how it is transferred to your NPT UK donor-advised fund account.

What is the best type of asset that I can contribute to my donor-advised fund?

Cash and gifts of shares are the most common contributions.

Cash contributions are eligible to benefit from Gift Aid in the UK. NPT UK will claim Gift Aid on your contribution and apply the additional amount (25% of your net contribution) to your donor-advised fund account.

If you pay over the basic rate of tax in the UK, then you are eligible to claim the difference between your tax rate and the basic rate of tax on the gross donation.

A gift of shares has a double tax benefit.  If gifted to your donor-advised fund account, you do not pay any capital gains tax on shares that have increased in value and you can claim income tax relief on the total fair market value of the contribution on your self-assessment tax return.

Can I donate from my salary or my bonus to my donor-advised fund via payroll giving?

Payroll Giving is a UK scheme which allows you to donate to charity from your pre-tax salary. Payroll Giving donations are deducted before tax so each £1,000 you give will only cost you £600 if you’re a higher rate (40%) taxpayer or £550 if you’re an additional rate (45%) taxpayer. If you would like to support your donor-advised fund by giving in this way, please check with your payroll or HR department to learn if your company already operates a payroll giving scheme. If it does, simply ask them for a form and complete it with your chosen amount and name NPT UK, charity number 1181128, as your charity.

Contribution Amounts and Frequency

How much do I need to open a donor-advised fund account?

The minimum required to open a donor-advised fund account with NPT UK is £250,000 or more. Once your account is established, you can make subsequent contributions of £2,000 or more.

Are additional contributions to my DAF account eligible for UK tax relief?

Yes.

To benefit from Gift Aid and higher rate tax relief on your UK tax return, your UK income and/or capital gains tax liability for each tax year must be equal to or greater than the amount of Gift Aid claimed on your behalf by charities for that tax year.

How often can I make contributions to my donor-advised fund account?

You may contribute £2,000 or more at any time. Many donors like to add to their donor-advised fund accounts immediately after they recommend a grant. Others prefer to make regular contributions and build up the account for future grantmaking.

When should I make a contribution?

The UK tax year runs from 6th April in one year to 5th April in the next. In the UK, to qualify for tax relief, an eligible gift may be received by NPT UK by 31 January after the end of a tax year and still be counted towards that tax year as long as you have not submitted your Self-Assessment tax return. It is important to consult with your tax advisor since they may be able to help you plan your giving to maximise tax reliefs.

Contribution Management and Reporting

Will I get a receipt for my contributions?

Yes. NPT UK provides you with a  confirmation of your contribution(s) that will be a suitable record for your UK taxes.

With a donor-advised fund account, you can immediately claim tax relief on your contribution.

Because tax relief is available immediately for eligible contributions, grants made from your donor-advised fund account are not subject to additional tax advantages.

What happens to my contribution after it is accepted by NPT UK?

You may recommend an investment approach for your DAF assets.

If your contribution is liquid, we invest it within several business days of receiving it. If your contribution is illiquid, we invest it within several business days of receiving proceeds from its sale.

Tax Advantages

What type of tax advantages might be associated with my contribution?

For detailed information, please visit our Tax Advantages page.

What is Gift Aid?

Gift Aid is the name of the UK tax incentive for cash donations. Gift Aid is a split tax incentive between the donor and the charity.

The charity, NPT UK, can claim 25 pence in Gift Aid for every £1 contributed. NPT UK will claim Gift Aid on your cash contributions and credit your donor-advised fund account for the amount of the reclaimed Gift Aid.

If a donor pays over the basic rate of tax, they are eligible to claim the difference between their tax rate and the basic tax rate on the gross donation when completing their Self-Assessment tax return.

For more information about Gift Aid, see How Gift Aid Works: A Case Study and visit the Gift Aid calculator on our DAF Tax Advantages page.

Does my tax relief depend on the type of asset I contribute?

Cash: You may claim the difference between your tax rate and the basic tax rate on the gross value of the contributions to NPT UK if you are a higher or additional rate taxpayer in the UK.

Publicly-traded shares: You may claim income tax relief on the total fair market value of the contribution on your self-assessment tax return (and the transfer will be free from capital gains tax).

How are capital gains treated for gifts of appreciated shares?

Your gift of appreciated shares does not create a capital gains tax liability for either NPT UK or the donor.

Is the income accrued in my DAF account eligible for additional charitable tax relief?

No. Only contributions to NPT UK are eligible for tax relief. Growth within your donor-advised fund account is not eligible for additional tax relief.

What are the limitations on tax relief?

There are no limits on the amount of tax relief that can be claimed on your tax return for your charitable contributions.

However, please note that your UK income and/or capital gains tax liability for each tax year must be equal to or greater than the amount of Gift Aid claimed for that tax year.

Please contact your tax advisor to evaluate your tax relief limits.

 

Tax Returns

Why is the net amount in my DAF account different from the amount of my tax relief and deduction?

This difference is due to market fluctuations and liquidation costs.

NPT UK asks that you consult your tax advisor to determine your charitable tax deduction.

Which contribution receipt do I use when preparing my UK tax return(s)?

NPT UK provides you with a confirmation of your contribution(s). This confirmation serves as a receipt for your UK taxes.

It is extremely important to review the information on this form since it is your responsibility to submit correct information to HMRC.

Grantmaking Guidelines and Definitions

Can I recommend a grant from my donor-advised fund account to attend a charity event?

No. When you make your initial contribution to a donor-advised fund, your contribution is eligible for Gift Aid and tax relief. That is because you do not receive any goods or services in exchange for that contribution. Charitable events and galas provide their attendees with benefits that aren’t eligible for tax relief, such as food, drinks and/or door prizes. Therefore, grants recommended for these purposes cannot be approved.

How do I decide what charities to support?

You may support any charity that is registered with the Charity Commission for England and Wales, Office of the Scottish Charity Regulator and Charity Commission of Northern Ireland, exempt UK charities (such as UK universities).

You may also support other charities worldwide. These may require additional due diligence.

If you wish to plan for more strategic philanthropy, NPT UK can recommend professional consultants. You can contact our philanthropic team at +44 (0) 800 133 7540.

Can I recommend grants from my donor-advised fund account to organisations outside the UK?

Yes. Donors may recommend grants to charities worldwide. Grants to organisations outside of the UK require additional due diligence to determine if the charity is eligible. International grants also require additional monitoring.

Can I recommend a grant from my donor-advised fund account to any charity or non-profit organisation?

You may recommend grants to qualified charitable organisations around the world at any time, provided your DAF has available funds and liquidity.

In the UK, organisations must be registered with the Charity Commission for England and Wales, Office of the Scottish Charity Regulator and Charity Commission of Northern Ireland or otherwise recognised as charities under the laws of those jurisdictions, including, for example, ‘exempt’ or ‘excepted’ charities.

Grants may not be used to fulfil an existing pledge or support political campaigns or lobbies. Grants to charities outside the UK or US require additional due diligence and monitoring.

If you have a special grant request, please contact a member of NPT UK’s staff.

Are there any other specific types of grants that NPT-UK cannot make?

Grants cannot be made to political candidates or parties.  Grants cannot be used for any personal benefit, such as tuition, dues, membership fees or any goods purchased at a charitable auction.

Can I make an anonymous grant from my donor-advised fund account?

Yes. You may also recommend a grant in someone’s honour or memory.

Can my company match a grant that I recommend from my donor-advised fund account?

Yes. Please check the policies of your company.

Grant Amounts and Frequency

What is the minimum amount for an NPT UK grant?

NPT UK’s minimum grant is £200.

How many grants can I recommend in a year?

There is no limit to the number of grants you can recommend in a year.

Grant Fees and Processing

Is a fee charged for each grant I recommend?

NPT UK does not charge a per-grant fee. NPT UK may charge additional fees for grants under special circumstances, like a specialised grant agreement.

How quickly are my grants processed?

Grants will be processed once the recipient organisation has been approved to receive grants.

Donor-Advised Fund FAQs

If you have a question that isn’t covered in the sections below, please contact us at +44 (0)800 133 7540.

Overview
Contributions
Tax Information
Grantmaking

General

Who is NPT Transatlantic?

NPT Transatlantic is an independent UK registered charity (charity number 1153376) providing uniquely flexible donor-advised funds.

We are dedicated to providing philanthropic expertise to donors, foundations and financial institutions, enabling them to realise their philanthropic aspirations.

As a UK/US dual qualified charitable structure, NPT Transatlantic offers dual US/UK taxpayers the ability to claim Gift Aid in the UK, claim UK tax relief and receive a US tax deduction.

Why have a DAF at NPT Transatlantic?

Donor-advised funds offer administrative convenience, cost savings, and tax advantages versus other types of giving vehicles. If you give to a UK charity directly and you are also an American taxpayer, your gift does not qualify for a US tax deduction. If you give to a US charity directly and you are a UK taxpayer, your gift does not qualify for Gift Aid and you cannot claim tax relief on your tax return. NPT Transatlantic offers a tax effective giving vehicle for US/UK dual taxpayers.

Because NPT Transatlantic is recognised as a charity in the UK and regarded as a US tax-exempt organisation for US tax purposes, donations qualify for Gift Aid and donors are able to claim UK tax relief and receive a US tax deduction.

How does the IRS treat donations to NPT Transatlantic?

Donations to NPT Transatlantic are treated as donations to a US charity by the Internal Revenue Service.

NPT Transatlantic is an English charity (Charity Number 1153376) and an English charitable company (Company Number 08612103). HMRC recognises NPT Transatlantic as an independent English charity.

National Philanthropic Trust (EIN 23-7825575) is the sole shareholder of NPT Transatlantic. National Philanthropic Trust is recognised by the United States Internal Revenue Service (the “IRS”) as an organisation that is exempt from federal income tax under Section 501(c)(3) of the Internal Revenue Code of 1986, as amended (the “Code”) and classified as a public charity under Sections 509(a)(1) and 170(b)(1)(A)(vi) of the Code.

The IRS recognises NPT Transatlantic as a disregarded entity of National Philanthropic Trust (IRS Form 8832). As a result, NPT Transatlantic is considered a public charity described in Sections 509(a)(1) and 170(b)(1)(A)(vi) of the Code for US tax purposes.

NPT Transatlantic is not listed separately on GuideStar or the IRS website. As a disregarded entity, NPT Transatlantic is considered part of National Philanthropic Trust for US tax purposes. NPT Transatlantic is disclosed as a disregarded entity of National Philanthropic Trust in Form 990, Schedule R, Part I.

Opening a Donor-Advised Fund Account

Who can open a donor-advised fund account?

Individuals, families, companies, foundations, and other entities can start a donor-advised fund account by contributing assets.

How much do I need to open a donor-advised fund account?

You may open an NPT Transatlantic donor-advised fund account in GBP or USD.

The minimum required to open a donor-advised fund account with NPT Transatlantic is £50,000/$80,000. Once your account is established, you can make subsequent contributions of £2,000 or $3,200 or more.

Can I choose the name of my donor-advised fund?

Yes. You can choose any name for your donor-advised fund account. You can even call it a Foundation. Most donors choose a name that reflects the main purpose of the account such as “The Smith Educational Fund.” Some donors select a name that helps them remain anonymous.

How quickly can I create a donor-advised fund account?

It usually takes less than 48 hours. Once you submit a completed donor application, your account is established and ready to receive contributions.

Can 'non-doms' open a donor-advised fund account?

Individuals with non-domiciled (‘non-dom’) tax status in the UK can start and use a donor-advised fund tax-efficiently by contributing assets to NPT Transatlantic offshore.

If you have this tax status and make a donation directly to a UK charity using offshore funds, the donation may be considered ‘remitted income’ by UK tax authorities.

NPT Transatlantic can accept your contribution offshore and it will not be considered ‘remitted income’ by UK tax authorities.

NPT Transatlantic provides you with a confirmation of your contribution(s) that serves as a receipt for UK taxes purposes and another confirmation that serves as a receipt for US tax purposes (if applicable).

Your gift may benefit from Gift Aid. To qualify for Gift Aid, donors must make cash contributions. Under the Gift Aid scheme, donors must pay enough UK income and/or capital gains tax in each tax year to cover the amount of tax that charities claim on your behalf for that tax year. The Remittance Basis Charge paid by non-domiciled taxpayers qualifies as UK income tax for Gift Aid purposes.

Managing a Donor-Advised Fund Account

Can my children be involved with my donor-advised fund account?

Yes. You can name them as an advisor or successor advisor to your account. They can legally assume these roles as soon as they are 18 years old. If the Successor Advisor is a minor, NPT Transatlantic may require that a legal guardian make grant and investment recommendations.

Can my donor-advised fund account have multiple successors?

Yes. Your account assets can be split between multiple successors. Or, you can have your successors share in the advising responsibilities. Your successor advisors can also name their own successor advisors. This option offers the potential for your donor-advised fund account to exist in perpetuity.

How are the assets in my donor-advised fund account invested?

You can recommend an investment strategy from a variety of options. If your DAF has a balance greater than £500,000/$800,000, you and your advisor(s) can create a bespoke investment account with NPT Transatlantic’s approval.

What types of fees are charged to my donor-advised fund account?

Each DAF is subject to an annual charitable administration fee, which is deducted by NPT Transatlantic to cover DAF operating expenses such as grantmaking, recordkeeping, annual audits, tax filing, quarterly statements and other legal and fiscal responsibilities. NPT Transatlantic determines the amount of these fees by applying a fee schedule against the average daily balance of your DAF account at the end of each month.

Investment management fees vary by third party investment manager and are deducted for each DAF.

What happens to my DAF account if there are no successors or charitable beneficiaries?

If no Successor or Charitable Beneficiary is named in the Succession Plan, the balance of the donor-advised fund account remaining at the death, resignation or other removal of the last Advisor will be transferred to the NPT Transatlantic Giving Fund.

Can NPT Transatlantic refund any money to me once I have made a contribution into my donor-advised fund account?

Your contribution to your donor-advised fund account is an irrevocable contribution and becomes a charitable asset. Therefore, all NPT Transatlantic donor-advised fund account balances must be granted to qualifying charitable organisations.

Assets You Can Contribute and Definitions

What types of assets can I contribute to my donor-advised fund account?

NPT Transatlantic accepts a wide range of assets, including:

  • Cash
  • Shares or securities which are listed on any recognised stock exchange. These include London Stock Exchange (LSE), Alternative Investment Market (AIM), NYSE, NASDAQ, and any other recognised overseas stock exchange.
  • Other more illiquid assets, such as alternative investments, tangible personal property, and real estate. Please contact us to discuss any proposed gift.
  • Transfers and grants from other donor-advised fund programmes.
  • Transfers and grants from charitable trusts and foundations.
  • Bequests from wills

NPT Transatlantic strongly encourages you to consult with your tax advisor or legal advisor before making a charitable contribution.

At what point is a contribution considered a charitable donation?

All gifts to NPT Transatlantic are irrevocable and must be completely given, without reservation of benefit, in order to qualify for charitable tax reliefs. A contribution becomes a donation when the asset is “out of the donor’s control.” This is determined by the type of asset you contribute, when and how it is transferred to your donor-advised fund account.

What is the best type of asset that I can contribute to my donor-advised fund?

Cash and gifts of shares are the most common contributions.

Cash contributions are eligible to benefit from Gift Aid in the UK. NPT Transatlantic will claim Gift Aid on your contribution and apply the additional amount (25% of your net contribution) to your donor-advised fund account.

If you pay over the basic rate of tax in the UK, then you are eligible to claim the difference between your tax rate and the basic rate of tax on the gross donation.

A gift of shares has a double tax benefit. If gifted to your donor-advised fund account, you do not pay any capital gains tax on shares that have increased in value and you can claim income tax relief on the total fair market value of the contribution on your self-assessment tax return.

Can I donate from my salary or my bonus to my donor-advised fund via payroll giving?

Payroll Giving is a UK scheme which allows you to donate to charity from your pre-tax salary. Payroll Giving donations are deducted before tax so each £1,000 you give will only cost you £600 if you’re a higher rate (40%) taxpayer or £550 if you’re an additional rate (45%) taxpayer. If you would like to support your donor-advised fund by giving in this way, please check with your payroll or HR department to learn if your company already operates a payroll giving scheme. If it does, simply ask them for a form and complete it with your chosen amount and name NPT Transatlantic, charity number 1153376, as your charity.

Contribution Amounts and Frequency

How much do I need to open a donor-advised fund account?

The minimum required to open a donor-advised fund account with NPT Transatlantic is  £50,000/$80,000 or more. Once your account is established, you can make subsequent contributions of £2,000/$3,200 or more.

Are additional contributions to my DAF account eligible for UK tax relief and a US tax deduction?

Yes.

To benefit from Gift Aid and higher rate tax relief on your UK tax return, your UK income and/or capital gains tax liability for each tax year must be equal to or greater than the amount of Gift Aid claimed on your behalf by charities for that tax year.

How often can I make contributions to my donor-advised fund account?

You may contribute £2,000/$3,200 or more at any time. Many donors like to add to their donor-advised fund accounts immediately after they recommend a grant. Others prefer to make regular contributions and build up the account for future grantmaking.

When should I make a contribution?

It is important to consult your tax advisor since there may scope for planning your giving to maximise tax reliefs. This is of particular importance for UK-US taxpayer donors.

The UK tax year runs from 6 April in one year to 5 April in the next. In the UK, to qualify for tax relief, an eligible gift may be received by NPT Transatlantic by 31 January after the end of a tax year and still be counted towards that tax year as long as you have not yet submitted your self-assessment tax return.

The US tax year runs from 1 January to 31 December in each year. In the US, to qualify for a US deduction up to applicable limits, the gift must be received by NPT Transatlantic by December 31st of the year for which the deduction will be taken.

Contribution Management and Reporting

Will I get a receipt for my contributions?

Yes. NPT Transatlantic provides you with a  confirmation of your contribution(s) that will be a suitable record for your UK taxes and a receipt that is suitable for US tax purposes.

With a donor-advised fund account, you can immediately claim tax relief on your contribution. If your cash gift benefits from Gift Aid, you will receive a second confirmation once Gift Aid is received.

Because tax relief is available immediately for eligible contributions, grants made from your donor-advised fund account are not subject to additional tax advantages.

What happens to my contribution after it is accepted by NPT Transatlantic?

You may recommend an investment approach for your DAF assets.

If your contribution is liquid, we invest it within several business days of receiving it. If your contribution is illiquid, we invest it within several business days of receiving proceeds from its sale.

Tax Advantages

What type of tax advantages might be associated with my contribution?

For detailed information, please visit our Tax Advantages page.

What is Gift Aid?

Gift Aid is the name of the UK tax incentive for cash donations. Gift Aid is a split tax incentive between the donor and the charity.

The charity, NPT Transatlantic, can claim 25 pence for every £1 contributed. NPT Transatlantic will claim Gift Aid on your cash contribution and credit your donor-advised fund account for the amount of the reclaimed Gift Aid.

If a donor pays over the basic rate of tax, they are eligible to claim the difference between their tax rate and the basic tax rate on the gross donation when completing their Self-Assessment tax return.

For more information about Gift Aid, see How Does Gift Aid Work? and visit the Gift Aid calculator on our Tax Advantages page.

Does my tax relief depend on the type of asset I contribute?

Yes. Here are some general guidelines:

For US Tax Purposes

Cash: Your charitable deduction is the amount of your cash contribution, plus the value of Gift Aid reclaimed by NPT Transatlantic.

Publicly-traded shares: If you have owned your donated shares for more than one year your charitable deduction is the fair market value of those securities, determined by an average of high and low on the date you contribute them.

For UK Tax Purposes

Cash: You may claim the difference between your tax rate and the basic tax rate on the gross value of the contributions to NPT Transatlantic if you are a higher or additional rate taxpayer in the UK.

Publicly-traded shares: You may claim income tax relief on the total fair market value of the contribution on your self-assessment tax return (and the transfer will be free from capital gains tax).

How are capital gains treated for gifts of appreciated shares?

NPT Transatlantic is a UK charity for tax purposes. Your gift of appreciated shares does not create a capital gains tax liability for either NPT Transatlantic or the donor.

Is the income accrued in my DAF account eligible for additional charitable tax relief?

No. Only contributions to NPT Transatlantic are eligible for tax relief/deduction. Growth within your donor-advised fund account is not eligible for additional tax relief/deduction.

What are the limitations on charitable deductions?

UK:

There are no limits on the amount of tax relief that can be claimed on your tax return for your charitable contributions.

However, please note that your UK income and/or capital gains tax liability for each tax year must be equal to or greater than the amount of Gift Aid claimed for that tax year.

Please contact your tax advisor to evaluate your tax relief limits.

US:

Under the Internal Revenue Code, deductions for charitable contributions are subject to certain “percentage limitations.” That means you can deduct a stated percentage of your adjusted gross income (“AGI”) in the year you take the deduction. Contributions in excess of these percentage limitations may be carried forward for additional years.

Because National Philanthropic Trust is a public charity in the United States, percentage limitations that apply are the most favourable charitable deductions available. Deductions for contributions of long-term capital gain property—such as appreciated securities held for more than one year—are limited to 30% of AGI. Deductions for cash contributions may be taken up to 60% of AGI. Your ability to take itemised deductions may be subject to certain other limitations.

Please contact your tax advisor to evaluate your tax deductibility limits.

Tax Returns

Why is the net amount in my DAF account different from the amount of my tax relief and deduction?

This difference is due to market fluctuations and liquidation costs.

NPT Transatlantic asks that you consult your tax advisor to determine your charitable tax deduction.

Which contribution receipt do I use when preparing my US Tax return(s)?

If you are a US taxpayer, you will receive a gift receipt and an IRS Form 8283 for eligible contribution(s) from NPT in the United States to file with your US tax return.

It is extremely important to review the information on this form since it is your responsibility to submit correct information to tax authorities.

Which contribution receipt do I use when preparing my UK tax return(s)?

NPT Transatlantic provides you with a confirmation of your contribution(s). This confirmation serves as a receipt for your UK taxes.

It is extremely important to review the information on this form since it is your responsibility to submit correct information to tax authorities.

Grantmaking Guidelines and Definitions

Can I recommend a grant from my donor-advised fund account to attend a charity event?

No. When you make your initial contribution to a donor-advised fund, your contribution is eligible for Gift Aid and tax relief. That is because you do not receive any goods or services in exchange for that contribution. Charitable events and galas provide their attendees with benefits that aren’t tax deductible or eligible for tax relief, such as food, drinks and/or door prizes. Therefore, grants recommended for these purposes cannot be approved.

How do I decide what charities to support?

You may support any charity that is registered with the Charity Commission for England and Wales, Office of the Scottish Charity Regulator and Charity Commission of Northern Ireland, exempt UK charities (such as UK universities) or any charitable organisation that is tax-exempt under Internal Revenue Code (IRC) Section 501(c)(3) and public charities under IRS Section 509(a) in the United States.

You may also support other charities worldwide. These may require additional due diligence.

If you wish to plan for more strategic philanthropy, NPT Transatlantic can recommend professional consultants. You can contact our philanthropic team at +44 (0)800 133 7540.

Can I recommend grants from my donor-advised fund account to organisations outside the UK?

Yes. Donors may recommend grants to charities worldwide. Grants to organisations outside of the UK or US require additional due diligence to determine if the charity is eligible. International grants also require additional monitoring.

Can I recommend a grant from my donor-advised fund account to any charity or non-profit organisation?

You may recommend grants to qualified charitable organisations around the world at any time, provided your DAF has available funds and liquidity.

In the UK, organisations must be registered with the Charity Commission for England and Wales, Office of the Scottish Charity Regulator and Charity Commission of Northern Ireland or otherwise recognised as charities under the laws of those jurisdictions, including, for example, ‘exempt’ or ‘excepted’ charities.

In the US, organisations must be tax-exempt under US IRS Code Section 501(c)(3) and public charities under Code Section 509(a)(1), (2) or (3); and/or private operating foundations described in Section 4942(j)(3) of the US IRS Code. Grants may not be used to fulfil an existing pledge or support political campaigns or lobbies.

Grants to charities outside of the UK or US require additional due diligence and monitoring.

If you have a special grant request, please contact NPT Transatlantic.

Are there any other specific types of grants that NPT Transatlantic cannot make?

Grants cannot be made to political candidates or parties. Grants cannot be used for any personal benefit, such as tuition, dues, membership fees or any goods purchased at a charitable auction.

Can I make an anonymous grant from my donor-advised fund account?

Yes. You may also recommend a grant in someone’s honour or memory.

Can my company match a grant that I recommend from my donor-advised fund account?

Yes. Please check the policies of your company.

Grant Amounts and Frequency

What is the minimum amount for an NPT Transatlantic grant?

NPT Transatlantic’s minimum grant is £200 or $320.

How many grants can I recommend in a year?

There is no limit to the number of grants you can recommend in a year.

Grant Fees and Processing

Is a fee charged for each grant I recommend?

NPT Transatlantic does not charge a per-grant fee. NPT Transatlantic may charge additional fees for grants under special circumstances, like a specialised grant agreement.

How quickly are my grants processed?

Grants will be processed once the recipient organisation has been approved to receive grants.