MIT Foundation (UK)
A tax efficient solution for charitable giving by UK taxpayers
The Massachusetts Institute of Technology has recently established the MIT Foundation (UK), a charitable vehicle intended to benefit the particular tax relief needs of MIT's UK-based alumni and friends. Whatever your tax status, we hope the following information will be a useful reference to you as you consider supporting education at MIT.
How Does it Work?
Gifts made to the Foundation by UK tax payers may be eligible for Gift Aid, a UK tax relief designed to encourage charitable giving. The value of your gift is increased because the Foundation can apply to HM Revenue and Customs (HMRC) to claim the basic-rate income tax that has been paid on the gross amount of the gift. If you are a UK higher rate taxpayer, you may be entitled to claim further tax relief in your self-assessment tax return. Other examples are provided in Annex A.
For example: If you would like to make a gift of 1000, excluding Gift Aid, input that amount into the field on the left side of the Gift Aid Calculator and press "Calculate". This will calculate the total gift amount, including Gift Aid.
If you would like to make a total gift of 1000, including Gift Aid, input that amount into the field on the right side of the Gift Aid Calculator and press "Calculate". The field will calculate the amount of the gift needed from you to make a total contribution of 1000.
Proposed Donation
* Assumes 20% Tax Rate
| Full Value with Gift Aid: |
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| {{vm.calculated_proposed_donation}}.00 Donate proposed amount |
Total Gift
* Assumes 20% Tax Rate
| Base Donation: | Gift Aid: |
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| {{vm.calculated_total_gift.base}}.00 Donate this amount | {{vm.calculated_total_gift.aid}}.00 |
Gifts can also be received tax efficiently by the Foundation from UK resident non-domiciled donors. If you file your tax returns on the remittance basis, please be sure to notify the Foundation Administrator, Eileen Flood, of this information before making your gift. There may also be an opportunity for receiving tax efficient donations directly from European donors (including US citizens residing in Europe) by seeking local recognition, where available, thanks to recent changes in European law.
In addition, US tax filing donors are potentially eligible to take a deduction on their US return for contributions made to the Foundation. We encourage these individuals to consult with their tax advisor as to the proper US tax treatment of these gifts.
The Foundation also allows individuals to leave legacies to MIT in their will in a tax efficient manner. All legacies to the Foundation will be paid free of UK inheritance tax, and in some cases may even be able to reduce your estate’s inheritance tax liabilities. A legacy left directly to MIT would not receive the tax benefits.
What can I give?
The Foundation accepts cash gifts and gifts of shares and securities.
The Foundation can receive match-funding from your employer, or gifts via a UK 'Give as You Earn' Program (payroll giving).
You can also leave the Foundation a legacy in your will. If your estate will be subject to UK inheritance tax then any legacy left to the Foundation would be paid free of inheritance tax. In addition, you may be able to take advantage of an additional tax relief, which reduces the rate of inheritance tax charged on estates where 10% or more is left to charity. The effect of that relief means that if you are considering leaving at least 4% of your estate to one or more charities, you may instead be able to leave 10% without reducing the amount your non-charitable beneficiaries would receive. An example of how the relief works is at Annex B. Further information is available on the HMRC website: http://www.hmrc.gov.uk/inheritancetax/pass-money-property/charity-reduce.htm.
You may recommend that your gift to the Foundation should go to support a particular purpose or program that is consistent with the objectives of the Foundation: to advance and promote the charitable educational work of MIT. If you are considering a gift with specific restrictions for its use, please contact us to ensure that the Foundation will be able to fulfil your intentions.
Where can I find out more?
For more information about the Foundation, to make a gift or to obtain a Gift Aid Declaration Form, please contact:
Eileen Flood
Foundation Administrator
MIT Foundation (UK)
19 Norcott Road
London N16 7EJ
UNITED KINGDOM
+44 (0) 207 502 2813
Please consult your tax or legal adviser to discuss your particular circumstances.