There are many ways for companies and individuals to give to local causes through County Durham Community Foundation with the incentive of effectively managing your tax.
If you are a UK taxpayer, you are able to add Gift Aid to your donations to County Durham Community Foundation to help you give extra money at no additional cost to you. The donation will be taken as if basic rate tax has been deducted and so we can then reclaim that tax from HMRC.
If you are a higher rate taxpayer, you are able to claim back the difference between your rate and the basic rate of 20% on the total of the donation. Therefore, you are able to maximise the impact of your donation, as we receive more to give to the causes that mean the most to you.
You can also give tax-effectively through self-assessment. If you complete a self-assessment tax return and you require a tax refund, you can choose for all or part of the refund to be sent directly to us. Thhis form of giving is also eligible for Gift Aid. This is simple to arrange and HMRC will send your refund directly to the County Durham Community Foundation.
When a company creates a fund with us, it is eligible to pay less corporation tax. A company is able to make donations to the County Durham Community Foundation in the form of money, equipment or trading stock, land, property or shares and by sponsorship payments
A company can claim for corporation tax relief when giving to County Durham Community Foundation by deducting the amount it has donated from the overall business profits before tax is paid. Whether you donate through a named fund or by gifts of assets, you are able to reap the benefits of tax-effective giving. Corporate donations are not eligible for Gift Aid.
When gifting land to County Durham Community Foundation, you won’t have to pay tax on capital gains and you are able to deduct the value of the gift from the overall profits of your business before you make your tax payments.
County Durham Community Foundation recommends that you always seek legal advice before setting up a fund with the intent of receiving tax relief.