The American School in London is incorporated as a 501(c)(3) non-profit in the US and a registered charity in the UK. For charitable giving purposes, donors to ASL give primarily and overwhelmingly to the American School in London (UK) Ltd., allowing them to potentially enjoy both US and UK tax benefits.
ASL Foundation (UK) Ltd.
Contributions made to the ASL Foundation (UK) Ltd. provide simultaneous tax benefits in the US and the UK. This entity is recognized both by the United States IRS as a non-profit 501(c)(3) organization (US tax ID 13-6258480) and by the United Kingdom Charities Commission as a registered charity (No. 1086037). Donors who make donations to this entity, who pay taxes in both the UK and US, may be eligible for tax benefits in both countries for the same gift. Gifts made to the ASL Foundation (UK) Ltd.—in either dollars or pounds—are tax-deductible for US taxpayers to the full extent of US tax code, and may also provide tax benefits to UK taxpayers. If you are a US taxpayer, you may be able to deduct the gift plus the Gift Aid claimed by the Foundation (UK) Ltd.
Mr. & Mrs. Anthony Phillips
Mr. & Mrs. Phillips pay taxes in both the United States and the United Kingdom at the 45% rate. The Phillips Family make a contribution of £1,000 to the ASL Foundation (UK) Ltd. Mr. Phillips signs a Gift Aid declaration. ASL claims a rebate of £250 from HMRC. In his UK tax return, Mr. Phillips claims £312.50, so in effect he has paid just £687.50 to the School. Because Mr. Phillips also pays tax in the US and ASL is a 501(c)(3), Mr. Phillips itemizes his donation plus Gift Aid on his US tax return.
- Donor makes personal gift of £1,000
- Donor completes Gift Aid Declaration form
- ASL submits Gift Aid claim to HMRC for £250
- Donor recognized for gift of £1,250
- Donor claims £312.50 on UK taxes
- Donor itemizes £1,250 deduction on US taxes (donation + Gift Aid amount)
Ms. Jones pays tax only in the United Kingdom at the lower rate. She makes a contribution of £1,000 to the ASL Foundation (UK) Ltd. and signs a Gift Aid declaration. ASL claims a rebate of £250 from HMRC.
The American School in London Foundation
Contributions to The American School in London Foundation provide tax benefits in the US only. This is recognized by the United States IRS as a not-for-profit/501(c)(3) organization (US tax ID 13-6258480). The American School in London Foundation was organized in the United States in 1967 for charitable, educational and advancement purposes. Contributions to this entity may suit donors who require their contributions be made within the US.
Mr. & Mrs. John Smith
Mr. & Mrs. Smith pay tax only in the US and make a contribution of $2,000 to the American School in London Foundation via the Smith Family Foundation. This contribution is not eligible for the Gift Aid program. The Smith Family Foundation will receive a receipt for the gift and Mr. & Mrs. Smith are recognized as the donors in the Annual Report.
Individual circumstances may vary. Donors should consult a tax professional for specific advice.