Case study - Donor B
Using Gift Aid, Donor B gives a straight forward maximised cash gift of £250,000 to The Bulldog Trust. In exchange Bulldog offers Donor B £15,000 to distribute annually. This costs Donor B only £195,313.
As a higher rate tax payer Donor B is able to reclaim his higher rate tax from the government. This equals £48,824 returned to Donor B on his original donation of £195,313 meaning Donor B’s £250,000 donation to Bulldog cost him only £146,484.