The Bulldog Trust - Case Study C

Bulldog Donor Funds offer a fully tax-efficient, administration-free way of giving money to good causes leaving the donor with only one decision – which charities to support.

Case study - Donor C
Donor C owns his own company. One year Donor C decided that he can afford to take a net dividend of £2m out of the company. He is interested to know how much it will cost him if he would like to give half to charity rather than take the whole as income:

£2m net dividend after income tax = £1,500,000 net for Donor C

Or
If he sets up a Bulldog Donor Fund with £1 m. As a higher rate tax payer, Donor C can give £781,250 to Bulldog which, as part of the Gift Aid scheme will be maximised to £1million by the Treasury. Therefore from his £2m there is left £1.22m to pay himself income. Due to his donation to Bulldog Donor C gets higher rate tax relief £195,312. Therefore his total net take home is £938,477.

Therefore it has cost Donor C £561,523 (£1.5m - £938,477) to make a £1 m donation to charity.

For his Donor Fund, Bulldog then gives him an annual allocation of £60,000 pa to distribute as he sees fit.

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