The University of Reading is an independent corporation with charitable status established by Royal Charter granted in 1926. The University is an exempt charity (reference X 8145), therefore, it is not required to be registered with the Charity Commission. However we are subject to the Charity Commission's regulatory powers which are monitored by the Higher Education Funding Council for England (HEFCE).
UK residents can make tax-efficient charitable donations via a number of schemes.
As well as this, your employer may operate a scheme whereby it will match gifts you make to charities. You can usually find out about these schemes from your organisation's human resources department.
Gift Aid is a UK government scheme that enables the University to claim tax relief on donations from UK taxpayers. It won't cost you any extra, but it means the University of Reading can achieve maximum benefit from your support. Therefore, we would encourage all eligible donors to take up this scheme in order to achieve the best possible impact.
For every £1 a UK taxpayer donates, 25p in reclaimed tax is added. This means that a £100 gift with Gift Aid is worth £125 to the University of Reading.
Donations from companies are not eligible for Gift Aid. However, the company can treat the gift as an allowable expense, making a saving on corporation tax.
UK taxpayers who are paid under PAYE (Pay As You Earn) can maximise regular donations to the University of Reading through payroll giving. Gifts made through this scheme are taken directly from the gross pay, giving the benefactor immediate tax relief at the highest rate of tax for which they qualify.
If you are a UK taxpayer and are interested in this method of giving, please request an application form from your employer, detailing your wishes to donate to the University of Reading. The employer will then deduct a gift directly from your salary before tax is applied.
Legacies and reducing Inheritance Tax
Gifts to charity are exempt from Inheritance Tax (IHT) in the UK, and the government provides a further incentive when you leave 10 per cent or more of your net estate to charity. You can find out more about legacy giving here.
Higher rate tax relief
If you pay tax at either the higher (40%) or additional rate (45%), you can claim the difference between the rate you pay and basic rate on your donation. You can do this by either your self-assessment tax return or by asking HM Revenue and Customs (HMRC) to amend your tax code.
As an example, if you donate £1,000 to the University of Reading and we claim Gift Aid on that donation - we then get support worth £1,250. However, if you pay 40% tax then you can personally claim back £250 (which is 20% of the £1,250 donation). This means that your donation effectively costs you only £750. If you pay 45% tax then you can personally claim back £312.50 (which is 25% of the £1,250 donation), with your donation then effectively costing you £687.50.
To aid filling in your self-assessment tax return we can send you an annual donation statement that you can use on your tax return, which details your donations and the gift aid.
Our alumni and friends who are based in the USA can give to the University of Reading through BSUF (British Schools and Universities Foundation), a 501(c)(3) charitable organization that is recognised by the United States Internal Revenue Service. Please state your preference for the 'University of Reading' when asked if you wish your donation to be dedicated anywhere. Give now.