Higher rate and additional rate taxpayers

If the donor is a higher rate or additional rate taxpayer, the donor is entitled to claim further tax relief on their donation on the difference between the higher/additional rate of tax (currently 40% and 45% respectively) and the basic rate in their Self-Assessment tax return. Currently this is 25p in every £1 for higher rate tax payers and 31p in every £1 for additional rate taxpayers.

Note: The donor can also donate the relief amount e.g. £25 for the higher and £31.25 for the additional taxpayers, but for that amount the basic rate of gift aid will apply (25%).

Overseas donors

Gifts from US Taxpayers must, in the first instance be given by the donor to CAm (Cambridge in America [2]) who will then allocate them to the University in accordance with the donor's wishes. This enables the US donors to claim full tax benefits from the United States Inland Revenue Service. Consult CUDAR for gifts from Canada, Hong Kong and European countries.

How it works

For the gift to qualify for Gift Aid, the following conditions must be met.

• The donation must be a payment of a sum of money.
• The donor must pay an amount of income tax and/or capital gains tax at least equal to the tax the University will reclaim on the donation in the tax year that the gift is received.
• A declaration must be made by the donor stating that the gifts should be treated as Gift Aid donations.
• The donor must not receive excessive benefit in return for the donation.

Further information on donor benefit rules can be obtained from HM Revenue & Customs website [3].

Procedure for making a claim

For all donations received (for which departments would like to benefit from Gift Aid) the Development and Alumni Relations office (CUDAR) will process the tax reclaims on a monthly basis. The main reason for this is to create a single processing point for all gift aid claims. In order to claim gift aid on donations they must be processed by CUDAR.

Step 1: The donation

• Donations can be made by bank transfer, debit/credit card, standing order, cash or cheque .
• CUDAR is able to process donations made payable to the University of Cambridge only.
• Where cheques have been  made out to University Departments advice should be taken from the Cash Management section in the Finance Division before proceeding any further as these may need to be to be corrected.
• Some slight variations have been allowed in the past, however, the Barclays Bank have recently started refusing these, therefore, we should ask donors to correct all cheques before these are sent to the team for processing. Ensure that the donor completes a Gift Aid declaration for the first gift they make under Gift Aid. That single declaration will cover all future donations, unless their circumstances change e.g. a change of address.

Step 2: Departmental action

The department must forward the donation along with the completed Gift Aid Declaration  [1] and a Release forms [4]to:

Development and Alumni Relations
University of Cambridge
1 Quayside
Bridge Street
Cambridge CB5 8AB

Step 3: CUDAR action

CUDAR processes tax claims once every month and will distribute the gross amount of the gift (through a journal transfer) after the tax reclaim has been recovered.

Further information

If you have any questions relating to Gift Aid please contact the Finance team at CUDAR (extension 60157 or 399971).

Additional guidance on Gift Aid can be obtained from the HM Revenue & Customs website [5].