How Your US Connected Clients Can Give Tax-Effectively

As we approach the final weeks of the year, your US-connected clients might be thinking of making tax-effective charitable gifts. If your clients pay income taxes in the UK and the US, there is a tax-effective way for them to maximise their giving. A donor-advised fund (DAF) with NPT Transatlantic allows your clients to claim eligible tax deductions for their giving in both jurisdictions. Here’s what you need to know about how to help your clients maximise their charitable impact:

• Your clients may contribute a wide range of assets to their DAF including cash, appreciated shares, property and complex assets such as alternative investments, restricted shares, privately held business interests (C-corporations, S-corporations, LLCs) and publicly traded partnerships. Gifts of cash may benefit from Gift Aid relief in the UK while donating non-cash assets may avoid capital gains taxes.

• Your clients can maximise their charitable giving and tax deductions by making larger contributions in less frequent intervals to a DAF. “Bundling” gifts – contributing 2-3 years’ worth of charitable gifts at once to a DAF – allows flexibility to claim a charitable deduction in year one and to grant the assets out over time.

• With a DAF, your clients can make grants to charities worldwide. NPT Transatlantic conducts all the necessary due diligence on charitable grantees. Your clients can have peace of mind for regulatory compliance as NPT Transatlantic assumes all regulatory and reporting responsibilities.

If setting up a DAF is not right for your US-connected clients, they may also make dual qualified single gifts. NPT Transatlantic offers designated funds for donors who wish to make a single charitable gift to one specific charity. As a dual qualified charity, NPT Transatlantic will issue the donor a UK and US tax receipt.

To find out more about how NPT Transatlantic can help your US-connected clients, please contact us.

NPT UK does not provide legal or tax advice. This blog post is for informational purposes only and is not intended to be, and shall not be relied upon as, legal or tax advice. The applicability of information contained here may vary depending on individual circumstances.