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Tax effective giving
The UK and US governments support charitable giving and offer a series of tax benefits to encourage philanthropy
Gift Aid
All personal donations to the Barbican Centre Trust Ltd are eligible for Gift Aid. This means that the Trust is able to reclaim the tax on your support at no extra cost to you.
This is very important to us as it means we can increase the value of your gift to the Barbican by 25%. For example, with Gift Aid a £10 donation to the Barbican Fund could be worth £12.50, or a £1,200 gift to Barbican Patrons could be worth to £1,500.
You just need to be a UK tax payer and pay UK income or capital gains tax to the value we (and any other eligible charities you support) will claim on your donation – 25% of the total value.
Any UK tax payer can agree to Gift Aid, but the scheme can be especially beneficial to higher rate tax payers. If you pay UK income tax at the higher or additional rates, you may be entitled to claim additional tax relief on your donations. This equates to 25p in personal tax relief on every £1 donated, effectively reducing the actual cost of your donations.
You can make a single declaration to cover all past, present and future donations. However, if your circumstances change and you cease to pay tax, or you change your name or private home address, please let the Barbican know.
Gift of Shares
If you own shares which show a capital gain and/or pay UK income tax at the higher or additional rates, you may find it effective to make a gift of shares to the Barbican Centre. As the Barbican Centre is a registered charity, the market value of your gift can be offset against your taxable income and no capital gains tax are payable.
Your investment manager or broker will be able to advise you of the mechanics of making such a transfer. It is also essential you record evidence of your gift for the Tax Office.
Payroll Giving or Match Giving
If your employer or pension provider runs a matched giving or payroll giving scheme through PAYE, you can make tax efficient gifts as pre-tax deductions from your salary or pension.
Donations are made after national insurance contributions are calculated, but before income tax is calculated and deducted. This means you do not pay tax on this donated income – immediate tax relief.
You do not have to disclose the recipient charity to your company (as they simply act as a conduit to government approved giving agencies). Your HR team or pension manager will be able to advise if your employer/provider runs an eligible programme and provide the necessary forms.
Charitable Trust or CAF Voucher
If you donate to a number of charities, you may choose to set up a Corporate or personal Trust, or an account with CAF (Charities Aid Foundation) or other philanthropic Trust. The Barbican Centre Trust, as a registered Charity, can accept philanthropic gifts made through such organisations.
Donations from the USA
If you would like to donate from the USA, you can make your gift via CAFAmerica, which is registered in the US as a 501(c) (3) tax-exempt organisation. Charities Aid Foundation America (CAF America) is a US public charity that helps US donors make grants to charitable causes around the world. CAFAmerica will charge an administrative fee of 8% for handling your donation and forwarding it to the Barbican. To donate and find out more, please visit https://cafamerica.org
Eleni Markopoulioti, Senior Philanthropy Manager: [email protected]