If you making donations to a charity overseas, consider using a money transfer provider to send the funds for you. There are many charities who do not have international bank accounts and sending money directly to the charity account in their home country can be the most efficient way to make the donation.

Donations to education institutions

One of the most common reasons to send donations internationally is to support a former school or college in a country you no longer live in. Some of these institutions may have a fundraising team based in your local others but others only have a fundraising office in the school’s home country.

Tax implications of making a donation

If you are making a charitable donation personally or from your company, it is advisable to additionally seek some tax advice as to whether the donation is tax deductible.

In the UK, Gift Aid allows a donation to a charity or Community Amateur Sports Clubs to be re-claimed against your basic rate tax. If you pay higher rate tax, have a higher Personal Allowances or tax credits, Gift Aid donations may be able to increase your entitlement further.

In the US, a donation can also be used to reduce the taxable position of the donor. The donation need not be in cash and can be in terms of property and shares as well. We recommend seeking tax advice as to the exact handling of a charitable income tax deduction in the US.

Donations made to a charity in Australia are also tax deductible. The deduction with the Australian Tax Office works in a similar way to the UK and USA models.