Mr and Mrs Willie Rushcliffe
Mr and Mrs Rushcliffe opened a with an endowment fund that enables them to make annual payments to charities. A few years ago, following a riding accident, Mrs Rushcliffe lost the hearing in her right ear. They decided they wanted to focus some of their giving and approached the Foundation to see if we could help. They wanted to set up a fund to specifically support projects working with people who are deaf or hard of hearing, both locally and nationally. We spent time with them talking through the different options available and they decided to set up an endowment fund with the Community Foundation.
In consultation with their tax adviser, Mr Rushcliffe decided to sell shares from his portfolio. The gain from the sale of the shares was £120,000; this was transferred to their new donor advised fund with the Foundation. His gift was completely tax deductible from income and as Mr Rushcliffe is a higher rate taxpayer he received tax relief of £48,000 (£120,000 x 40%). So the real cost of the gift to him was just £72,000.
Mr and Mrs Rushcliffe asked the Foundation to find suitable projects to support in Nottinghamshire. We contacted local projects working with people who are deaf and asked them to identify areas of real need. We assessed each application and provided them with a shortlist of ten potential projects. They then selected three and asked to visit one in particular so they could meet the people involved. After their visit they chose to give that project £3,940 and the other two, one a national charity, £1,000 each.
Mr Rushcliffe has continued to make an annual contribution to the fund, helping to reduce his tax bill and increasing the amount he gives to charity. Their daughters have also become involved in the fund; visiting projects and helping their parents choose recipients.
Mr and Mrs Rushcliffe contribution – how it works |
£ |
Initial Gift |
120,000 |
Less 1% Gift to the Foundation Fund to assist with set up |
1,200 |
Initial Fund Value |
118,800 |
(Tax relief received by Mr Rushcliffe) |
(48,000) |
Plus |
|
Estimated annual growth (6% x £118,800)* |
7,128 |
Initial fund plus estimated annual growth |
125,928 |
Less |
|
Fund administration and grant making fee (1.25% x £125,928)* |
1,574 |
Funds for grant making (4.75% x £125,928)* |
5,982 |
Total Fund Value at end of Year 1* |
118,372 |
*As the fund is invested, these values are approximate and will depend upon market conditions.
If you are interested in starting your own fund or require any further information about supporting Nottinghamshire Community Foundation,
please contact Zoë Keens on 01623 636365.