Banker's Orders can enhance the value of your payments to the Friends of Mount Athos and will save us a tremendous amount of time and effort. We urge members who are UK taxpayers to pay by that means. A Banker's Order (for use in the UK) is included in the printed Membership Application Form.
Since the society is a UK charity (No. 1047287), it can reclaim tax on subscriptions. Members who are paying by Banker's Order and who are UK taxpayers are asked also to complete a covenant form. This increases the value of a subscription to the society by the basic rate of tax. We hope that members will take advantage of the opportunity to pay their subscriptions and make donations by Deed of Covenant. Donations can also be made under the Gift Aid scheme.
The effect of both schemes is to give UK taxpayers tax relief on contributions to the Friends of Mount Athos. Basic rate relief is repaid by the Inland Revenue to the Friends, and relief at the higher rate, where appropriate, is claimed directly from the Revenue by the donor. (See below for further information about Deeds of Covenant and Gift Aid.)
Both schemes are ways of making your contribution to the Friends worth more to us at no extra cost to you. Full details are set out below.
If you pay tax at a higher rate, you will be eligible to claim higher rate relief on your covenanted payment personally.
For example, a payment of £ 10 per annum made under covenant would entitle the Friends to recover £ 3.33 in basic rate tax from the Inland Revenue. A 40% taxpayer could then claim back a further £ 2 in tax himself, and would thus have made a total sum of £ 13.33 available to the Friends at a cost of just £ 8.
Charitable covenants must be capable of exceeding three years in duration.
Under this scheme the Friends can recover the basic rate tax you have paid on the amount you give. For example, if you give the minimum amount permitted by the Gift Aid legislation at £ 250, we can then reclaim £ 83 in tax which you have paid.
If you pay tax at 40%, you can also claim higher rate tax relief on your Gift Aid donation. In the example quoted, this would allow you to recover £ 50 of your gift of £ 250 in tax relief directly from Inland Revenue.
http://www.athosfriends.org/membership/UKcharities.html