Using CAF is a secure and easy way for U.K. and dual taxpayers to support charities in the U.S. with immediate tax benefits. The CAF American Donor Fund is a U.S. 501(c)(3) charity and therefore donations to the fund are classified as gifts to a U.S. public charity and qualify for a tax deduction in the U.S. as well as Gift Aid benefits in the U.K.
Gift Aid allows charities to be reimbursed for the tax you paid on the money donated. This is usually calculated at the basic tax rate of 20% of the gross amount of the gift. This means that your donation can be worth an extra 20p for every £1 donated at no extra cost to you.