Entry from British & World English dictionary
An agreement to pay a regular amount of money, particularly when this enables the recipient (typically a charity) to reclaim any tax paid by the donor on the amount.
- ‘I remember once I spent a month going round all the company's Swindon offices encouraging people to make their regular donations by deed of covenant instead of just giving deductions from their pay,’ she said.
- A child or other relation can provide a deed of covenant for an older person to assist with nursing home fees and claim income tax relief at their marginal rate on contributions.
- To protect its investment the Government has also entered into a deed of covenant with the groups stipulating the terms under which State funding has been provided.
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