Together with voices from across the charity sector, we are calling on the Government to temporarily increase the level of Gift Aid that can be claimed on donations. This change would mean that a £100 donation from a UK taxpayer would increase to £133.33 for the charity once Gift Aid had been claimed. This compares to £125.00 as is currently be the case.
The latest research from the Chartered Institute of Finance, Charity Finance Group, and NCVO, supported by PwC, shows that charities are on average having to plan for a 24% loss to their total income for the year ahead due to the pandemic. An increase in tax relief on donations through the gift aid scheme would help support charitable activities at an exceedingly difficult time and would incentivise an increase in donations.
The call is for the increase to be in place for two years while charities work to recover from the crisis. It is estimated that this move could help charities to access an additional £450 million of much needed cash. It also includes changes to the Gift Aid Small Donations Scheme to ensure it benefits all.
Our Chief Exec, Robin Osterley, comments ‘this temporary change to Gift Aid would provide a much-needed boost to charities’ income. It would be a rapid and tangible way for the Government to help charities to continue providing their vital services, at a time when they have never been more needed by communities and causes. The current value of Gift Aid to charity retail is between £51-90 million a year, so the proposed changes would help to cover the shortfall that has occurred in fundraising due to the pandemic’.
For further information on the campaign you can download the campaign briefing here.