The Institute of Fundraising (‘Institute’) has welcomed the Government’s investment in a tax-effective giving programme for small charities with a turnover of less than £1million and the implemention of a transitional rate of 22 per cent, to allow Gift Aid to be claimed at the present rate until 2011, as outlined in this afternoon’s Budget.
The Institute recognises this investment by Government is an acknowledgment of the impact that the reduction in the basic rate of income tax was set to have on the sector.
Additionally, the Government’s commitment to the changes in, and review of, Gift Aid auditing requirements; the proposals to reducing the burden on the record keeping and claims process, and increased support from HMRC in the launch of additional online information and the development of a Gift Aid toolkit have all been warmly received by the Institute.
Lindsay Boswell, Chief Executive of the Institute of Fundraising, said:
'Supporting charities and voluntary and community sector organisations to maximise their fundraised income is at the heart of the Institute’s work and we are very pleased that these important support resources will be able to continue through Govenment funding.
'We are delighted that many of the issues raised by the sector in the course of the HM Treasury led review of Gift Aid have been recognised and action is now being taken. Ensuring that Gift Aid and other forms of tax-effective giving reach their full potential requires a partnership between the sector and Government.
'Central to this is identifying and removing the key barriers to growth and the Institute would urge Government to prioritise and move quickly with many of the proposals that have been outlined today.
'It is also vital that the sector and Government work closely together to ensure that there are ways in which organsiations can generate income to replace the transitional relief when it comes to an end in 2011.'
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For media queries:
Diana Mackie Tel: 020 7840 1027/ 07793 802 852
Institute of Fundraising
Email Diana Mackie
