Posts Tagged: charity finance

Fundraising and finance: the oddly successful couple

A while ago, I interviewed a finance director who claimed she could tell which department of a charity she was in, just by looking in the fridge. Go into the finance department in her organisation, she said, and the fridge was full of sensible sandwiches: ham and cheese on plain brown bread. The fundraising department… Read more »

Amalgamating dormant funds is sensible, even if it means Aberdeen’s aged virgins lose out

Last week, Aberdeen City Council announced plans to amalgamate 41 charitable funds, including one established in 1634 for the benefit of “aged virgins” and another set up in 1718 to aid “persons deprived of the use of reason” –  a brilliant phrase indicating that political correctness was alive and well in the 18th century. These… Read more »

HMRC doesn’t trust charities

It is difficult to believe that HM Revenue & Customs likes charities very much. Looking at the sector through the eyes of the taxman, charities are walking liabilities, profiting from generous tax breaks, but poorly-regulated and badly in need of a firm hand. The taxman has glimpsed in the current laws potential for charities to… Read more »

Can Gift Aid reform break out of this Sisyphean state?

When I was at school, an enthusiastic teacher decided to educate us in the Greek myths. One was the story of Sisyphus, who irritated Zeus, the king of the gods, and was condemned in return to push a rock up a hill for all eternity. Once the rock got to the top, it would always… Read more »

Small charities and staff pension schemes do not mix

Small charities and staff pension schemes do not seem to go well together. Too often, when combined, they lead to disaster, particularly for the trustees. A good example of this is Hirwaun YMCA, a small charity which, many years ago, hired two people without realising it was opening itself up to a large future pensions… Read more »

Charities could face tax bills that cancel out their relief

How much tax does the charity sector pay? It’s not meant to pay any, in theory. But in practice it pays a lot, it turns out, according to a very informal survey I carried out last week. Having spoken to a few charities’ finance directors, it appears many operational charities pay around a tenth of… Read more »

Many charities don’t realise how bad their pension problems really are

A few recent stories highlight the impact of the wider pensions crisis on the charity sector. The combined pensions deficit of the 20 largest charities is around £720m, according to a study by Alexander Forbes. And last week, two pensions specialists who advised charities in the Scottish Voluntary Sector Pensions Scheme – a multi-employer scheme… Read more »

Tories hint at tax breaks for social investment

In the run-up to the election there have been lots of promises from political parties about what they will do to improve the lot of social enterprises. This week Nick Hurd, shadow charities minister, suggested the Conservatives were thinking of using tax breaks to boost the social investment market. If this is the case, it… Read more »

Cancer Research UK’s proposal on Gift Aid reform is by no means perfect

It is good to see Cancer Research UK taking the lead on Gift Aid reform by supporting a 30p composite rate. It’s an idea that means charities would receive 30p in Gift Aid on every £1 given by a taxpayer, and higher-rate taxpayers would lose the right to claim any personal tax relief on donations…. Read more »

Gift Aid reform: here’s one reason why progress is slow

What is the charity sector trying to get out of Gift Aid reform? Many systems have been proposed, but none have gained much traction with either the Government or the sector. Should we have an amended opt-in system or an opt-out system? What about an accounts-based system? Or a composite-rate system? Or a system whereby… Read more »