Posts Tagged: Gift Aid

Hands up if you understand Gift Aid… most charity employees don’t

One of the main reasons that the voluntary sector only claims a third of the Gift Aid available is because few people understand it well enough. This is not widely discussed, but in my experience it is true. When it comes to how tax relief actually works, the charity sector is an ocean of uncertainty,… 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 »

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 »

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 »

Has Gift Aid reform come any closer?

Some experts on giving and philanthropy have been wary about the idea of redirecting to charities the tax rebate that can be claimed by higher-rate taxpayers on Gift Aided donations. Such a move might have unpredictable effects on giving by the rich, they warn – especially in a continuing recession with a new 50 per… Read more »