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NEWS

9th August, 2020

Charities rally behind call for Government to boost Gift Aid

More than 200 UK charities have joined a coalition calling on the Government to temporarily increase the level of Gift Aid that can be claimed in order to help keep vital charitable services running during the Covid-19 pandemic and beyond.

The proposal to introduce a Gift Aid Emergency Relief package released last month by a lead group of charities has now drawn broad support from charities of all sizes, working both locally and nationally across the UK, as well as churches and other groups.

The call for enhanced Gift Aid came as the charity sector faces a drastic funding shortfall as the effects of lockdown, subsequent social distancing, and economic uncertainty take their toll on planned fundraising activities.

Charities have begun to announce job losses and service cuts and some fear they will have to shut their doors to the millions of people who benefit from their services.

The proposed Gift Aid 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 the case. As a result, the Gift Aid claimed on every eligible donation would increase by one-third, up from the current one-quarter. The group have called for the increase to be in place for two years while charities work to recover from the crisis.

Over 70,000 charities claimed Gift Aid in 2019 and over 120,000 charities are known to be registered for Gift Aid and the Gift Aid Small Donations Scheme, so the proposal has the potential to help organisations of all sizes.

A spokesperson for the NSPCC said the move would make a crucial difference at a time of increased demand for help: "Gift Aid is our third largest income source and plays a vital role in ensuring we are able to provide the services and support needed for children and young people. This proposal would increase our monthly Gift Aid income by an estimated 200,000.00, which would significantly help towards covering the shortfall in donations".

"We urge the government to act on our recommendations, to recognise the value these sectors provide and imagine how much bleaker the outcome for all without their survival".

The full Gift Aid briefing paper can be downloaded here.

 

 
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