The charity sector is in the middle of the biggest financial crisis it has ever faced. Huge falls in income, increased levels of demand for services, needing to do more to respond to COVID-19, and caring for the most at-risk and marginalised individuals and communities creates a perfect storm.
CTG is part of a coalition of charities, campaigning for a two year Gift Aid Emergency Relief package. We are proposing that Gift Aid be raised from 20% to 25% and that the Small Donation scheme (that makes claiming gift aid easier for small charities) be extended to many more. The 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 and could result in an additional £450m to help the sector survive this crisis and recover. Read our full campaign briefing.
Our proposals for Gift Aid Emergency Relief would go some way to keeping charity services running and enable charities to get through the crisis who otherwise would have to shut their doors. Over 300 charities have signed up to the campaign, but we need more to succeed. Sign up to give your voice to the Gift Aid Emergency Relief Campaign today by completing the following form
Initial feedback from Ministers has highlighted concerns that the proposals would break the link between tax and Gift Aid and would only benefit larger charities. Although this proposal decouples Gift Aid from the basic rate of income tax, this is only proposed as a temporary measure, and a successful precedent for such a step was set with the Gift Aid Transitional Relief, which operated for a three-year period between 2008 and 2011. Given the financial difficulties facing charities at present, this time-limited proposal would be a practical and easily implemented measure that would have far reaching benefits for fundraising charities and their beneficiaries. Approximately 73,000 charities claimed Gift Aid in 2018/19, which represents 40% of the total number of charities in the UK but a far greater proportion of charitable activity, so would have a significant impact. The campaign has generated widespread support among smaller charities and research by the Charity Tax Commission has shown that on average the value of Gift Aid as a proportion of total income is higher for small charities compared to larger charities. We need to continue to generate political support to demonstrate the importance of this proposal.
How many charities will benefit? Haven’t charities already been given a support package? Why do charities need additional support? Find out the answers to these questions and more in our campaign FAQ document. Share our top facts about the campaign on social media with these free digital assets. Charities that have already registered their support for the campaign should have already been contacted by the coalition, with details of the campaign pack, including draft letters to MPs. Charities and advisers are also encouraged to share details of the campaign with their networks.