CFDG respond to Budget 2011 - Gift Aid simplification key in including the sector in the pro-growth budget
23rd March 2011
CFDG are delighted to see genuine reflection on the involvement of the charity sector in the delivering the country’s economic recovery. In particular CFDG welcome Government listening to calls from the sector in a joint letter instigated by CFDG outlining simplification measures for Gift Aid. CEO of CFDG, Caron Bradshaw said “a number of announcements today will impact positively on charities. Given the central role of the sector in delivering growth we are pleased to have seen measures to tackle long-standing issues such as Gift Aid simplification.”
Caron added “online filing will benefit all but removing the paper trail up to £5000 worth of donations will be especially supportive for smaller charities that currently struggle to make use of Gift Aid at all. In our 2010 survey 43.2% of respondents said they did not maximise their income through this relief – this measure can only help. This goes some way to addressing the lack of tax incentives in the Giving Green Paper.”
A rise in income tax allowance, the reduction in fuel duty and the extension in mileage rates to volunteer passengers is good news all round for charities – with funding already strained.
This year’s Budget has an emphasis on cutting red tape and making it easier for SMEs to access new markets, however it is important that charities are able to utilise new provisions in the same way. Particularly given that the long-term issue of the VAT burden charities face has still been left unaddressed. CFDG urge Government to make this their next priority.
The consultation on the merger of National Insurance and Income Tax was also addressed today by George Osborne, a move CFDG welcome. Caron Bradshaw went on to say “it is essential that the Government engage with and listen to the views of the sector as it will have implications for Gift Aid.”
Given the lack of detail on the sector in last year’s Budget CFDG are pleased to see that there are a number of specific provisions for charities outlined today.
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Notes to Editors:
1. CFDG is the charity that champions best practice in finance management in the voluntary sector. Our training and development programmes enable finance managers to give the essential leadership on finance strategy and management that their charities need. With more than 1,700 members, managing over £21bn, we are uniquely placed to challenge regulation which threatens the effective use of charity funds. For more information, please see www.cfdg.org.uk
2. Do discuss the Budget with CFDG please contact Melora Jezierska or Katherine Smithson at email@example.com or on 0207 250 8347/8348