Gift Aid Crisis management

Charities call for boost to Gift Aid amid pandemic fundraising shortfall

A coalition of leading voices in UK charities has called on the Government to temporarily increase the level of Gift Aid that can be claimed on donations.

The move to boost the Gift Aid charities receive from eligible donations comes as charities of all sizes face a crisis to their income caused by the Covid-19 pandemic. The latest research from IoF, CFG, and NCVO, supported by PwC, shows that charities are on average having to plan for a 24% loss to their total income for the year ahead.

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. This compares to £125.00 as is currently be 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 coalition is being led by CAF, IoF, CFG, CTG and NCVO and includes support from a wide range of charities such as Cancer Research UK and the National Deaf Children’s Society to smaller organisations such as Shropshire Cat Rescue. The group have called for the increase to be in place for two years while charities work to recover from the crisis.
The coalition estimates that this move could help charities to access an additional £450 million of much needed cash. It also includes changes to the Gift Aid Small Donations Scheme to ensure it benefits all.

Sir John Low, Chief Executive at Charities Aid Foundation (CAF), said;
“This is a straight-forward, quick and tangible way to help charities at this most challenging time in their history. It is an emergency response in a time of crisis for the very charities providing vital services in the UK and around the world.”

Peter Lewis, Chief Executive, Chartered Institute of Fundraising, said:

“Government support through Gift Aid is proven to be a significant nudge which increases people’s likelihood to give, and encourages people to give more. This package would be an incredibly clever way for the government to support charities and the services they provide, at the time when they most need it.”

Caron Bradshaw, Chief Executive, Charity Finance Group, said:

“The cancelled fundraising events across the country means that Gift Aid that would have been claimed has not been. We are confident that this move will help charities and, ultimately, will not cost Government more than was projected in normal times.”

Charity Tax Group (CTG) Chairman, John Hemming commented: “The Gift Aid Emergency Relief proposals will help charities when they need it most. We know that they are realistic, have worked before and will encourage donors to be even more generous.”

Karl Wilding, Chief Executive, National Council for Voluntary Organisations said:
‘This temporary tweak to the Gift Aid system would provide a much needed boost to charities’ fundraising income, enabling them to increase support for communities across the country as they struggle with the economic and social consequences of the coronavirus pandemic.’

Download the Gift Aid Emergency Package

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