Charity coalition calls for temporary rise in Gift Aid rate

1 min read

A coalition of major charities and umbrella bodies has urged the Government to temporarily increase the rate of Gift Aid not-for-profit organisations can claim in a bid to provide a £450 million boost to the sector’s finances.

The coalition is being led by the Charities Aid Foundation (CAF), the Institute of Fundraising (IoF), the Charity Finance Group and the Charity Tax Group, and includes support from charities such as Cancer Research UK and the British Heart Foundation.

The group is asking the Government to increase the effective amount of Gift Aid that charities receive on eligible donations from 25% to 33% for the next two years, in a move that would help alleviate the shortfall many charities are facing because of the coronavirus outbreak.

The organisations estimate that the move would be cost-neutral to the public purse because the cancellation of many fundraising events in the midst of the pandemic will lead to fewer Gift Aid claims being made.

Gift Aid claimed by UK charities reached a record high of £1.35 billion in the year to the end of March 2019.

Our Director of Fundraising Robin Meltzer said “It is at times like this that the third sector and the Government need to think differently and explore ways to protect vital charitable income. A temporary increase in the rate of Gift Aid makes sense because it uses a system which already exists and which has the confidence of the public. I hope this idea is expedited to help all charities during the current downturn.”

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