Gift Aid on small cash donations
2 hours ago
Charities will benefit from Gift Aid on small cash donations under plans published by the Government.
Donations of £20 or less will be boosted by an extra 25p per pound, increasing funding by about £100 million each year by 2015-2016.
Proposals are designed to stop organisations losing out when people contribute to bucket collections and do not fill out Gift Aid declarations.
The current scheme provides more than £1 billion in additional income for the charitable sector.
Introducing this new scheme will see a big jump in the amount that charities can raise.
Treasury Minister Chloe Smith said: “The Government is committed to encouraging charitable giving and building a more socially conscious society. Key to this is building a stronger culture of giving. The proposals in this Bill are part of that drive.
“The scheme has been designed in order to make it fair and generous, and straightforward for charities to claim the top-up payments.”
John Hemming, chairman of the Charity Tax Group, said that they welcome the changes and the Government’s willingness to adapt the scheme based on feedback from the sector.
