Freelance Fundraiser’s Jottings

28 March 2008

Darling, you didn’t change the Corporate Gift Aid status…

Filed under: Uncategorized — freelancefundraiser @ 9:31 pm
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One last thought (for the time being) about the recent Budget decisions on Gift Aid, that seems to get quietly ignored each year, is the failure of the Government to do anything about Corporate Gift Aid. In the past, (pre-2000), when companies gave donations to charities, the charity could claim back the tax on that gift, just as they did with individuals who made Deeds of Covenants with the charity.

All that changed with the introduction of Gift Aid in 2000. The Government scrapped the tax on company donations going to charities and instead allowed the companies to claim it back for themselves. The rationale, it appears, was that the companies would give higher donations, that after they claimed back the tax would mean it cost them less. For example, if they gave £128, they could claim back the tax, which would have been £28, so the charity got £128 and the company only forked out £100. Fine, if companies and individuals thought that way. Reality: they don’t!

So when asked why they hadn’t changed anything about corporate donations and Gift Aid, following last year’s Gift Aid consultation, it would appear the Treasury officials will only respond by saying, “It remains under review”. It’s easy to keep quiet about something you, the Government, introduced that went totally pear-shaped, isn’t it Mr Darling?

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