Charities welcome end to VAT charges for text donations
Charities
29th July 2009
Mobile phone companies will no longer charge charities for donations made by text message, something that has been welcomed by the third sector.
A campaign group of organisations - led by former chair of the Institute of Fundraising Joe Saxton and head of policy and public affairs at the Charities Aid Foundation Hannah Terrey - has been pressing the telecoms industry to cease charging donors tax since the government confirmed in March 2008 that it should not happen.
The lobby coalition announced that text donations for charities will now be given unique numbers beginning with a seven that will identify them and ensure that mobile operators do not deduct VAT.
"This is a giant step forward," Mr Saxton said. "We estimate donations from this type of giving could reach £100 million in five years time."
However, lobbyists also want mobile operators to reduce the rates they charge for donations by text to between five and ten pence per message.
In related news, a new report by the UK Cards Association has indicated that contributions made to charity by both credit and debit cards rose over the first four months of 2009, despite the recession.
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