Government urged to review charitable giving rules
Charities
21st August 2009
Ministers should re-examine the current rules regarding Gift Aid for taxpayers on higher rates, it has been suggested.
The Institute of Fundraising is calling on the government to alter the system in its autumn pre-budget review to enable richer donors to give the full amount of relief they are entitled to reclaim back, something that may interest charity insurance customers.
If implemented, the changes would come into force during 2010 and would allow organisations to claim back higher-rate tax relief on behalf of donors, with donations of £1,000 worth up to £1,666.
Few individuals currently reclaim tax back on any but large donations, as the process is time-consuming and involves a self-assessment form and the institute suggested that its recommendations could "inspire more people to give".
Louise Richards, the body's director of policy and campaigns, stated: "The substantial increase in income resulting from the change will mean that charities are much better placed to survive the recession."
Gift Aid intends to provide tax relief on funds donated to charities in the UK in order to increase the value through a declaration signed by givers.
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