# CAF challenges charities to avoid reliance on government funding

- Link: https://fundraising.co.uk/2003/11/03/caf-challenges-charities-avoid-reliance-government-funding/
- Published: 2003-11-03T00:00:00+00:00
- Author: Howard Lake

**Charities Aid Foundation’s Chief Executive Stephen Ainger will challenge charities
at this month’s CAF Annual Conference to diversify income away from statutory funding.**

Top charities are increasingly reliant on government funding and Stephen Ainger 
will be using the upcoming CAF Annual Conference & Exhibition 2003 to highlight 
the need for charities to retain their independence.

Ainger commented: “in the last five years income from statutory sources to the top
500 charities has grown by 36% in real terms, in contrast with a growth of 11% in
total income over the same period. In this environment it is vital that we maintain
a real diversity of income and not become dependent on any particular source.”

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He added: “Public sector funding is growing to a point where the Government now 
sees itself as a shareholder in the charity sector. The proportion of total income
from state sources has already passed the 50% mark amongst the major service-providing
charities in the elderly and general welfare sectors, and is very close to it amongst
the disability and youth sectors.”

Ainger’s speech at the conference will also encourage charities to take full advantage
of the tax-effective schemes already introduced by the Government. In light of the
fact that charities as a whole are not making enough of these opportunities, he 
will argue that it is difficult for charities to propose that the Government should
be introducing new tax reliefs.

“It is crucial for charities to maximise the resources already available. It is 
a scandal that only 27% of voluntary giving is tax-effective. We must get our act
together”, he said.

The CAF Annual Conference & Exhibition 2003 is sponsored by NatWest and The Royal
Bank of Scotland, and will be held on 13 November 2003, at One Great George Street
Conference Centre, London.

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