# Chancellor announces Treasury office for the voluntary sector

- Link: https://fundraising.co.uk/2006/03/22/chancellor-announces-treasury-office-voluntary-sector/
- Published: 2006-03-22T00:00:00+00:00
- Author: Howard Lake

In his Budget speech before the House of Commons, Chancellor Gordon Brown has announced
that a new office will be set up in the Treasury to support the voluntary sector
and guide future Government funding programmes.
Mr Brown said: “To further support
the voluntary sector as a whole, which is at the heart of life in every community,
we will now set up in the treasury, an office for the voluntary sector – including
for faith as well as non faith charities.

 

 

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“It will advise on Gift Aid, Futurebuilders and conduct a nationwide consultation
with the voluntary sector to inform spending decisions.”

 

 

The Institute of Fundraising welcomed the creation of a new Office of Charity and
Third Sector Finance in the Treasury. Megan Pacey, director of policy and campaigns,
said: “The establishment of a new Treasury Office linking up with the existing Home
Office, DTI and HMRC charity teams, is an important step that will provide charities
with much welcome support.

 

 

“The proposed review of the future role of charities in social and economic regeneration
will see greater consultation and collaboration with the third sector than ever 
before.”

 

 

Ms Pacey also welcomed a range of new measures in the Budget to protect tax-effective
giving and the reputation of charities by closing loopholes that had previously 
left charitable tax reliefs vulnerable to abuse and exploitation. She said: “The
Institute of Fundraising firmly believes that tax relief must be in the interests
of and of benefit to the charity. Any exploitation of the tax reliefs for tax avoidance
purposes endangers the integrity of tax-effective giving and the reputation of charities
and the sector more widely.”

 

 

Mr Brown said from April this year Company Gift Aid rules will be brought into line
so that all companies are subject to the same rules and regulations and all charities
will now be subject to the same tax treatment in relation to charitable and non-
charitable expenditure.

 

 

HM Revenue and Customs will also now consider a major donor to be an individual 
or organisation that donates £25,000 or more to a charity within a 12 month period
or £100,000 or more to a charity within a six year period.

 

 

The Institute has published a summary briefing document outlining these changes 
and how they will impact charities on its website.

 

 

The National Council for Voluntary Organisations (NCVO) also welcomed the creation
of an Office of Third Sector Finance in the Treasury.

 

 

Stuart Etherington, chief executive of the NCVO, said: “In our General Election 
Manifesto last year, NCVO called for a ministerial position with responsibility 
for the sector, and the establishment of a ‘Third Sector Office’ in the Treasury
goes a considerable way towards meeting this. It is vital that it is coordinated
in a strategic, cross-departmental way.

 

 

“The Comprehensive Spending Review process is an opportunity for us to develop the
long-term priorities for the sector, and it is welcome that the Budget report states
that the Government will consult and recognise the voluntary and community sector
throughout this review process.

 

 

“In order to ensure that the review develops in ways that will tangibly benefit 
individuals and communities, I am delighted to second NCVO’s director of public 
policy, Campbell Robb, to the Treasury to play a leading advisory role.”

 

 

Commenting on the Chancellor’s speech, Dame Elisabeth Hoodless, executive director
of Community Service Volunteers, the UK’s largest volunteering charity, said: “We
welcome this move. It’s only right when you consider that the private sector has
its own department in the DTI.

 

 

“The not-for-profit sector contributes the equivalent of one million people to the
labour force and is long overdue in receiving its own office in Government.

 

 

“This initiative highlights the potential that the Third Sector has to tackle entrenched
problems in a fresh and creative way.”

 

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