One month to go to before value of Gift Aid drops
Howard Lake | 10 March 2008 | News
The drop in income tax to 20p in the pound from midnight on 5 April 2008 means that the value of each Gift Aid donation after that will be reduced. According to Charities Aid Foundation, quoting HMRC figures, UK-based charities stand to lose out on roughly £90 million of Gift Aid income a year as a result.
Currently every pound given to a charity using Gift Aid is worth £1.28 for them. After 5 April this will drop to £1.25.
John Low, Chief Executive of CAF has urged people planning to give lump sums to charity to make their donation before 5 April so that charities can claim back the tax. The Institute of Fundraising has issued a similar call.
“Every pound counts”, said Low, “particularly as we fear that this will be a hard year for charities anyway due to the economy slowing. If you are a UK taxpayer and are planning to make a one off donation it would be best for your charity if you give before 5 April.”
Age Concern Director General Gordon Lishman said: “We stand to lose £40,000 next year alone. This is money we will have to find from somewhere else if are we are to continue all our work to fight for a better deal for the most vulnerable older people in the country. One off donations before the end of the financial year to help us make up the shortfall would be extremely welcome.”
www.cafonline.org
About Howard Lake
Howard Lake is consultant editor of UK Fundraising. He founded the site in 1994 and successfully sold it in 2022. As director of Giving X Ltd he is exploring growing giving on a massive scale.
He is the founder of Fundraising Camp and co-founder of GoodJobs.