Two reforms could unlock £74bn for charity from reasonably well-off
Howard Lake | 11 January 2010 | News
Two tax reforms could generate an additional £74 billion for charity from the UK’s middle classes, claims Professor Paul Palmer in ‘A Step Change in UK Philanthropy’, published today by the Centre for Policy Studies.
By making charitable donations more attractive to the reasonably well-off among Britain’s middle classes (defined as those with net wealth of more than £500,000), Palmer believes that giving in the UK could be transformed.
The two proposals from the Professor of Voluntary Sector Management at Cass Business School are based on Canadian and US models of tax-effective giving.
The first reform would enable individuals to set up ‘Remainder Trusts’ in which sums of £50,000 or more could be settled. Donors would retain control over the capital, and could reclaim it if they wished, during their lifetime.
The second reform would be the creation of a new type of charity, the ‘Personal Charitable Trust’. These would enjoy the benefits of “a light touch regulation” free of many of the onerous reporting burdens imposed on larger charities. They would also offer donors the option of anonymity.
Professor Palmer believes that, if implemented, these reforms could unlock perhaps 10% of the £740 billion held by the 820,000 Britons with a net wealth of more than £500,000.
Professor Palmer has been a Member of the Charity Commission SORP committee, a research adviser to the Charity Commission and an independent consultant on charities to UBS Wealth Management.
The report can be downloaded at no charge from:
www.cps.org.uk/cps_catalog/a%20step%20change%20in%20uk%20philanthropy%20-%20version5.pdf
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.