# Gift Aid reform "still slow moving and disjointed" says Institute

- Link: https://fundraising.co.uk/2010/09/07/gift-aid-reform-quotstill-slow-moving-and-disjointedquot-says-institute/
- Published: 2010-09-07T13:52:29+01:00
- Author: Howard Lake

The Institute of Fundraising has expressed concern that progress to reform Gift 
Aid is “still slow moving and disjointed”. In particular, it is concerned that new
discussion around increased giving, donor motivations, and the UK embracing and 
replicating the American model of philanthropy means that the consultation around
Gift Aid is departing from its original brief.

The Institute was responding to the Digital Giving presentation given by ResPublica
on 6 September 2010.

Lee Grant, Tax-Effective Giving Project Manager at the Institute of Fundraising,
said: “Donors do not choose to give because of Gift Aid; they give to support good
causes. Gift Aid simply increases the value of their gifts. Higher rate taxpayers
enjoy partial-relief and therefore often adjust their gifts accordingly. Our system
is not comparable with that of the USA; primarily because all the relief goes to
the donor in the States and this can be used to motivate donors to give more.”

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He added: “It is quite alarming that in 2010, we are discussing new technologies
in Gift Aid in the same breath as ‘the internet’ and ‘SMS donations’; this is hardly
revolutionary stuff. However, the fact remains that the sector needs to catch up,
and what we have come to expect as ‘the norm’ in the commercial sector is not necessarily
being replicated in ours”.

The Institute states that it welcomes any reform of Gift Aid that “creates an opportunity
to increase charities’ income from voluntary gifts and that reduces the administrative
burden and costs for all organisations involved in administering Gift Aid”.

It is particularly keen to ensure that no voluntary groups are excluded from Gift
Aid and the choice it offers their donors to increase their gifts. It argues that
recent changes to the application process and the introduction of the fit and proper
persons test is already discouraging new charities from using the relief.

The Institute continues to call on Government to extend transitional relief to maintain
Gift Aid at its current level until suitable reforms have been implemented to address
the deficit post-transitional relief and simplify the process sufficiently to include
all voluntary organisations.

www.institute-of-fundraising.org.uk

 * **[£750 million of gift aid unclaimed because of ‘antiquated’ system](https://fundraising.co.uk/2010/09/09/750m-gift-aid-unclaimed-because-039antiquated039-system/)**(
   9 September 2010)
 * **[Gift Aid is about to get harder](https://fundraising.co.uk/2011/02/08/gift-aid-about-get-harder/)**(
   8 February 2011)
 * **[Budget helps with Gift Aid and legacies](https://fundraising.co.uk/2011/03/23/budget-helps-gift-aid-and-legacies/)**(
   23 March 2011)
