US donated leave idea could work in the UK, say accountants
Howard Lake | 27 September 2005 | News
Hartlepool-based accountancy firm Horwath Clark Whitehill says that a new initiative from the American Inland Revenue Service (IRS) would benefit charities in the UK if a similar idea were transferred here.
Following the devastation wrought by Hurricane Katrina, the IRS has implemented new legislation to try to increase the amount of money donated to the crisis fund.
Under the new programme, employees can donate any holiday, sick or personal leave in exchange for their employer making cash payments to qualified tax-exempt organisations that provide relief for victims of Hurricane Katrina.
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Horwath Clark Whitehill believes that if similar legislation was introduced to the tax system in this country, donations to charities would rise considerably.
Graeme Surtees, tax partner at Horwath Clark Whitehill, explained: We are approaching a time of year when many of us have the odd day or two left in our holiday entitlement and some of us might end up not using it.
“Rather than simply let the odd day be written off, a scheme similar to the IRS programme could allow employers to give an employee’s salary for that day to an approved charity of their choice and offer tax relief on that donation.”
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.