Small charities have rebuffed the latest proposals by Government to stimulate Gift Aid by digital giving in a survey by the Foundation for Social Improvement (FSI).
The consultation suggested that charities should become liable if the donor is not able to cover the Gift Aid sum. Of the 68 small charities the FSI polled, 90% rejected the idea that charities should become liable for the tax bill.
Although the Consultation highlighted that donations via online and text giving were outstripping the use of Gift Aid through these platforms, 47% of the charities polled by the FSI didn’t think that shortening the Gift Aid declaration would encourage more people to donate with Gift Aid.
Pauline Broomhead of the FSI said: “Charities are operating in a harsh funding environment – balancing demand on their services with cash flow. Results from the Small Charity Index from June to September have shown that small charities are repeatedly dipping into their reserves to meet the increasing demand on their services.
“The small charities we work with have clearly stated they feel the proposals risk penalising them: the smallest organisations in our communities. With their stability already threatened small charities cannot take a further gamble over liability for a tax bill.”
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