The government has presented to parliament a bill that aims to reform the Gift Aid Small Donations Scheme.
The Small Charitable Donations and Childcare Payments Bill has been produced in an attempt to simplify the Gift Aid Small Donations Scheme, which launched in 2012 and enables charities to claim a Gift Aid style payment on small cash donations of up to £20.
The new regime will clarify the current rules, simplify eligibility conditions and criteria for newer and smaller charities to benefit, and in turn reduce the admin burden. Contactless payment acceptance will also be added. The community buildings rules will also be amended to allow more charities to benefit from the work they carry out in their local communities.
“The Small Charitable Donations Bill could be good news for charities, particularly for smaller organisations which have often struggled to unlock the benefits of Gift Aid. This provides a real opportunity to simplify the scheme and make it fit for the 21st century,” John Low, chief executive of the Charities Aid Foundation told Charity Digital News.
The bill is due for its second reading in the House of Commons on 11 October.
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