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A correct decision always deserves recognition, no matter what’s gone before so let’s say #thanksgeorgePosted: May 31, 2012
Sir Stuart Etherington, Chief Executive of the National Council for Voluntary Organisations, said: “We are delighted that the Chancellor has listened to reason and pledged to drop the charity tax. This is a victory for common sense and validates the strength of feeling from the thousands of organisations who lent their weight to the Give it Back, George campaign. This is a great day for philanthropy.”
“Huge thanks and well done to all the campaign supporters”.
Mandy Murphy 07714 243 942
Chloe Stables 07507 558 597
Spokespeople are available for reaction
The original post can be found on the NCVO website
“We are delighted that the Government has responded to the challenging calls from philanthropists and charities across the country and taken the bold decision to exempt charitable donations from the cap on tax relief.
“We realise the Government is responding to truly exceptional financial circumstances and is having to make tough decisions about public finances. We acknowledge and welcome the Chancellor’s decision to do the right thing and exempt charity donations from the cap. We thank Ministers for the support they have shown to charities large and small, which are so vital to the health of our country.
“The Government’s ambition to strengthen the culture of giving, encourage philanthropy and build a Big Society is something we strongly support. We are enthusiastic about working with Ministers to encourage people to give time or money to support the causes we all care about.”
The original post can be found on the CAF website
Today Chancellor George Osborne announced that he will drop the plans to limit tax relief on charitable giving. We will post our official response shortly.
Thank you to all our supporters -this wouldn’t have happened without you!
The Give It Back, George campaign team
Dr Catherine Walker from Directory of Social Change has written an excellent summary (PDF) of the story so far. Don’t be alarmed by the length of the document -it is well written and gives you an overview of the evidence and theory behind the Chancellor’s 2012 Budget 2012 proposal for an income tax relief cap to include charitable donations.
In a hurry? Read the summary:
In the Budget 2012 the Chancellor casually announced, with no forewarning, a cap on income tax reliefs to include charitable giving schemes. A mad scramble for hard data on the potential effects of this ensued with little agreement on figures from either side. This paper summarises the issues involved and proposes some new figures based on our own and others calculations. We estimate that the proposed income tax relief cap could save HM Treasury £100 million in tax on charitable gifts, while charities could lose out by £500-£600 million in donations. And this may be a very conservative estimate, because donors don’t just react to the price of giving, they are also influenced by the culture within which they are giving. We argue that the real effect could be multiplied many times due to the negative messages this cap is giving out about giving. It is this psychological effect of the proposed cap which is the hardest to quantify, yet potentially the most damaging, and the hardest to rectify if this situation goes on for much longer.
Download the paper (PDF) here.
Charities renewed their call for the Government to listen to the overwhelming demands to exempt charity donations from the planned cap on tax reliefs in the wake of u-turns over VAT on hot takeaway food and static caravans.
They called on Ministers to think again as a new poll showed that the overwhelming majority of the public believe charities cannot be expected to fill gaps in public services if Ministers cap tax relief on major donations which support their work.
The ComRes Survey, commissioned by the Charities Aid Foundation, also found people were worried that plans to cap tax relief on donations undermined the Government’s concept of a Big Society.
Charities have strongly backed the Government’s commitment to increasing giving and promoting voluntary work through the idea of a “Big Society”.
But the survey found that more than three quarters of people warn that the Government cannot expect charities to play a greater role in delivering public services while also trying to cap tax relief on big donations.
Nearly two thirds of people said that the proposed cap on charitable tax reliefs contradicts the Prime Minister’s vision of a Big Society. And nearly six out of 10 agree that Government cuts are undermining the idea of a Big Society.
Overall, a clear majority of people (61%) oppose the Government’s proposal to cap tax reliefs for charitable donations, including most Conservative (53%) and Liberal Democrat voters (64%).
More than 1,000 charities have backed the campaign against the tax relief cap, warning that it will hinder the ability of charities to carry out important work in areas such as social care, medical research and treatment, higher education and the arts.
The survey found:
- More than three quarters (76%) of people agreed that the Government annot expect charities to play a greater role in service provision while at the same time introducing a cap on charitable tax relief.
- Nearly two thirds of people (61%) agree that the proposed cap on charitable tax relief contradicts the Prime Minister’s vision of a Big Society·
- More than seven out of ten (71%) agree that charities are being forced to fill the gaps in public services left by public sector cuts.
- Three quarters (75%) agree that in the current economic climate, it is more important than ever that the Government supports charities.
- Nearly six out of 10 (59%) agree that Government cuts are undermining the idea of a big society
John Low, Chief Executive of the Charities Aid Foundation, said:
“The Government has shown it is prepared to listen on issues like the pasty tax and the caravan tax. Now is the time for them to listen to charities, donors and their own supporters to do the right thing and exempt charitable donations from the damaging tax cap.
“The Prime Minister’s vision of a Big Society could be transformational, but risks being undermined by measures such as the cap on tax relief for charitable donations.
“We are fully behind that idea of encouraging people to give their time and money to good causes that benefit others, and want to support the Government in making their vision of social action a reality.
“This survey shows that the public are worried that the Government’s idea of a Big Society is undermined by measures such as the proposed cap on tax relief for donations to charity.
“We are sure that Ministers do not want to see the idea of a Big Society undermined at a time when charities are facing financial pressure and increasing demand for services. We want to work with the Prime Minister and the coalition Government to promote an even more generous giving society.
“It is important that Government gives charities the backing they need to make the vision of a Big Society a reality, which is why they must exempt charities from the cap on tax relief so charities can play the biggest possible part in keeping vital services running in these times of austerity.”
* ComRes surveyed 2044 GB adults online between 27 April and 29 April 2012. Data were weighted to be fully nationally representative. ComRes is a member of the British Polling Council and abides by its rules. Full data tables are available at http://www.comres.co.uk/