CAF commissions new study into Gift Aid reform

The Charities Aid Foundation (CAF) has commissioned a major new study into the reform of Gift Aid.

The work, which will be carried out by the independent, public policy think-tank ResPublica, will consider how technology can be used to transform and simplify the Gift Aid process so that charities and donors can maximise the potential of this tax relief.

CAF estimates that around £750 million of relief goes unclaimed each year.

ResPublica will explore the opportunities to modernize tax-effective charitable giving and set out practical solutions.

The research team will capture expertise and knowledge from the charity sector and government and will also involve relevant experts from the technology, economic and political arenas.

Commenting on the announcement John Low, chief executive of the Charities Aid Foundation, said: "Since the original Gift Aid consultation in 2007, charities have been calling for simplification of the process of claiming this tax relief.

"We support the recent Government exploration of more radical structural changes, such as introducing a composite rate, but have always believed that we also need modernisation of the system through the intelligent use of technology to provide long-term and sustainable support to the sector.

"We chose to commission with ResPublica because they are known for coming up with radical new ideas for complex social and economic problems. I hope their report will provide a bold blue-print for tangible and realistic reform, that could be implemented early in the next parliament."

Philip Blond, director of ResPublica, said: "This is an opportunity to change the terms of debate on an issue of vital importance to charities and to civil society as a whole.

"If we can use technology and innovation to cut the red tape around gift aid, we can get more money to charities that help so many people - and so take practical steps to build a better society. Together with the Charities Aid Foundation we will be bold and present a radical yet practical programme of reform for an incoming Government.

The findings of the research will be released in Summer 2010.