CFDG manifesto asks for level playing field

The Charity Finance Directors' Group (CFDG) has launched its election manifesto, A level playing field, asking for proportionate, effective regulation; the opportunity to deliver innovative public services; a tax system that recognises how charities operate and does not unduly penalise them; and the development of a social investment wholesale bank.

David Membrey, CFDG's acting chief executive, said: "The issues we raise focus on reforming processes and regulations in order to effectively help charities do what they do best: focus on fulfilling their missions."

CFDG is asking that the Government focuses on better assessing the impact of regulation on charities, and that they allow both primary and non-primary purpose trading to be undertaken within charities (thus dispensing with the need for trading subsidiaries).

Rohan Hewavisenti from the British Red Cross said: "We would estimate the savings of dispensing with the requirement to have trading subsidiaries... to be circa £50k."

Charities and Government need to work together to remove the barriers to public service provision by the sector.

CFDG is asking the Government for improvements in service design, commissioning, and funding, and for more focus on building better relationships.

Speaking at the CFDG Election Debate, Angela Smith MP, minister for the Third Sector, supported CFDG's request for charities to be more involved in the design of service specifications and tender processes, saying that one of best ways to improve commissioning is for the sector to be "involved with helping to develop what the bid is.. at an early stage."

CFDG is asking for a root-and-branch review of the charity tax regime, for fundamental reform of the Gift Aid system within one year, and for charities to be able to undertake joint ventures without attracting a VAT penalty.

Mark Salway from CARE International UK suggests that implementing this section of the directive could result in VAT savings as high as £30,000 - £40,000 per annum.

Speaking at the CFDG Election Debate, Nick Hurd MP, shadow minister for charities, Social Enterprise and Volunteering, added: "There's probably a case for an overall review of how the sector is treated through the tax system."

Finally, CFDG is asking that the Government sets up a Social Investment Wholesale Bank that supports sustainable funding for the third sector, and builds on existing cross-party support.

Speaking at the CFDG Election Debate, Angela Smith also said: "I'm pleased to see that one of [CFDG's] manifesto commitments is a Social Investment Wholesale Bank."

The full manifesto can be found here: http://www.cfdg.org.uk/cfdg/influencing_election_watch.asp?dm_i=5X9,3SL5,NBNP8,BSOP,1