Fundraisers fear government plans to boost small charities’ coffers will fail unless it listens to their concerns.

Peter Lewis, chief executive of The Institute of Fundraising, said: “The Government must be commended for trying to help small charities with GASDS but unfortunately their best intentions may be undermined by the detail of these proposals.

“The plans are far too complex and bureaucratic and are likely to turn off small charities from participating in the scheme and boosting their income.”

As part of its plans to support charitable giving, the Government introduced the idea of the Gift Aid Small Donation Scheme.

The Government proposes each charity will be allowed to claim a top-up equivalent to Gift Aid on up to £5000 of small donations under £20.

It means £1250 could be claimed without having Gift Aid declarations.

But the Government’s proposals insist charities must have a good compliance record of at least three years of making Gift Aid before becoming eligible for GASDS.

Lewis added: “I can fully understand the Government is concerned about fraud but there are other measures that could be used to check legitimacy and financial probity

“And the rule that small charities must show they have claimed Gift Aid for three years is frankly ridiculous.

“A key driver behind GASDS was to help those small charities who did not or were unable to claim Gift Aid - so in effect these plans may ultimately be self-defeating.”

Lewis said the real losers may be the small community projects which the scheme was supposed to help.

He noted: “I do hope the Government revises the scheme as it has the potential to make a difference to thousands of small charities up and down the country.

“If it’s done right it could boost small scale fundraising efforts for good causes and be a real support for the Government’s Big Society idea.”

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