A new report by the Charities Aid Foundation (CAF) published
today reveals that almost a third (32%) of UK adults don’t
know they can give to charity tax effectively.
Unprompted only one in three adults could name Gift Aid,
7% said payroll giving and 1% cited legacies as a means
of giving tax-effectively.
Last year Gift Aid was worth £900m to charities but
CAF estimates that around £752m goes unclaimed every
Most peoples’ experiences of using tax-effective giving
are positive, with almost all (98%) Gift Aid users and 84%
of payroll giving users satisfied with the experience. However,
less than half of non-users are positive about Gift Aid.
The report, The Public Bond with Tax-Effective Giving
in the UK, presents the results of a survey of 1,307
adults into public awareness and usage of all tax-effective
giving methods: Gift Aid, payroll giving, legacies, gifts
of land or buildings, and share giving.
The paper also sets out CAF’s policy recommendations
to improve take-up of tax-effective giving.
The survey found that Gift Aid is by far the most commonly
used method of giving tax- effectively with over a third
of respondents (37%) having ever used it, compared to less
than one tenth of respondents who had used any other form
of giving tax- effectively.
Awareness of these methods of giving is highest amongst
higher rate tax payers who are almost twice as likely to
be aware of Gift Aid and payroll giving as basic rate taxpayers.
• Government should work with the sector to raise
awareness of Gift Aid amongst the public through creative
• Government and the sector should work with financial
advisors to raise awareness and understanding of tax-effective
• The research shows that if non-users are encouraged
to try these methods of giving they are more likely to use
them again in the future. Therefore Government should work
with companies to improve access to payroll giving.
• Government should continue to work with the sector
to simplify Gift Aid in order to make it easier for spontaneous
gifts to be tax efficient, for example text donations.
• The case for enabling an opt-out approach to Gift
Aid should be further explored by Government and the fundraising
• The majority of higher rate taxpayers would be willing
to give their relief on charitable donations back to charity
but the current system puts them off.
Commenting on the publication of the report, CAF CEO John
Low, said: “Despite concerted effort by governments,
fundraisers and intermediaries this report reveals a gulf
in public awareness and understanding of tax-effective giving.
“There is significant scope for further improvements
to and promotion of tax-effective giving. In these difficult
financial times tax-effective giving is an excellent way
to boost donations and help charities support the most vulnerable
“I hope this evidence and the policy recommendations
will help inform Government and the sector and assist in
realising the potential of our generous society.”
A full copy of The Public Bond with Tax-Effective Giving
in the UK can be found on CAF’s website: http://www.cafonline.org/