The Charities Aid Foundation has welcomed the budget.
Commenting on the chancellor's speech, John Low, chief
executive of the Charities Aid Foundation (CAF), said: “The
Chancellor delivered some very welcome good news for charities.
Coming in an extraordinary budget when nobody expected much
help, this demonstrates recognition right at the heart of
Government that charities are the front line support for
many people during these difficult times.
“A number of measures were announced which will have
a positive impact on the Sector. Money from the £20million
Hardship Fund will be very welcome by those charities who
qualify. This will enable them to help more people adversely
affected by the recession even when facing hardship themselves.
" Many more charities and social enterprises could
benefit from the creation of a Social Investment Wholesale
Bank and the “Future Jobs Fund” will also enable
charities to create new opportunities for the young unemployed.
On the tax Increase for people earning over £150k
Low said: “The planned increased in income tax for
people earning over £150K creates an opportunity for
charities to increase donations from these taxpayers.
"If they don’t want to pay the extra tax then
it can be donated to charity and tax relief on 30% of the
donation can be claimed back in the year end tax return.
In a recent survey nearly one third of higher rate taxpayers
said this tax relief incentivises them to give to charity."
On the social investment bank, he said: “I welcome
the Government taking forward plans for a Social Investment
Wholesale Bank to support charities. This could be a very
good source of long term funding that strengthens the sector
and it’s good to see it firmly on Government’s
And on rules for major donations, he commented: “Further
consultation on the rules for substantial donors is very
welcome. In fact Government has today invited representatives
to contribute to this! It’s clear the Treasury and
HMRC are keen to ensure the rules do not inadvertently restrict
legitimate donations. We still hope that Government will
eventually abolish these rules which we believe are unnecessary.”