The Charity Finance Directors’ Group (CFDG) has given a “cautious welcome” to the Chancellor’s new Gift Aid scheme for admission fees, but said it is disappointed that the system was being changed at all.

The current system allows charities to operate day membership schemes where vistors make a donation attracting Gift Aid, rather than paying for admission. The new scheme, which was announced in the pre-budget report and is a continuation of an idea first mentioned in the November 2003 pre-budget, would phase this out.

Since November last year, CFDG has been working with the Inland Revenue to develop a new “additional giving” model, where Gift Aid will apply only where the donation is at least 10% more than the normal admission charge or where the donation allows unlimited right of admission for more than 12 months.

Shirley Scott, chief executive of CFDG, said: “Whilst we welcome the introduction of the additional giving model, we would have preferred it if the Government had left the scheme alone. Gift Aid on admission fees provided a valuable source of income for many of our members, particularly small independent museums. Whilst the new scheme will be of some benefit, it will still lead to a loss of revenue for many charities.”