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| HUGE
DROP OFF IN DONATIONS IN CONTRAST TO ECONOMY'S GROWTH |
13/11/03 |
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Giving
to charity has fallen by 25% when considered as a percentage of the gross
domestic product (GDP) over the last decade, according to new research.
Speaking at the CAF Annual Conference, the group's chief executive Stephen
Ainger highlighted the funding challenges facing the voluntary sector.
He told delegates that, although individual giving has risen with the growth
in more professional fundraising and the introduction of new tax incentives
in 2000, it is still not increasing in line with the growth in the economy.
Ainger said: "This is a major issue for charities, which can only be addressed
by changing the culture of giving which includes the need for charities
to be much more transparent about what they do and the impact they have.
"The current lack of transparency in many areas in the sector is making
it harder to reverse this long term decline in giving. Greater transparency
will lead, we believe, to increased support for charities from donors and
enhanced confidence in us."
He emphasised that the sector should build on its successes, and that many
charities were also failing to take advantage of tax incentives currently
provided by government.
Ainger said: "It is a scandal that only about one-third of voluntary giving
is tax effective. We must all seek to ensure that the government's tax concessions
are fully used.
"Receipts in payroll giving have grown by 118% since 1999. The government's
10% supplement has clearly had a positive effect on this figure and the
number of employers offering schemes has doubled from 5,000 to 10,000 over
the last five years. Any plan to end the supplement at this stage would
be short-sighted."
He pointed out that public sector funding of voluntary organisations had
now reached 40%, with some parts of the charity sector receiving well over
50% of all their funds from central and local government.
"Charities need to examine how this growth in government funding might affect
the behaviour of donors. Once again, transparency is central as it will
be important that donors fully understand why some charities are publicly
funded through contracts to this extent.
"Also, we need ensure that the initiatives and programmes of charities,
which receive substantial government funding, are not dominated by a government
agenda."
www.CAFonline.org
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