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| LOSS
OF PAYROLL GIVING BOOST TEMPERED BY NEW INCENTIVES |
17/04/04 |
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There
was a disappointed reaction from the sector over the government's failure
to change its mind about discontinuing its 10% supplement on payroll giving
donations.
Charities Aid Foundation chief executive Stephen Ainger, said that the sector
was losing a supplement that had "a dramatic impact" on employee giving,
with donations up from £37m in 2000 to £86m last year.
"What is particularly disappointing about the announcement is that the scheme's
success has come at a relatively low cost to government," he noted.
Disappointment was tempered by the announcement of cash incentives to small
and medium-sized companies to take up the scheme, however - although NCVO
complained about the lack of consultation with the sector.
Gordon Brown told the House: "Gift Aid is now worth £2.3bn a year to charities
and voluntary organisations who are at the heart of British civic life.
I propose a cash incentive to encourage small and medium sized firms to
set up their own payroll giving schemes."
The Giving Campaign welcomed the news, with director Amanda Delew saying
the announcement was "fantastic". "It should lead to more employers
offering the scheme, more donors using it and more charities promoting it,
which will generate millions of additional income for good causes across
the country," she said.
CAF also cautiously supported the move, but said there was more work to
be done. Aigner said: "The focus is now on finding alternative ways to encourage
companies and employees to give.
"Charities, government and companies must work together to build on
the growth in this enormously important source of income for charities.
We look forward to liaising with the Treasury on the government's proposal."
The Scottish Council for Voluntary Organisations (SCVO) said the budget
offers little financial comfort for Scotland's voluntary sector. Stephen
Maxwell, associate director at SCVO says: "Financially, this budget will
leave the voluntary sector in Scotland no better off and may make things
worse.
"The expected withdrawal of the 10% payroll giving supplement from the Treasury
will put a significant dent in the £2.3bn per annum that UK charities have
raised through the scheme.
"We will have to wait and see whether announced plans to encourage businesses
to set-up payroll giving schemes will offset this loss."
Jackie Ballard, director-general of the RSPCA, expressed her disappointment
by saying that charities' work would "not be possible" without
the support of payroll givers.
She said: "The government has always maintained it wants to help the
charity sector but today's decision to end this supplement, means charities
will see their payroll giving receipts suddenly fall by a staggering 10%.
"What is only a small sum of money to the government is a crucial source
of income for the charity sector and will have a large impact on all charities
who have to work hard to raise every much-needed penny."
Government plans to continue consulting heritage and conservation charities
over the proposed clampdown on gift aiding admissions was welcomed, as the
CFDG warned that the potential cost of the changes runs into millions of
pounds, and would particularly hit small independent museums.
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