Gift Aid increase needed to tackle Covid-19 fundraising shortfall, say charity leaders

The level of Gift Aid charities receive should be boosted to tackle income shortfalls from the Covid-19 pandemic, according to charity leaders.

A group of charities and voluntary sector organisations, including Charities Aid Foundation (CAF) the Institute of Fundraising and the Charity Finance Group, want the government to temporarily increase the Gift Aid level that can be claimed on donations.

The call comes as charities look tackle a major drop in income caused by the Covid-19 pandemic.

According to research from the group, charities are, on average, planning for their income to drop by a quarter this year.

More Gift Aid = more impact! #GiftAidRelief can make every donation count at a time when support for charities is #NeverMoreNeeded. Find out more on our page below. @IoFtweets @ACEVO @CharityTaxGroup @CharityRetail @sccoalition @NCVO @CFGtweets
— Charities Aid Foundation (@Caf) June 25, 2020

The coalition wants the Gift Aid claimed on every eligible donation to increase by a third, up from the current increase of one-quarter. The proposals would mean that a £100 donation would increase from £125 to £133.33 once Gift Aid had been claimed.

Others involved in the campaign include the National Council for Voluntary Organisations (NCVO), Cancer Research UK, the British Heart Foundation as well as smaller charities, such as Shropshire Cat Rescue.

They want the increase in place for two years to help the charity sector recover from the pandemic. It is hoped the move will add a total of £450m to charity income.

“This is a straight-forward, quick and tangible way to help charities at this most challenging time in their history. It is an emergency response in a time of crisis for the very charities providing vital services in the UK and around the world,” said CAF chief executive John Low.

NCVO chief executive Karl Wilding added: “This temporary tweak to the Gift Aid system would provide a much needed boost to charities’ fundraising income, enabling them to increase support for communities across the country as they struggle with the economic and social consequences of the coronavirus pandemic.’