Maximising Charitable Donations

A report by the National Audit Office (NAO) has cast a spotlight on gift aid and reliefs on donations.  Gift aid currently accounts for some £1billion in extra revenue for charities, equivalent to some 2% of total charitable revenue. As such the report concludes that gift aid is seen by charities as an essential fundraising tool.

However, the report is somewhat critical of the lack of evidence on whether changes made in 2000 actually resulted in an increase in charitable giving. Alongside seven key action points the report also suggests that the government could do more to promote the benefits of both gift aid and donations to the charity sector.

Commenting on the report the Institute of Fundraising said “in challenging times, the support that Gift Aid provides charities is more important than ever - this is a good opportunity to work with Government to get the more in-depth evidence of the role Gift Aid plays in incentivising giving.”

With the voluntary sector very much to the fore, the government has also announced changes to the Community Amateur Sports Club (CASC) scheme which will enable some 40,000 sports clubs to benefit from increased trading and rental income allowances, thus reducing their tax bills.  Charities and other not for profit voluntary organisations are also eligible to apply for 0300 telephone numbers.  These numbers are charged at the standard rate, whether called from a landline or mobile and calls can often be free if the caller has an ‘inclusive minutes’ package,  in contrast to 0800, 0845 and 0870 numbers which can prove expensive when called from a mobile.  This means that charities with 0300 numbers are helping to make it easy and cost effective for potential donors or volunteers to call.

Charities which advertise the 0300 number can either have calls to that number switched seamlessly to an existing 01 or 02 phone line or can take advantage of a more advanced package which could include services such as switching to mobile or to international numbers – something which is of great potential benefit if responding to an overseas emergency.

Callagenix supports the work of charities and other not-for-profit organisations by offering reduced rates. There are also possible promotional opportunities available on the Callagenix site.  We will be keeping an interested eye out for any follow-up action which the government or HMRC takes in response to the NAO report and will report it on our site if appropriate.

Written by Alison