Plea to new government to reform Gift Aid to increase uptake by charities
Gift Aid should be more user-friendly in a bid to give charities a financial lifeline, the Charities Aid Foundation (CAF) has urged.
New figures published by HM Revenue and Customs show that too many charities are missing out on tax reliefs which they are entitled to.
Analysis of the latest statistics shows that tens of thousands of registered charities did not receive Gift Aid on donations in 2013/14.
CAF said the figures highlight the need for a long-overdue reform of Gift Aid to make it fit for the 21st century. Research by CAF in 2012 showed that fewer than two in five people applied Gift Aid to their donations, suggesting that good causes are missing out on millions of pounds each year.
Gift Aid is vital for charities, but it simply isn't fit for purpose - John Low
One in five smaller charities currently say they are struggling to survive, according to separate research published by CAF and the Association of Chief Executives of Voluntary Organisations last month.
CAF chief executive John Low said: “Gift Aid is vital for charities, but it simply isn’t fit for purpose in the 21st century. It needs to work better for the millions of people who give to charities every year.
“Too many people are put off by a cumbersome system which requires them to fill out forms every single time they make a donation.
“This should be addressed by introducing a single Gift Aid declaration that people can use to cover all their charity donations. Such a reform will make it easier for people to add Gift Aid to all of their giving whether via smartphones, tablet computers or more traditional methods.”
Research suggests an additional £94 million of Gift Aid could be reclaimed every year if uptake increased, CAF said.
Ahead of the general election, the Institute of Fundraising and the Charity Finance Group called on the next government to work with charities to improve the take-up of Gift Aid.
They want the Treasury to commit to ensuring that "no steps are taken that would reduce the amount of eligible Gift Aid claims".
It also says that the government should work to make increasing the amount of Gift Aid claimed a priority.
