Share

Text donations no longer subject to VAT

Text donations no longer subject to VAT
News

Text donations no longer subject to VAT

Fundraising | 4 Aug 2009

Donations made by text message will no longer be subject to VAT, the Mobile Data Association has announced today.

The move, which comes after years of lobbying from several voluntary sector organisations, and means charities of all sizes will be able to receive an extra 15 per cent on donations.

The system has been approved by mobile network operators Orange, 3, T-Mobile, Telefonica, 02 and Vodafone.

New codes

Under the new system charities that register will be assigned a new five-digit SMS code, which will begin with ‘70’.

Any donations sent to the new codes will still be subject to operator charges which attract VAT, but the VAT usually applied to the remainder will be waived from today.

Before now a £1.50 donation would typically result in a 95p donation to charity. When VAT is no longer charges an estimated £1.10 will reach the charity.

Hannah Terrey, head of policy and public affairs at the Charities Aid Foundation, said:  "It's great news that the mobile phone companies have been able to agree a way forward to end this practice, which is unfair on donors and charities.

“Now they have made this leap forward we hope the mobile phone companies will bring down their charges too.”

Former chair of the Institute of Fundraising, Joe Saxton, said: “This is a giant step forward. Currently VAT and other charges are putting charities and donors off donating by text. We estimate donations from this type of giving could reach £100 million in five years’ time if charges come down to around 5p-10p per text in total.”

“WIN, one of the companies that processes texts for mobile phone operators has agreed to process text donations for free. What we need now is for one of the socially aware mobile phone companies like Virgin or Vodafone to take the lead in lowering their charges. Richard Branson – we need you!”

Comments

[Cancel] | Reply to:

Close »

Community Standards

The civilsociety.co.uk community and comments board is intended as a platform for informed and civilised debate.

We hope to encourage a broad range of views, however, there are standards that we expect commentators to uphold. We reserve the right to delete or amend any comments that do not adhere to these standards.

We welcome:

  • Robust but respectful debate
  • Strongly held opinions
  • Intelligent relevant discussion
  • The sharing of relevant experiences
  • New participants

We will not publish:

  • Rude, threatening, offensive, obscene or abusive language, or links to such material
  • Links to commercial organisations or spam postings. The comments board is not an advertising platform
  • The posting of contact details for yourself or others
  • Comments intended for malicious purpose or mindless abuse
  • Comments purporting to be from another person or organisation under false pretences
  • Gratuitous criticism, commentary or self-promotion
  • Any material which breaches copyright or privacy laws, or could be considered libellous
  • The use of the comments board for the pursuit or extension of personal disputes

Be aware:

  • Views expressed on the comments board are left at users’ discretion and are in no way views held or supported by Civil Society Media
  • Comments left by others may not be accurate, do not rely on them as fact
  • You may be misunderstood - sarcasm and humour can easily be taken out of context, try to be clear

Please:

  • Enjoy the opportunity to express your opinion and respect the right of others to express theirs
  • Confine your remarks to issues rather than personalities

Together we can keep our community a polite, respectful and intelligent platform for discussion.

Free eNews

VSO's income increased by £11.6m in 2013/14

30 Jul 2014

Voluntary Services Overseas saw its income increase by 20 per cent to £68.7m in 2013/14, according to...

Syria and Haiyan appeals boost Oxfam income by 6 per cent

30 Jul 2014

Oxfam’s total income rose by more than £21m to £389m in the year to March 2014, according to its annual...

Man admits stealing £300,000 from collections for Help for Heroes

29 Jul 2014

A man has admitted pocketing £300,000 donated by members of the public who believed it would go to Help...

Commission investigates charity over concerns it was used for private benefit

29 Jul 2014

The Charity Commission has opened a statutory inquiry into grant-giver the Catalyst Trust over concerns...

PTA-UK: Big Society Network chief was confident of funding

28 Jul 2014

PTA-UK has revealed that it turned down an invitation from Big Society Network to be a partner in its...

Big Society Network chair’s company gave £64k to Conservative Party

28 Jul 2014

A company owned by the chair of Big Society Network donated services totalling more than £54,000 to the...

Online donations forms are too long and cost charities donations, finds report

28 Jul 2014

One third of leading charity websites require potential donors to complete more than 20 actions before...

Greenpeace video removed from YouTube following copyright claim

14 Jul 2014

A campaign video by Greenpeace against Lego’s relationship with Shell has been subject to a copyright...

Oxfam advert removed after appearing before extremist videos

10 Jul 2014

Oxfam has removed one of its adverts from YouTube after it was shown on channels showing content from...

Join the discussion

Twitter button

@CSFundraising