Share

Tax cap on donations 'puts Giving Summit at risk'

Sir Stephen Bubb, Chief Executive of Acevo
News

Tax cap on donations 'puts Giving Summit at risk'5

Fundraising | Adam Martin | 26 Mar 2012

Sir Stephen Bubb has warned the government that charities may boycott the Giving Summit this year over the recently-announced tax allowance cap on donations.

The Giving Summit was initially planned for last autumn, having been announced in the government's white paper on giving, but was rescheduled and is now due to take place in May at the Natural History Museum. The Prime Minister is among those due to attend.

But Sir Stephen told the Financial Times that controversial plans announced in last week’s Budget that mean donors will be limited to claiming tax reliefs of the greater of £50,000 or 25 per cent of their total income, cannot be supported by the sector's leaders:

“It is hard for charity leaders to sit quietly listening to plans to get people to give more when their fundraising strategies have been torpedoed. There is a simple solution: remove charity donations from the proposed new tax allowance cap. Do it before damage is done."

The Budget plan sparked an immediate backlash from charities and philanthropists alike, who cautioned that this could lead to a fall in large donations.

Major donor and financier John Spiers claimed the new tax cap will limit the amount he is now willing to give: “I give the majority of my income away. If this goes through as planned, it will reduce my philanthropic activities very substantially. The relief was not of any benefit to me, but it means money going to good organisations that deliver a good return will instead go to the government," he said.

With average earners less able to donate during the current economic conditions, charities have been targeting wealthier donors to fund campaigns.

Adrian Beney
Partner
More Partnership
26 Mar 2012

I can't see how boycotting the Giving Summit, at which the very people you need to influence will be, can possibly help. Conversation it's what's needed, not "toys out of the pram" stuff.

Hilary Barnard
Principal Consultant
HBMC
26 Mar 2012
Response to [Adrian Beney]

Hardly 'toys out of prams'. The Government's own rhetoric on giving and Big Society is being undermined by the Chancellor's intentions announced in the 2012 budget statement. The situation is therefore not one of business as usual, so it is reasonable to make this point strongly with a clear argument. I don't hear any suggestion of breaking off relations, which would be daft. What I do hear is a clear message that the Government should think again and ensure charities have the money for their essential work.

Giveitbackgeorge
26 Mar 2012

Check out the campaign: http://giveitbackgeorge.org/

Stolen
26 Mar 2012

But the taxman will collect more under the measure. Perhaps that will enable government to give more to the sector or reduce the national debt, not that it will necessarily do either.

Carl Allen
26 Mar 2012
Response to [Stolen]

If philanthropists are not inherently Conservatives then what does charity expect?

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

DFID announces UK's first development impact bond

17 Apr 2014

The UK is to launch the first development impact bond - an international version of the social impact...

Sector 'extraordinarily disconnected' from public, CFG chair says

15 Apr 2014

Charities are becoming “extraordinarily disconnected” from donors and supporters who do not understand...

Stephen Frost announced as Charity Awards host

15 Apr 2014

Civil Society Media is delighted to announce that this year's Charity Awards will be presented by actor...

Paula Sussex to be the next Charity Commission chief executive

17 Apr 2014

Paula Sussex, senior vice president, public sector of CGI, has been appointed the new chief executive...

Impact of welfare reforms felt by 95 per cent of Yorkshire charities

17 Apr 2014

A report published today which looks at the impact of welfare reforms in the region of Yorkshire and Humber...

Trussell Trust sees use of its foodbanks 'almost triple' in a year

16 Apr 2014

The number of people using the Trussell Trust’s foodbanks rose from 347,000 to 913,000 in a single year,...

'Technology can offer charities more than just online donations'

10 Apr 2014

Charities are focusing too much on using digital tools for fundraising instead of how technology can be...

Amnesty calls for 'full and frank disclosure' on alleged US surveillance

9 Apr 2014

Amnesty International has warned that alleged mass surveillance by the American intelligence agency NSA...

Virgin Money Giving launches app following year of growth

1 Apr 2014

Virgin Money Giving has launched an app for users after reporting that 30 per cent of traffic to its platform...

Join the discussion

Twitter button

@CSFundraising