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Government should promote donor tax breaks, say wealthy

Fundraising | Becky Slack | 28 Sep 2007

Nearly two-thirds (64 per cent) of wealthy people believe the government could do more to encourage philanthropic behaviour, according to a new report by the Ledbury Trust on behalf of Barclays Wealth Management.

The Changing Face of Philanthropy: today; tomorrow and beyond surveyed over 500 high net worth individuals and 15 ultra high net worth individuals with combined assets of over £95m. Among its findings was the requirement for greater awareness of the tax benefits available to donors, many of whom were unaware they existed.

"There are a number of favourable tax breaks which the government gives, but many [donors] did not know about them or were at first introduced to them via their accountants," says the report.

The figures concur with research conducted by the Institute of Fundraising's Tax Effective Giving Initiative, which suggests there is a large proportion of higher-rate tax that remains unclaimed. "We find at a practical level those wealthy donors with advisers are in the know and are making use of the reliefs, while those who don't have advisers do not," said Lee Grant, the initiative's project manager. "We want the reliefs to be used to the benefit of charity as opposed to the donor, which is part of our ongoing work and contribution to the gift aid consultation."

However, The Changing Face of Philanthropy report also sounded a note of caution: "Despite the support for clearer and easier tax incentives, many of the wealthy feel that the role of the state should end here," it said, before implying that too much interference from the government could actually dissuade people from giving.

For more on The Changing Face of Philanthropy: today; tomorrow and beyond see the October issue of Professional Fundraising magazine, out on Thursday 20 September.

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