Spike in major giving expected after April tax change 0

Charities could see a spike in giving from major donors following the top tax rate change in April.

Richard Harrison, director of research at Charities Aid Foundation (CAF), told Philanthropy UK that the organisation has already spotted signs that major donors were holding out from distributing gifts until after the April rate change.

“We are already seeing some trust clients holding off putting funds into their charitable trusts because they want to take advantage of the new 50 per cent tax rate that will apply in the new financial year; so after April we may see a rise in giving from some major donors,” he said.

Harrison told CivilSociety that given that it is “apparently definite” that the highest tax rate will increase to 50 per cent in April, it follows that the value of higher rate gift aid tax rebate will be greater. “In principle, if the tax increases the propensity for the tax rebate to go either to the individual or to the charity is all the greater,” he said.

He added that the organisation had seen significant number of sign-ups for its charity accounts, signalling that committed giving is also remaining strong during straitened economic times.

Meanwhile, in the same piece featuring predictions for the year ahead, The Big Give’s project manager Helen Cable reiterated the website’s plan to repeat match fund challenges in 2010, particularly following the success of last month’s challenge which raised £8.5m.

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Spike in major giving expected after April tax change

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Organisation: Charities Aid Foundation
People: Richard Harrison