The Charity Finance Group has outlined its five policy priorities for the next government in a document published yesterday.
In its document, Supporting Charities to Do Good, CFG has said it wants to see a focus on gift aid and irrecoverable VAT and changes in the rules around pensions, as its main priorities to support the sector.
The CFG’s five priorities are:
- Invest in a sector-led campaign to improve public awareness and understanding of Gift Aid.
- Create a mechanism for charities to claim irrecoverable VAT so that more resources can be freed up to achieve charitable objectives.
- Pass legislation to enable charities to avoid triggering section 75 debt if they close their pension scheme to future accruals by members.
- Increase and put on a long term footing the budget of Charity Commission.
- Provide funding to improve financial management skills in charities.
“By the time of the election, it would have been fifteen years since the creation of the modern Gift Aid scheme,” the briefing document says. “Now is the right time to promote and refresh the scheme.
“Government should work with the sector to update its visual identity, train trusted messengers such as volunteers and supporters to promote the scheme as well as improve understanding of Gift Aid through new social media.”
It said that reform was also needed for the VAT system.
“At a time when our latest survey shows charities are facing increasing demand for their services and all politicians want charities to continue to be part of the delivery of high quality public services, we believe that the next government should begin discussions on a refund scheme for all charities to be able to reclaim irrecoverable VAT,” the document said.
