Financial sustainability won’t be easy for the charity sector

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July 22, 2015 at 09:48

Today, has seen the launch of the review into the financial sustainability of the voluntary sector, conducted by CFG, NCVO, Institute of Fundraising, Locality, NAVCA and Small Charities Coalition. It has been a long piece of work, involving a call for evidence from the voluntary sector, with more than 100 charities responding to a detailed survey; pouring over existing statistics, synthesising various strands of research and forecasting the future of the sector’s finances. The full report, which you can download here, is a wakeup call for the charity sector, government and funders. Although the economy appears on the road to […]

Some lessons from HMRC’s Higher Rate Gift Aid Donors report

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July 17, 2015 at 09:30

HMRC has published some research that it had commissioned on understanding charitable giving and Gift Aid behaviour amongst better-off individuals. Although I am not convinced that this was the best use of HMRC’s budget (see below), there are some lessons that we can learn from this research – despite the small sample size. Here are a few things to take away from HMRC’s research: We need to improve public awareness of Gift Aid Despite the individuals being interviewed earning significant amounts and potentially claiming thousands of pounds worth of Gift Aid, it is concerning that many participants were confused about […]

Welfare and employment dominate the Budget: What does this mean for charities?

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July 8, 2015 at 14:59

So we didn’t do that well with our bingo card – only ‘long term economic plan’, ‘£9 minimum wage target’, ‘fixing the roof whilst the sun is shining’ and the name dropping of a charity came up. Whilst the budget report does not have a section dedicated to the charity sector, there are a number of measures announced that will have an impact on charity finance which I will outline here. Keep an eye out for our briefing which will be posted on our website in due course. Profile of the cuts £17 billion of cuts were announced in today’s […]

#volsecbudget 2015 – CFG Live Blog

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July 8, 2015 at 09:12

09/07/2015 – 19:16 – AF This afternoon I attended the IFS post-budget briefing. Given the scale of the changes introduced it covered a lot of ground in a relatively short amount of time so will I provide a more detailed update later. But for now, I am going to briefly summarise the key issues that I think are relevant to charity finance. I do also recommend that you take a look at the materials available on their website. The opening remarks made by director of the IFS, Paul Johnson, neatly provides the IFS’s over-arching narrative: that it is hard to see […]

What can charities expect from Wednesday’s Budget? #VolSecBudget

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July 6, 2015 at 17:37

It seems like only yesterday that we were getting ready for the last Budget, but this Wednesday the Chancellor will deliver the first Conservative Government Budget for nearly 20 years and charities will be watching with interest. If the spending pattern follows that of the previous Parliament, we may well see a frontloading of cuts into this Budget as Osborne seeks to make significant changes early on. Whilst charities will not directly be a focus, there is still plenty to look out for in terms of impact on people that rely on charity services and the sector’s funding environment. You […]

What did we learn from the latest Charity Tax Stats?

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May 1, 2015 at 12:17

Blink and you probably missed it, but yesterday, HMRC produced its update to the Charity Tax Statistics for 2014-15. While this might not sound important, they are an important window into the finances of the charity sector. Here are three things that charities should take away from the statistics: 1.    There is still a lot of potential to grow Gift Aid The NAO believes that £2.3bn of donations are currently not being claimed for Gift Aid, so it is pleasing to see the amount of Gift Aid being paid out to charities increased by £130m to £1.2bn in 2014-15. CFG […]

Gift Aid could be the key to encouraging a culture of giving

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April 8, 2015 at 10:21

Charities Aid Foundation has released its latest UK Giving report for 2014 which provides an excellent insight into the state of giving and donations in the UK. One of the key lessons that I believe that we should take from the report, however, is that more needs to be done to encourage a culture of charitable giving in the UK – one of the key asks from the sector in the latest Managing in a New Normal report. This is particularly important for young people. A lot has been written in recent months about the need for the sector to do more to […]

Budget 2015 – Missed opportunities and targeted giveaways

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March 18, 2015 at 14:56

The Chancellor has sat down, the media are pouring over the budget documents looking for stories to come out of the figures, but what has been the impact of the Budget for charities? A slight easing of austerity Looking at the overall picture, it seems clear that the impact of austerity is not going be significantly reduced at the start of the next Parliament, but will be a lot lighter towards the end. Ignoring the effect of inflation, this Budget has seen an easing of the cuts. In 2016-17, the Budget implies that the amount available to spend for departments […]

#volsecbudget – What should charities look out for?

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March 17, 2015 at 10:51

Tomorrow will mark the last Budget of this Parliament, and already a great deal has been trailed in the media from inheritance tax cuts to raising the personal allowance. Charity Finance Group coordinated a letter with other sector bodies at the start of the month to ask the Chancellor to tackle a number of issues such as Gift Aid, Gift Aid Small Donations Scheme, VAT and capacity building for the sector. But what should charities be looking out for tomorrow when the Mr Osborne stands up at 12.30 after PMQs? Here are a few things that we think may interest […]

Fog of uncertainty makes post-election planning difficult for charities

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February 4, 2015 at 14:20

Today the Institute for Fiscal Studies unveiled its Green Budget 2015. The Green Budget is an attempt by the IFS to analyse the impact of spending cuts, tax rises and other policy decisions of the government and parties. It is well worth of a read (though perhaps not all 300 pages of it!), but I think that there are three key messages for charities. 1)  Government spending with charities is likely to be squeezed by more than we think There has been a lot written about the impact of government spending cuts on the sector over the past few years, and […]