#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 […]

Vision for sector post-2015. What did the politicians have to say at the CFG Annual Conferece?

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May 19, 2014 at 17:13

Following our overwhelmingly successful Annual Conference last Thursday, back at CFG-HQ we are now digesting the political nuggets that were debated in our closing plenary by the Minister for Civil Society (Nick Hurd) and Shadow Minister (Lisa Nandy) for Civil society, a key Lib Dem peer (Baroness Barker), the outspoken Rt Hon Margaret Hodge, Chair of the Public Accounts Committee and the CEO of NCVO, Sir Stuart Etherington. A year out from the next General Election, we asked them to tell us what they saw as the key issues that will face the sector post-2015, giving us the perfect insight […]

Managing in a Downturn Report Reflections….

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April 11, 2014 at 15:08

Yesterday saw the launch of the seventh ‘Managing in Downturn’ report – a survey series that we have run in partnership with the Institute of Fundraising and PwC since the start of the economic downturn in 2008. The launch event itself was a lively affair with reflections of the findings from: Andrew Sentance, PwC’s Chief Economist; Mark Astarita, the IoF Chair; and our own Jane Tully. Highlights included Andrew Sentance’s weather map of the global economic outlook for 2014 (sunny intervals for the UK!) and Mark Astarita’s optimism that the baby boomer generation’s large capital assets will have significant implications […]

Research questions to get our teeth into on Gift Aid

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December 2, 2013 at 09:57

The National Audit Office has released a report on HMRC, Gift Aid and other tax reliefs on donations.  Overall it estimates the cost to the exchequer of these tax reliefs to be around £2bn, around half of which goes to charities.  One of the main findings the NAO has stressed is that there is not enough data to ascertain a causal link between Gift Aid and changes in giving behaviour.  Subsequently there is little to determine the value for money of the scheme.  Despite this, most in the sector would argue the success of the Gift Aid brand and the […]

NAO report on Gift Aid: Evidence of a lack of evidence

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November 21, 2013 at 10:44

Today the first of three long awaited reports into charity regulation and tax reliefs was issued by the NAO. This particular report, called for by the Public Accounts Committee under Margaret Hodge MP in light of the Cup Trust affair earlier this year, looks at the value for money of Gift Aid reliefs to the tax payer. Overall the report states that there is insufficient evidence to conclude value for money but makes it clear that this statement relates to current form and implementation. CFG’s initial thoughts are as follows: Data, evaluation and policy focus: We are pleased that the […]

Why charities need to respond to the SORP consultation

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October 17, 2013 at 12:11

Fraud, pledges and legacies represent just some of the key issues where the charity voice needs to be heard, says Richard Bray, Cancer Research UK. The Consultation period for the Exposure Draft of the new Charity SORP is nearly over.  This is now the crunch time as respondents finally decide what they will say in response to it.  But I can’t help but feel that far too few charities will respond.  Why is this? Perhaps it is because we feel that this is all too complicated for us and we will leave it to others and, in particular, professional firms […]

Business rate relief for charity shops in Wales: why it matters elsewhere too

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July 11, 2013 at 14:16

The business rates relief available to charities has been thrust into the spotlight of late.  As well as a number of high profile cases linking charity rate relief to tax avoidance by landlords, they have also been the subject of debate in Wales, following a report by the Business Rates Task and Finish Group commissioned by the Welsh Government. At present charities occupying commercial property are entitled to relief on business rates, provided it is used wholly or mainly for charitable purposes.  This includes 80% mandatory relief funded by central government, which local, or ‘billing’ authorities can choose to top […]

FATCA: What charities need to know

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May 10, 2013 at 10:59

Eva Abeles and Melora Jezierska provide an update on the current status of FATCA legislation and its implications for the charity sector It is fair to say that FATCA (the Foreign Account Tax Compliance Act) has not been on the charity world’s radar as it is, after all, a piece of US tax legislation.  However, charities operating internationally should be aware of FATCA to ensure they are not inadvertently caught by the rules.  What is FATCA? FATCA is extra-territorial US legislation which seeks to combat US tax evasion in a rather heavy-handed manner.  It requires foreign financial institutions (‘FFIs’), e.g. banks, […]

VAT at 40: a win for the exchequer but a loss for the charity sector

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May 7, 2013 at 19:35

Last month, the start of a new tax year, was an unexpectedly busy one for charities, with procedural changes afoot to Gift Aid claims and PAYE, and the introduction of the new Gift Aid Small Donations Scheme. Amidst this noise, a tax milestone worthy of comment almost passed us unnoticed; VAT celebrated its 40 birthday!  Given the sector’s long-standing adversarial relationship with it, it’s a timely reminder of  the VAT anomalies charities face even after 40 years. VAT has always been a hugely controversial area for charities – and is possibly the finest example of where the failure to account […]