21 September 2010
As charities struggle to keep donations flowing, B P Collins looks at how both individuals and organisations can help to fill the gap.
Many charities have had a tough time recently, dealing with the double blow of falling donations from the public and a reduction in corporate sponsorship programmes, as both consumers and firms tightened their belts during the recession.
Also causing concern is the forthcoming increase in VAT to 20% from 4 January 2011, with the Charity Tax Group (CTG) warning that the rise will cost the sector an additional £143 million a year in VAT, having a knock on effect on the level of services charities can provide.
Victoria Holland, senior associate and member of the firm's charity law practice group, said: "There is no doubt that the current climate is affecting charities and donations are lower, but whilst people may be unable to give money, there are other things they can do.
"Organising events and involving staff and clients is a great motivator and an excellent opportunity to really feel you are giving something back to your local community. It's something we feel very strongly about at B P Collins and it gives us a 'feel good factor' to know we are helping others."
Increasingly popular, not least because it is a highly tax efficient method of giving, is to consider setting up a share giving scheme.
"Donors are able to claim relief on any eligible donated shares at the end of the financial year in which the gift was made through their tax return, which could result in a significantly reduced bill from the taxman," added Victoria.
"With Capital Gains Tax increasing to 28% for higher rate tax payers, we expect many more individuals to consider this option.
"On a more personal level, many charities are crying out for volunteers or require particular skills and it can be very rewarding to see what a difference a few hours' volunteering can make." Many of the team at B P Collins are personally involved in charity work, and the firm also supports a wide number of charities at a corporate level.
One example is partner Simon Deans, who has been appointed as a trustee and secretary of Buckinghamshire Community Foundation, used by local people to invest more than £2.7 million exclusively in 1,000 local community groups and projects.
The Foundation recently launched the Buckinghamshire Grassroots Endowment Challenge, providing both existing and new community foundation donors with the opportunity to double the value of new donations to the endowment fund.
For every £1 that is donated for local causes by private donors, the Government, through its Office of the Third Sector, has pledged to add a further £1. The money will be used on projects for the benefit of Aylesbury Vale, Chiltern, South Bucks and Wycombe districts.
Richard Dickson, development director at the Foundation, said: "This is a tremendous opportunity for local philanthropists to play a significant part in helping to support future generations and invest in our local community.
"Not only has the Government pledged to double every donation, but if we can claim gift aid as well, then local communities benefit still further. Plus, with the tax benefits of charitable giving, it means there's never been a better or more cost effective way of giving for long term benefit and impact.
"Building 'Big Society' in Buckinghamshire is what the Community Foundation is all about." For more information on the Grassroots Endowment Challenge, visit the Foundation website at www.thebucksfoundation.org.uk or phone Richard on 01296 330134. |
