The Queen has spoken. Her speech briefly outlined the laws the government will try to introduce in Parliament over the next year. But what does it all mean for charities?
The Small Donations Bill
One bill that has been proposed is the Small Donations Bill. The government hopes this will give a helping hand to small charities. The scheme will allow charities to claim back 25p for every £1 on donations less than £20, on up to £5,000 of donations. Within this scheme, charities won’t need to get aid declarations from individual donors or have to fill in the individual paperwork associated with Gift Aid.
How will it benefit charities?
The idea is that this scheme will reduce the admin for small charities. And the government has said this could mean an extra £85m for those who can claim. But there are a few conditions. Charities will need to have been claiming Gift Aid regularly for the last three years. They will also need a clean three-year tax record.
Chloe Smith, Economic Secretary to the Treasury, said: “This scheme will be particularly helpful for small charities that rely on bucket collections, which can find it impractical to get the necessary paperwork that Gift Aid requires. Charities and Community Amateur Sports Clubs will now be able to claim a Gift Aid-style payment on small donations without the need to collect donors’ details.”
When does it come into effect?
The bill will be discussed until Friday 25th May and the legislation should come into effect from April 2013.
How does Gift Aid work online?
Here at JustGiving, we automatically reclaim Gift Aid on every eligible donation on behalf of our charity members – that’s around 85% of donations made through the site. This compares to just 42% of donations across the rest of the charitable giving sector.
What do you think about the proposed scheme? Will your charity benefit? Let us know by leaving a comment below.